Posts Tagged ‘AFC Bournemouth’

Footballing punishments for football clubs, financial punishments for money-makers

Wednesday, September 24th, 2008

As far as indications of aims go West Ham having to pay some £30m to Sheffield United as a fine for – one would guess the panel decided – cheating to avoid relegation is a massive illustration of what the game is about at the top level.

In League Two Luton Town, Rotherham and the very impressive AFC Bournemouth are penalised on the field. They lose points and get relegated in two cases, not in the play offs in the other and two of the three could be looking at the drop again.

That is what lower league football is about. Promotions, play offs, relegations and avoiding them. Not getting points from home games smarts – imagine what losing them in court feels like.

The Premier League is a different beast. The gap after the UEFA Cup places finishes and the one before relegation begins are unified. The table goes: Champions, runners up, third, fourth, fifth, sixth, mid-table, relegated, relegated, bottom.

As long as they are not going to Europe or The Championship then a club can finish anywhere in that group of teams. Taking points from clubs that keep them in that area is a waste of time. At the time a points fine would have relegated West Ham so it is perhaps a credit to the FA that they did not opt for unusual punishments for poetic reasons.

Just as the Football League is all about promotion the Premier League is about retention on the whole and for the majority of the club and the reason for retention is profit.

Had West Ham been relegated the Upton Park fans might have got an exciting season in the second tier rather than another tedious lap of the Premiership which could have been no bad thing but from the club’s point of view the word “disaster” would have been thrown about which would have been more to do with balance sheets than league tables.

In that context it makes sense for a fine of pounds not points for Premier League transgressions because earning money is what the Premier League is all about.

Sheffield United’s relegation stopped them from earning the slice of the pie that West Ham will give them. Any claim that they lost out on footballing reasons is made void by the appointment of Bryan Robson. That was just football suicide.

We worry about who is running our clubs when we should be worrying about how

Thursday, September 18th, 2008

It is hard to imagine a sight less dignified than the public hawking of Newcastle United by Mike Ashley as he tries to off load the Geordies attaching the sale rider that the club requires a bottomless pit of money.

Ashley contests that only wealth at the level Manchester clubs now enjoy will bring silverware and happiness to the supporters although the evidence of Spurs and neighbours Middlesbrough bringing back prizes suggests this to be a misjudgment on someone’s part. Unfortunately all football seems to buy into the idea that the richest wins all despite Chelsea’s two years of running up. It is more accurate to say that the biggest wins unless they mess it up and that biggest is at Old Trafford with Newcastle not that far behind.

Regardless the Magpies are shopped around with the idea being – and the worry that – they will be the latest club to fall into the hands of overseas investment.

Each time there is a purchase of a club by non-English investors alarm bells are sounded do the future of our game so much so one could be forgiven for thinking that we have a monopoly on good governance in football. With almost half England’s professional clubs having used bankruptcy protection in the fifteen years since the formation of the Premier League that supposition would seem to be far from the truth.

English ownership covers Risdale and Richmond just as much as it does any examples of the better run sides and the likes of Randy Learner and his slow, deliberate building of Aston Villa is as valid an argument as any for the idea that it is not who owns clubs that is problem so much as how they are owned.

Learner probably has the best manager in the business in Martin O’Neill – he got him in place before he arrived – and backs him up with sensible signings. James Milner, Gabriel Agbonlahor and Ashley Young probably take home the same combined as Robinho and unless the situation in England’s second City is out of focus the club is run within the remit of having huge out goings met by the huge income of a Premier League club. Morally one might question the size of the figures but from a business point of view there seems to be equity which one simply cannot say about Manchester City or Chelsea.

Distressingly one would thank that outside the realms of the mega-rich clubs at Eastlands and Stamford Bridge the thinking would veer more towards a model of attempting to balance the books or when attempting to advance the club investing soundly but the experiences of those down the leagues suggest that in most cases this is anything but. The well run teams are accused of a lack of ambition and those who overspend seem to do so in the assumption that when the chickens come home to roost they will be long gone. Any sympathy one could have for the likes of AFC Bournemouth or Luton Town is not shared by supporters who have seen their teams lose out on promotions and progressions in cups to a team bought on the hock.

The Football Association has recognised the need for control of finances starting running the Football Conference as a tight ship but the Football League struggles to do the same unwilling to douse the flames of passion that come to the game via investors in their local club but incapable of ensuring these new investors behave in a way that even guarantees a long term future.

The popular perception of football investment is that it is done in the transfer market and by paying higher wages and one would be niave to suggest that was not a factor in the improvement of clubs. Squads are important but so are supporters and the recruitment of the next generation of fans which is failing at lower levels with the jump between the child’s rate and that for teenagers being simply too steep. A wise investor looking at trying to create something other than a season or two on the field would do well to look at subsidising or creating a way that will build the fan base for a generation or more.

Likewise facilities are a way of ensuring revenue streams for clubs and it is telling that while Gillett Jnr and Hicks continue to fund Liverpool’s squad a section of support are bitterly opposed to them on the grounds that they are not building the new stadium putting the future success of the club at risk.

On the whole football chairmen fail to understand the best way to invest in clubs because they do not grasp genuine value in clubs. They look at playing squads and imagine how much a player could be sold for but more acute book keeping would render Robinho’s £120,000 a week as a liability from which the business suffered and his resale value as windfall payment rather than a reason to value the club more highly.

The real assets of football clubs are position in the league set up and the sponsorship and television deals that bring, good will – in the support and in the brand – and facilities. The league position is temporary but the contracts it bring in are easily read, the facilities can be assessed with some ease but that middle element – good will – is harder to put a value on.

However Mike Ashley values Newcastle United as twice what he paid for them because he understands that what Freddy Shepherd sold him at the value of a mid-range debt ridden Premiership club is actually one of the league’s strongest with a permanent tradition of support and a strong brand. His hawking of the club around is undignified for sure but having bought the club on the cheap he is not so much trying to get rid of it quick as realising the value of his investment. Shepherd’s last cock up at Newcastle was to not understand the value of what he had.

Too many chairmen are the same. They have a thing of value but have no idea how to augment that value and end up spending the club’s resources on things of no value – players – and not the assets they have got – good will.

We worry so much about who owns football clubs and where those investors come from yet we do not worry at all about how those clubs are run or even if the people who own them even know what they have bought and how much it is worth.