Prune Juice

A term attributed to ‘showbusinessman’ Alan Sugar, which refers to revenues which come into a business and are lost very quickly and unavoidably as costs, and so do very little if anything to actually improve trading profits. Sugar used this term referring to the vast TV revenues paid to top soccer clubs, which flushes through their businesses as similarly vast payments to players. A business which benefits (or suffers) from the prune juice effect tends to give the impression of being much bigger and more solvent and profitable than it actually is. Prune juice revenues also tend to dictate business expediture models which dilute real strategic and management control of the business owners, so that the providers of revenues exert a very high level of influence.