Posts Tagged ‘Newcastle United’

Those things that cannot be counted as Kaka talks to Manchester City

Thursday, January 15th, 2009

There is no measure of the things that could have been. It is not possible to say the result of D from the addition of A + B = C. There are things we know in football and things we speculate on and the two should not be confused.

We know Manchester City are making a £100m bid for Kaka and we know some people question it. For Manchester City’s sake one would hope that when the cheque is signed for the player another is made out to the business to cover the costs of £500,000 a week for four years and put in a locked account. It would be an horrific legacy to be left with should Sheikh Mansour bin Zayed Al Nahyan – who is funding the Blues – opt out.

Why would he opt out though? This accusation of short-termed-ness was made towards Roman Abramovich when he arrived at Chelsea but the Russian is still making bank transfers at the end of each month to pay for the wages that outstrip the income. In the full remit of football experience at the higher levels one struggles to think of a chairman who has exited simply because he has become bored. Even Simon Jordan – probably the most high profile exitee – has his reasons for going.

So there is little reason to believe that Sheikh Mansour will leave City at all – let alone with debts just as Abromovich remains, just as Jack Walker remained at Blackburn Rovers. The players stay at the table even when the stakes get higher – What is going on at Eastlands is a rising of the stakes in football and while we should not doubt the spending power at Stamford Bridge we could compare the London club to those at Ewood Park in being out gunned in spending now.

What we cannot compare – what we will not know – is the effect such big numbers have on the potential investors. How the cost of living in the Premiership and outside it affects the business men and other would be chairmen when they come to look at buying clubs. Mike Ashley at Newcastle United arrived admitting that the club could never compete in a cash fight with their Premiership rivals and his decision to buy the St James Park club is hardly unquestioned. How many other Ashleys who could be investing are looking at the voracious appetite for money and deciding to stay away.

How often is that happening lower down the ladder? What would be the point of buying a Championship club, a League One or Two club, when you look at the cost of doing business at the top level and decide it is more suited to countries and corporations rather than football supporters with deep pockets.

Of course none of this matters. Manchester City’s deep pockets enable them to buy unsettled Brazilians and struggle with relegation while Liverpool spend not massive amounts and top the Premiership. If you want to progress your club at every level then run it well, build permanency in management and structure and progress will be made. Manchester City are less of a threat to the Premiership title this year than they were last under Sven Goran Errikson and still the same danger as they were when they employed Joe Royle or Kevin Keegan – none.

However trickle down economics rule in football and aside from perceived problems for would be investors there is a very real issue with inflation which football has no beginning in answering. Football’s finances are so out of the control of football’s authorities it is almost impossible to see them coming back in.

Manchester City, Shrewsbury Town, Gretna. No club is ever required to prove sustainability to their spending plans and in the latter case it is the community which ends up suffering as it loses an asset.

We can count the losses with ease but have no way of tallying how many good people who could improve the game stand on the sidelines as the wheels of finance spin faster and faster.

Perceptional problems lead Spurs down the wrong path once again

Monday, September 29th, 2008

It is with heavy heart that we say goodbye to the Saturday evening ritual of watching the deluded try convince Simon Cowell of X Factor that if only he would put them through they would be able to convert out of tune screeches into being the next Mariah Carey.

That competition reaches a more refined stage while the Premier League’s version of the auditions continues. Newcastle United have been covered at length elsewhere but in 19th they sit above Tottenham Hotspur.

Two pieces of news are seeping out of Spurs at the moment. On the one hand they talk of the future of manager Juande Ramos, on the other chairman Daniel Levy is rumoured to be holding out for £400m to sell the club.

Ramos must wish at this point that he could wake from the slumber caused when he was struck by a missile thrown from the crowd and find he was still a manager in Spain and had never heard of Spurs.

Like many managers at White Hart Lane before him he is asked to do much but given too little of the one resource a manager needs most to do anything. He has no time.

With a picked over strike force he needs to build again but very few now believe he will make the next transfer window to make changes. He is stuck between the rock of damaging his reputation and the hard place of Spurs’ crushingly misplaced image of self.

Spurs are a club living on glories which are long since past but unlike the St James’ Park trophy room no dust settles as occasional a door is opened and a League Cup put in. This is not to say that they are not successful or that the League Cup has no value just that they are a club that looks are those returns and does not equate it with the being the same return as the likes of Oxford and Norwich once claimed. They see it as a sign of a deserved greatness.

The club – inside and out – differs from Newcastle mostly in geography rather than attitude. The Spurs fan believes Ramos is underperforming but over the course of his time in London his record is comparable with other inhabitants of the hot seat. At time good, at times not so. All very Spurs.

Spurs are not one of those warblers who cannot hold a tune that Cowell and Co laugh out of the auditions. They are one of those good but no better than many people who fall just before the live show begins. The sort that tells Simon how much they want it and why he should not kill their dream without realising that the people ahead of them have done more hard work, have shown more commitment or in some cases are simply more talented.

The same impatience that sees managers replaced that is commonly levelled at supporters at St James’ Park is in evidence at Tottenham Hotspur and like the Magpies the issue is not underachievement but rather a failure to recognise that the fifth of Spurs and the top threes of Newcastle are superbly creditable over-reaches.

In the end Spurs are Newcastle with better PR that stops them being labelled as the tumultuous club they can be. Both are are Leeds without the meltdown because as with Sir Bobby Robson and Martin Jol pushing out David O’Leary under the belief that another manager would take the club on was a misjudgement based on the idea that the club was not over-performing at the time.

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.