Interview: David Gold

This was followed when he launched an even riskier venture - the downmarket paper The Sunday Sport.

A former apprentice at West Ham United, David then invested in football club Birmingham City, where despite recently reducing his stake, he remains chairman of the club.

Last Thursday he was holding a Q&A session at the Business Startup show at the Excel centre where he spoke to The Wharf.

What brings you to the Business Startup at Excel?

"I've been here many times and it's about giving something back. I love the response of young entrepreneurs.

It reminds me of where I was many years ago. If you inspire one person, it makes you come back."

Ann Summers is now your main focus in business. What is the secret to its success?

"Ann Summers has got three channels. There's no other business like it anywhere. Lots of retailers have internet, but very few have a party plan.

This has a party plan, retail and internet. So it's a very powerful brand and it makes it durable."

How has it been affected by the recession?

"There are businesses that have gone bust because of the recession, there are businesses that have done very well because of it. Primark, for example, is 20-25 per cent up.

But lots are in that middle band, their profits are down of course but as soon as the recession is over they will blossom.

They have trimmed their costs. They've looked at areas they previously didn't look at. People are challenged.

You can't do much about sales but you can deal with costs. By doing that we contribute to the recession.

When they stop cutting costs and when they can't cut costs that is when we come out of the recession.

So don't forget - although don't blame me - I'm actually a contributor to the recession."

When do you think the recession will end?

"I don't think anybody knows 100 per cent but it'll be clear once the worst of the mess has been revealed. For each CEO it is his job to hide bad news for as long as possible.

But eventually that news will come out and once that's all done you will start to see little shoots of recovery.

Over the last three recessions governments have shown they know how to deal with them.

However, this recession is unusual to the extent that it was born out of incredible greed of bankers lending money to poor investments."

Will we learn from that and will the business be a place of less greed?

"The human spirit learns every day. We sit here in an air conditioned room when 8,000 years ago we were in a cave. It's an evolution and we improve every day.

We will learn and then there will be a new scam - because these are only scams. This one is a banking scam.

Guys were making bundles of money and they knew this was not durable, but everyone was making money and no-one wanted to stop it."

You sold many of your business interests before the downturn, didn't you?

"I sold the newspaper, the airline [private airline Gold Air] and half my shares in Birmingham City just before the recession. Now, was that genius or was that luck?"

Was there a particular reason you decided to sell Sport Newspapers?

"Newspapers are of course in decline because they are up against the greatest competition they've ever known with all the communications around now.

I can get the newspaper on my phone. I can get Bloomberg all day in my office."

So why did you keep Ann Summers?

"I'll share something with you. I was looking at succession in the family and thought it was very important it was done right.

Over two-thirds of second generation businesses fail because the principle leaves his business to sons, daughters, nephews or nieces and they all have different requirements.

One wants to sell and go round the world, another wants to run the business. It's too fragmented and dangerous.

I made a decision that it was time to put together a plan for selling businesses that are peripheral.

So I had to look at my two daughters [Jacqueline and Vanessa] and the business they can run successfully - Ann Summers."

Even though your club, Birmingham were promoted to the Premier League, do you worry about the game in general? For example, Norwich City owner Delia Smith said football had sold its soul for money. Do you agree?

"Delia is a dear friend of mine but I don't think so. However, I do believe the soul of football is the fans.

And I believe football has abused them over the last 20 years by charging too much money.

You've got a half empty stadium and yet you're charging huge prices. I believe if you do it collectively you can reduce the charges.

It will affect the players' wages but I don't think anyone is going to be upset that Ronaldo has to reduce his wages to £100,000 a week."

Will football go back to the fans?

"It's already happening. Football is saying enough is enough and we have to protect those fans.

Young fans are the lifeblood of football but if you look at most football matches the dominant thing you see is bald heads.

You want to see is more women and more kids and the only way they can do that is to reduce prices."