FSA fines Sportsworld boss £45,000

THE Financial Services Authority has censured Sportsworld Media and fined its former chief executive Geoff Brown £45,000 for failing to issue a profits warning in time.

This is the first time the regulator has used its enhanced statutory powers to fine a director of a listed company.

The FSA found that Sportsworld failed to tell the market its profits would not hit expectations until 28 January 2002 despite being aware of the problem on 24 December.

The share price of Sportsworld, which part-owned the rights to the Popstars TV series and produced the Pepsi Chart Show, collapsed after the profits warning. The company went into administration in April 2002.

FSA director of enforcement Andrew Procter said: 'Mr Brown and Sportsworld's failure to inform investors and other market participants of changes in its performance... without delay, and not a month later, could have caused investors to make decisions based on inaccurate information.'

The ruling makes it clear that the FSA decided the buck stopped with Brown as chief executive. It found that although the trading position continued to deteriorate in January the full board was not told until it met on 25 January.

Brown has 14 days to pay the fine and has not appealed. In Sportsworld's last full year, 2001, he was paid a total of £350,000.

The FSA said that Sportsworld 'would have been subject to a substantial financial penalty' but it has been told by the administrators that the company has no money left to pay a fine.