dom
Well-known member
It's a bit like being pulled over by the cops for having a brake light out. While you're there, they'll have a look at the tyres, the headlamps, check that you're wearing a seatbelt and so on. If you come to the attention of the MAIB because of a death, they won't just investigate that, they'll investigate everything to do with the safe and legal operation of the boat, and if they find, for example, that two members of the crew of a boat have written to complain about inadequate repair work they won't discount that simply because it wasn't immediately relevant to the accident.
Even more so if they have recently had to investigate two other fatalities and a total loss after grounding.
An important point with potentially serious consequences for a business like Clipper, especially when taken in conjunction with the possibility of pending legal action on behalf of deceased or other participants alleging damage.
Clipper's statutory accounts are tricky to interpret given the biannual nature of the race, but we can see that over 25% of gross turnover is derived from sponsorship income with the bulk of the remainder derived from income paid by race participants. We can also see that around 65% of Clipper Ventures' £20.7m of book value assets are financed by debt. Such high levels of debt will have attracted numerous charges, loan covenant, etc. to provide security for the lenders.
Looking to the future, according to the accounts, "The principal risks to our Company arise from economic conditions and marine operations/accidents/incidents".
A blame the regulator strategy has certain advantages, and indeed cigarette companies are currently challenging the U.S. Food and Drug Administration's decision that the selling of menthol vaping products constitutes a pathway to the explosion of U.S. teenagers smoking incandescent menthol tobacco. Such legal bust ups are expensive and require careful PR management. They are almost certainly way beyond the relatively modest means of Clipper Ventures. The Clipper vs. MCA/MAIB vs Clipper battle may provide a useful distraction, it may seriously damage Clipper, and indeed Clipper may even be right. Either way, it's highly unlikely to be settled in court.
Turning to corporate sponsors; a list including 3 deaths in 2 races, swirling legal action for damages, Facebook pages full of anti-Clipper stories, and to cap it all a request to the Government no less for an inquiry into the competence and honesty of the responsible legal authorities.
Few companies will want that little lot to play out with their logos emblazoned on the sides of their vessels! At the very least, they'll wait on the sidelines to see. Not to mention the loss of top photo opportunities such as the 2011 naval escort to the Needles by HMS Illustrious. It is hard to imagine a better photo backdrop than a fully commissioned aircraft carrier.
Then there are the paying punters in relation to which the 2019 accounts note, "the risks to UK economic growth remain significant and future prospects may be influenced by developments in the run in to and following Brexit".
Perhaps, or perhaps other factors are at play. We'll have to wait and see.
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