KSE Out!! – THE BAD DECISIONS…. #WeCareDoYou

So what are the bad decisions here?

In 2011, when KSE became the major shareholder, the picture than was a bit different from now.
There was more fo a top four than a top six.
City was emerging and had won its first FA Cup (nay trophy) in decades.
Spurs were flirting with top four – and under Harry Redknapp had built a side with some good players. van der Vaart, Bale, and Modric amongst others were all key in a side that did reach the top four in one season and pushed Arsenal close in others.
Liverpool was in a slump under Hodgson and the return of Sir “King” Kenny Dalglish as manager. The latter won them a League Cup but couldn’t restore them as needed.

And Chelsea was at the height of the Abramovich era, with his monies financing top players with top managers.

So Arsenal was comfortable. It held its own amongst the top and could afford to do so on this model.

Arsenal couldn’t outspend Man United, Man City or Chelsea, but was in a better state than Liverpool and could outspend Tottenham.

Some austerity was self-imposed, due to the stadium debts, but the PL and CL TV monies were enough to tide the club over.

What changed then?

Well, City ramped up their spending.

Tottenham declined slightly under Andre Villas-Boas and Tim Sherwood but took a punt on a promising Southampton manager named Mauricio Pochettino who would make them a consistent top-four side and help them reach their first ever CL final.

Chelsea was still strong – and won cups, leagues, and European trophies in this period.
And Liverpool nearly won the league under Brendan Rogers and signed up Jurgen Klopp as his replacement after him leaving Borussia Dortmund.

Leicester won the league in 2016, and since then have sought to sustain themselves in the upper parts of the table.
Everton is a club with much history in English football – but now has the finances to compete.

So the competitive landscape changed, and the club didn’t act to match it.

What’s more is that Arsene Wenger, despite his rightful legendary status at the club, was being left behind tactically by other managers and this showed when the club finished outside the CL places in his final two seasons.

KSE has overseen this ready decline – and they only have sought to correct things until it was too late.

The bad decisions

2014 – No world-class striker in the summer window. The club did get Sanchez – but Giroud needed support and thus the club became also-rans in the league.

2015 – Only signing Petr Cech – the club needed a striker and a defensive midfielder, but then whilst a keeper was a necessity, it was a waste to just do this. this highlighted the arrogance and poor recruitment of the club overall.

2016 – Gaining Xhaka, Mustafi and Lucas Perez for £90m in total didn’t pay off.

2017 – another weak transfer window, with only Lacazette and Kolasinac, bought in this period. However, maybe the club made a mistake in keeping Wenger on fro this period, and he should have gone after the FA Cup final win vs. Chelsea.

2019 – Signing Luiz hasn’t paid off, and signing Pepe was arguably unneeded. the club required a centre-back, and not a wide forward.

The club only got Torreira, as a more orthodox DM, in 2018, despite needing such for many years. and even then, he hasn’t played in his proper position often. This negates his purpose and function in the side.

Another major negative point is that the side has been undeveloped for years – Wenger nor Emery could solve the defensive lapses and tactical mishaps. Yes, KSE isn’t responsible for team tactics. But they are ultimately responsible for the club’s performances in all areas and thus can put pressure on coaches for this to improve.
They may well have, but such pressure hasn’t really manifested properly.

We have rot in our club. And KSE has permitted this to manifest, fester, and grow, to where we are in our current state.

KSE needs to shape up – or frankly go. They are mismanaging and messing up our great football club.

And more to the point, as I write (1st Jan 2020), Arsenal is precariously near the relegation zone. Who has led up to this position? Who has held the ultimate charge in this regard, and enabled a cultural rot to set in? Nobody else can take the flak here.

KSE Out!

2019 was a bad year for Arsenal.

There were some highs, namely wins over Chelsea and Man United in the league. And over Napoli and Valencia in the Europa League. The club also signed Nicolas Pepe as a record signing of £72m, and the club further “won” the summer transfer window.

But the lows outdid the highs.
Chelsea demolished the Gunners 4-1 in Azerbaijan in the EL final.
Head coach Unai Emery got sacked in November 2019, after several poor results. He could not correct the defensive errors and mishaps occurring and paid the price for such.
The side also had a chance to get top four in the league in the final games of 18/19, but a defeat at home to Crystal Palace, defeat away to Wolves and Leicester City, and a home draw to Brighton and Hove Albion, all saw the struggle to get over the line.

The club’s summer signings also didn’t get much traction in the season. David Luiz has been poor. Pepe has not hit top form consistently, and Dani Ceballos has been hit and miss also.
Youngster Gabrielle Martinelli has been outstanding, and William Saliba has been fine at Saint Etienne but then won’t join Arsenal officially until summer 2020.

So despite some promise, the club folded and failed in key moments.

There is only one factor here that can take culpability here. It’s the owners – Kroenke Sports Enterprises (KSE).

Since they gained majority shareholding in 2011, the club has seen a ready decline in its off the pitch and on the fortunes.
It seen a club that was a consistent Champions league club descend to the lower reaches of the PL table.

ANd it has been a culmination of poor decisions and weak accountability that has seen Arsenal descend.

It’s now time to call out KSE – and demand they ensure that proper decisions are made.
As seasoned business owners, they know that any successful organisation is run properly from the top. Those in control know that a business must hold a sound strategy, which thus ensures all operations are conducted smoothly and successfully.

Our club has been mismanaged for many years, and it’s time to stop this trend.

KSE OUT – since they’re not in Arsenal’s best interests.

#footballfinance – Why is football these days so money-oriented?

There are several reasons why, in my mind, football has become more money-driven. It’s due to:

  • Globalisation of media

With 24/7 TV access, and the Internet, there is far more scope for TV revenues from many countries. The BBC, CNN, NBC, Al Jazeera, Sky News, Canal +, etc. all possess 24/7 news networks. So any footballing, or sporting, event can be broadcast within seconds of it occurring.

Digital TV is now the norm in many countries, and is spreading rapidly. This affords more channels, and at better definitions (HD) than ever before, allowing for a superior viewing experience. More channels, and also more smartphones and Internet connectivity, mean greater scope for broadcasting games. This relates to a natural ability to spend more on TV rights.

Image result for global media

  • An already popular sport

Football has long been called the people’s game. Sports such as horse racing, cricket, rugby union, or tennis, have traditionally been upper/middle class pursuits. Football however has been the sport mostly followed by the working classes and the masses. Whilst boxing and darts are also within this category, they’ve seldom attracted the following nor attendances of football.

So if there is demand, supply will follow. BSkyB, BT Sport, Bein Sports, NBC, etc. will spend big money as they know people will watch.

  • Clubs are increasingly commercial concerns with commercial interests

Many football clubs are owned by business people, with the stated goals of earning revenues. The community feel has been eroded, and clubs have recognised that with more revenues, they can sustain their own corporate goals and fiduciary positions.

Man United has the biggest turnover in the world, and is forged through commercial deals, TV revenue and match-day income (in order of value). This permits them to spend immense amounts on transfers, as they milk the huge global scope they have. Lukaku recently stated that they are the biggest club in the world. Real Madrid may contest that, though they certainly are pre-eminent in terms of their size and scope. The Man Utd board know this, hence the means for this.

Image result for chinese ac milan owners

  • Consumer trends

Sport participation, whether spectating or playing, has always been high. However, media houses have sought opportunities to present sport as a consumer entertainment package. This is true of all sports, and transcends football.

20/20 cricket was invented as a user-friendly mode. It may not be to the purists’ liking, though it’s not meant to be. It’s about a shortened and exciting form of cricket, vis a vis Test cricket, or even one-day internationals. It’s designed to meet the needs of consumers, who want a shortened and compacted game, as opposed to five-day Tests.

Football is using similar rationale. This relates to the first point, in that football is popular, and there is already a huge demand for consumption.

  • Rising economies

Much is made of the rise of China, India, and the shifting of economic power from the West. With growing economies come higher living standards, and thus more disposable incomes. Moreover, countries such as China and India are seen as the next frontier of football, and thus clubs are marketing themselves in these countries to gain commercial revenues.

Arsenal is undertaking a tour in China this summer. Real Madrid, Barca, Chelsea, Man United, Liverpool, Juventus, Bayern, etc. have all played major friendlies in foreign countries of late. This is to promote themselves and football in these emerging markets, and connect with fans and sponsors in these regions.

The TV deals for the biggest European leagues will thus have an increasing share from South America, Africa, the Middle East, India, China and Australia. Australia is not a poor country, though it is an emerging footballing country as cricket and Aussie Rules have been predominant sports in its history.

This video from Copa90 references geo-politics, and how China is using football to grow its soft power in the world today. Economics and politics are always inherently linked, and business activities often can reflect economic ends. It’s no surprise then that the Chinese government may be pursuing this avenue.

So as football is reinforcing itself all the time as a global game, the trend towards commercialisation will only heighten.

Will the bubble burst? At this point, it’s unlikely, though not impossible.

 

#FootballFinance podcast – Budding writers, podcasters, content developers, and sports digital media professionals…

This is an appeal of sorts for budding sports/football media professionals, who are interested in gaining experience.

http://www.crowdfunder.co.uk/marblehallsfootballfinance?tk=249ab56c77f5b01bebf0db07a55e6ca0b577c2da

The Marble Halls Football finance podcast is looking for people to invest in this podcast, and essentially crowdfund it.

If you don’t know what crowdfunding is, see here- https://en.wikipedia.org/wiki/Crowdfunding

Essentially, we would all contribute to building this up. And if one wishes to leave further down the line, then fine.

However, all terms would be subject to an agreement, so we’re all on the same page. This would include payments, scope of works (what needs to be done and by whom), and who is liable for such.

We would all be in the same boat, as those new to digital media.

My own background is in digital marketing/strategy, and have been a Gooner for over 20 years. Incidentally, I am Wenger Out, but respect what he’s done for the club, and my favourite player of all-time is Ian Wright (Alexis in the current team).

If you are interested, then contact marblehallstv@gmail.com. You can also send a detailed content plan, and if we agree on it, we will utilise this going forward.

This offer is open to any football fan supporting a club in England or elsewhere, who is fluent in English (written and spoken) and wishes to help build football finance knowledge amongst wider fandom.

Academic leanings are not necessary, but preferred. Those who have a digital media/marketing background or have degrees in business, economics, finance, or accounting would be desirable.

Thanks, and enjoy the summer, and whoever you follow (even if you’re a Tottenham fan, as this is not partisan it’s about finance) enjoy the 17/18 season.

Our issues (part 2)

Our issues (part 2)

This has created the culture of complacency, which has allowed other clubs to match us on the pitch at least.

Wenger also is not doing it tactically, nor in terms of motivating the players. This coupled with the overarching aim merely being financially healthy, leads to our malaise.

With a stronger goal, mission and vision, and a strategy and culture of ruthlessness, we can gain traction and utilise our many strengths as a football club to get the success we desire.

We have the following points, all in world class status, presence, and status:

– Stadium
– Fanbase
– Training Ground
– Revenues/brand value/market value
– Online presence
– Scouting network

We have the tools and structures place. But not the attitude, culture, or strategy to progress. Only when one matches the other, will Arsenal be fully primed for success.

Why are we in this situation? My diagnosis…..

Why are we in this situation?

My diagnosis

Arsenal Football Club is sick, since it’s not performing to its optimum, despite being a global brand, a long-standing great name in English football, and having one o the biggest turnovers, market value,and brand value, of any club in the world.

Our issues are both managerial and strategic:

Strategic

Our mission as a football is not to compete at the fullest. It is essentially to be financially secure, which we have been for decades. Though whilst we are in a highly financially oriented game, many other clubs marry financial advancement and on-the-pitch success well. We do not. We are geared towards the financial bottom line and not doing it on the pitch.

Managerial

The issues surrounding Wenger are well-documented. However, the three at the back notwithstanding, it’s pretty telling we need more tactical changes.