Food poisoning outbreak highlights risk vulnerability
Date Published : 16/05/2006
Source : JLT Press
London: 16th May 2006
Food poisoning recently hit the headlines following the illness of 10 Tottenham players only hours before a critical match with West Ham. This illustrates the vulnerability of hotels, restaurants and other businesses responsible for catering at public events to, for example, negative publicity and reputational issues
London, 16 May 2006
Food poisoning recently hit the headlines following the illness of 10 Tottenham players only hours before a critical match with West Ham. The match ended in defeat for the team and an initial investigation by the UK Health Protection Agency has proved inconclusive as to its cause, despite the discovery of a virus in one of the players.
Although this case hit the headlines merely because a high-profile football club was involved, it illustrates the vulnerability of hotels, restaurants and other businesses responsible for catering at public events to, for example, negative publicity and reputational issues - even though, as it appears in the Tottenham case, they may not be culpable. It also reveals how the finances of sports clubs may be negatively impacted as a result of players being out of action.
As well as having to deal with the medical urgency of severe illness business may also face legal and financial penalties as a result. The fact that Tottenham has finished 5th rather than 4th in the Premier League may have financial implications for the club.
For example, Duncan Fraser, a partner at JLT Sport, risk managers and advisers to the UK's sports and entertainment sector, estimates that finishing 5th as opposed to 4th may cost Tottenham roughly £500,000 and for each place any club drops in the league circa £500,000 is lost, as well as the cost of not making the UEFA Champions' League.
"Whilst Tottenham may not have made the Champions' League if Arsenal win their game against Barcelona the defeat against West Ham could cost them anything between GBP 10,000,000 and GBP 12,000,000 in lost revenue," says Fraser.
"From an insurance point of view Tottenham could have bought insurance against not qualifying for the Champions' League from an event such as food poisoning, either at the beginning of the season or say at Christmas. This type of insurance is commonly bought in Europe. Cover can be arranged for teams not to qualify for European competition or to be relegated from a particular league.
"The cost of this insurance would have been quite high but would have included recent events and the key to avoiding situations like this is good risk management," he says.
Some of the New Zealand rugby team suffered from food poisoning before the 1995 Rugby World Cup final in South Africa which South Africa won. Foul play was claimed but nothing was ever proved. As a result Sir Clive Woodward insisted that a chef traveled with the England rugby team to prepare and cook food. This was the same for the 2005 British Lions trip to New Zealand.
Fraser adds: "Other sporting personalities who have been hit by food poisoning include Paula Radcliffe. But a bigger concern might be if a football club selling food at a weekly game provided hundreds of fans with food poisoning. Ecoli poisoning or similar could lead to a multi million pound insurance claim."