Sokol backs investor for debt burdened lottery company

Heads of the national sports association Sokol have recommended that an outside investor be brought into troubled state lottery company Sazka. Saturday’s recommendation from the second biggest shareholder in the lottery company follows a similar stand taken earlier in the week by the biggest shareholder, the Czech Association for Physical Education. Sazka is in serious financial problems unable to pay the debt and interest payments on the former Sazka arena, now O2 arena, built for the 2004 World Ice Hockey Championships. The company’s rating was downgraded to ‘D’, or default risk, by international ratings agency Standard and Poors during the week. Betting company Synot and financial group Penta have offered to invest in Sazka in return for a stake in the company.

Author: Chris Johnstone