Premiership wins a license to print money, but who profits?

June 2, 2016

Claudio Ranieri

While international success continues to elude English football clubs, its Premiership has acquired a license to print money. But who profits from it?

Next month, the European Football Championships begins.  Of the so-called home nations, England, Northern Ireland, The Republic of Ireland, and Wales have all qualified. Scotland, riding high politically in its efforts to make a break with the rest of the United Kingdom, continue the Brexit process by making a break from qualifying this time around.

In a league of its own

But financially as well as literally, England is in a league of its own. The Premiership continues to strengthen its economic prospects. This is rather strange, as its success is not matched by the performance of its international team, or of its Premiership big hitters. In recent years these have been Manchester United, joined by billionaire backed Chelsea, together with the Mancunian noisy neighbours City, and the well-heeled Gunners of Arsenal.

Even the iron rule of ‘big bucks rule’ broke down this season, with the thousand to one outsiders of Leicester winning the premiership. [Manager Claudio Ranieri pictured above.]

What is happening? Where will it all end?

Deloitte, a financial organization, takes a favourable view. The future is bright.

This is based on financial projections. As another commentator remarked,

Football is the global sport.  Interest is still growing. The Premiership is the hottest football franchise of all, with huge TV rights, sponsorship, and is increasingly attractive to all vut a few of the the top players.

As with the current EU debate, the argument could be contested, but it carries some weight. Football Premiership style is fast and exciting. It is also technically rather flaky, and more physically demanding than other top leagues such as those in Spain and Germany.  The recent results in the top team competition, The Champions League, confirm this point.

The Leadership Question

On the leadership front, the general position is that top clubs seek out the top international coaches.  Manchester City has moved to obtain Pep Guadiola to add the final piece to the jigsaw puzzle to become world beaters.

The response from Manchester United was to hire the self-styled special one Jose Mourinho to nullify any competitive advantage.

A great coach might be a necessary ingredient for success. Necessary but not sufficient.  And a coach may achieve great results with fewer resources than the competition.  Jurgen Klopp (now galvanizing Liverpool, and Mourinho started his rise to fame that way, as did Brian Clough a generation earlier, and arguably the great Sir Alex Ferguson, whose shadow Jose now has to step away from. Such a coach will attract and retain the key match winning players also needed.

 


The Charismatic League Tables for October 2015

October 6, 2015

Alexis TsiprasThis month, media attention turned to new entrants Nigel Farage, Andrew Castle, Arsene Wenger, Sir Alex Ferguson and Tony Pidgley. But the award of charismatic leader of the month went to the re-elected Prime Minister of Greece, Alexis Tsipras

The results were based on news stories studied in September 2015

Prime Minister Tsipras received the award for the manner of his re-election and his skill at maintaining his credibility over a period in which he went from leader of the opposition to austerity measures to the  leader in charge of enacting them. Technically he was elected leader of his party and then leader of the Government in a coalition.

Stories were also found which resulted in a reappraisal of the positions of politicians David Cameron, Jeremy Corbyn and Donald Trump, and football manager Jose Mourinho.

Jose Mourinho has jumped to Division One for the manner of his interviews defending his lack of culpability over Chelsea’s bad start to the football season

Arsene Wenger, one of the butts of Jose Mourinho’s jibes, and also of Sir Alex’s recently published remarks, always defends himself logically in public, but with little charisma, and so enters in Division Four.

His former protagonist Sir Alex Ferguson returned from a period outside the headlines with a new best-selling book on business leadership. The vibrant illustrations of his leadership style indicate he exercised powerful influence although he denies being ‘a monster… in my reign’  [in his Reign.! Hmm] One to watch for a revival of his charismatic interviews which may even take him to the Premiership  of the Charismatic League, where he would surely want to be.

Jeremy Corbyn has attracted considerable media attention, and has been described as charismatic. His self-effacing style is unusual and he may well be a member of a rarer category of leader with some charismatic aspects yet perhaps closer to the leader of ‘humble style but with fierce determination’ written about by Jim Collins.

Nigel Farage made a strong charismatic impression on his UKIP conference audience,  and enters the tables in Division One.

Donald Trump has strengthened his position in Division One after several high impact performances where he cheerfully defends the  indefensible.

Andrew Castle attracted much criticism for his tennis commentaries particularly in the Davis Cup match between England and Australia. He seemed to have failed to engage viewers positively. He inspired the Face Book page Shut-Up-Andrew-Castle-you-know-nothing-about-Tennis Sorry Andrew. It’s Division Four for you, when you are keeping Tim Henman company.

Tony Pidgley of The Berkeley group received media attention for a life style that has a decidedly charismatic flavour to it, as he battled with activist shareholders who were seeking a more conventional leadership style of corporate governance. A worthy entry into the league tables.

The tables will be revised monthly until further notice. All proposals will be examined carefully by the editor of LWD before changes are made. The editor’s decision on such changes will be final. This utterly undemocratic process is one designed to avoid entryism, and other attempts to influence the league tables for personal interests.

Read the rest of this entry »


Change at Manchester United

September 14, 2014

by Paul Hinks

Manchester United’s current turmoil provides a platform to explore how leadership dilemmas are influencing events at the world famous football club

THIS DEVELOPING STORY IS BEING UPDATED REGULARLY.  ADDITIONS TO BE FOUND AT THE END OF THE ORIGINAL POST

On the 10th Sept 2014 the BBC reported Manchester United’s annual revenues They had risen by 19% to £433.2m -but they also reported an 84% drop in Man Utd’s profits.

Executive vice-chairman Ed Woodward directed attention towards a new shirt deal with Adidas. When a club of Manchester United’s stature is discussing shirt deals instead of trophies there’s implicit recognition that it has fallen below its own high standards of achievement.

Change vs Inertia

Sir Alex was manager of Manchester United between 1986 and 2013 – his teams became synonymous with success, dominating footballing headlines for all the right reasons. Trophies symbolized the success; fans and pundits alike enjoyed watching an entertaining style of football which also delivered results – to the envy of rival fans, this was the ‘Manchester United way’.

Manchester United’s culture, discourse and identity

Reference the ‘Manchester United way’ and it has a different meaning to different people – perhaps a benchmark for free-flowing attack minded football, or a fan’s recollections of an important victory against a fierce rival; perhaps somebody referencing the successful development of Man Utd’s youth into world class talent?
A great attribute of sport – and football in particular – is that it provokes opinion and debate effortlessly. For a club of Manchester United’s stature, any deviation from their own high standards of success amplifies the process of inquiry.

Alpha Males and Autocratic Leadership

The appointment of David Moyes as Manager is increasingly reflected upon as a transition period which didn’t go to plan. The swift and recent appointment of Louis van Gaal as Manchester United’s manager [19th May 2014] takes the club in a different direction again. In some ways Louis van Gaal’s leadership style has parallels with Ferguson’s: strong values; clear standards; absolute authority. In Ferguson’s time those who crossed him, or fell short of Manchester United’s standards, quickly found themselves playing for another club. Louis van Gaal maintains a similar reputation.

The ‘Make or Buy’ dilemma

In his short tenure, Louis van Gall his has spent in the region of £150m bringing in new players. He’s also started the process of shaping his team, which includes the controversial sale of highly rated home grown player Danny Wellbeck to Arsenal for £16m. Are we witnessing the start of a new ‘Manchester United way’ – one where success is bought rather than developed in-house?

The Guardian provided additional commentary on the situation:

Ryan Giggs has denied Manchester United’s recent transfer policy represents a betrayal of Old Trafford traditions, although Nicky Butt, the club’s reserve team manager, admitted promoting homegrown talent must take a back seat under Louis van Gaal.
United have spent £215m on new players over the past 12 months and off loaded the academy graduates Danny Welbeck to Arsenal and Tom Cleverley to Aston Villa on the day Colombia international Radamel Falcao arrived on loan from Monaco .

That turnover prompted Mike Phelan, United’s former assistant manager, to accuse the club of losing their identity, while Eric Harrison, the ex-youth team manager who brought through the famed “Class of 92”, said United were losing “their soul” as a consequence.
There’s a certain paradox and tension between retaining tried and tested methods versus embracing new and different ways of working.

Like any organisation, Manchester United has various metrics to measure its success – trophies remain the currency that most fans prefer to use – but perhaps here is one of the biggest misnomers of football – football is increasingly commercially focused. Sure the fans crave the bragging rights that go with winning, but there are other stakeholders to consider too.


‘Something Special’

Sir Alex had an enviable reputation for developing the potential in players, nurturing youth into world-class talent; examples include: Ryan Giggs, David Beckham, Gary and Phil Neville and Nicky Butt – there are others too. Perhaps aged 63, Louis van Gaal perceives time is not on his side? Perhaps his experience helps him recognize the urgency in returning Manchester United back to be serious challengers for honours? If he doesn’t succeed quickly, perhaps another candidate will be afforded the opportunity?

Manchester United’s various stakeholders – its fans, directors, owners, sponsors – and indeed its closest rivals all expect Manchester Utd to be serious contenders for honours. Few other clubs have history and expectation to deliver success – Louis van Gaal is shaping the future of club which many regard as ‘something special’. How he delivers will be watched with great interest.

UPDATES START HERE

July 14th 2014 

The Adidas shirt deal is worth £750 million over ten years.

September 14th 2014

Manchester United beat Queen’s Park Rangers 4-0 Van Gaal’s team with its costly Galacticos win in style at Old Trafford. Move from 17th to 9th in league table.

September 15th 2014

Disenchanted Ronaldo wants move back to Manchester United.


After Sir Alex: Van Gaal leads out Manchester United for his first game as manager

July 24, 2014

Louis van Gaal
The match [July 23rd, 2014] is a ‘meaningless’ friendly in Los Angeles. Or is it so meaningless?

Louis van Gaal arrives as manager at Manchester United Football Club after managing Holland in the recent World Cup in Brazil. He joins a club suffering a severe dip in performance following the departure of the iconic Sir Alex Ferguson, who is widely credited with the record-breaking successes of the club in recent decades.

Van Gaal’s reputation as a leading manager has been established in a string of successes at the top European clubs. After Sir Alex, his own selected successor and fellow Scot, David Moyes, lasted less than the season, as results declined disastrously.

In the recent World Cup, Van Gaal reinforced his reputation as a tough but creative manager of the Netherlands’ [Holland’s] national side. For example, he came up with an incredible and pre-planned decision to substitute his first choice-goal keeper in extra time to bring on one better able to win the imminent penalty shoot-out.

First impressions at MUFC

Within days of Holland’s departures from the World Cup, their new manager arrives at Manchester United. There followed a few days of intense image management, reinforcing his image as a dominating personality who expects to get his own way on as many matters as possible.

MUFC fans largely approved of this, [call-in messages at the club’s TV station MUTV] as it was a style for which Alex Ferguson was recognized and feared.

The pre-season tour

Within a week, the squad had left for the pre-season tour of North America, van Gaal grumbling about excessive traveling which was a disruption to pre-season preparations. He said such arrangements would not happen again on his watch.

Reconstruction of the club

On van Gaal’s arrival, funds withheld from Moyes were released by the owners and board to strengthen the team. New players were acquired seen as the quality needed to address weaknesses in defense and midfield.

The LA Galaxy game

The first pre-season game was against LA Galaxy, a club with prior connections with MUFC, through the recently-retired David Beckham. The match was switched to the Pasadena Rose-bowl to accommodate the interest it attracted. A near-capacity 86,000 fans watched the game.

The American team, half-way through its season, was expected to be match fit. This did not make much difference in the first half. United, playing a new attacking formation, were lively and effective, scoring three unanswered goals.

The new manager had made it clear he would be assessing all players before completing his summer transfers. At half-time, as agreed for the fixture, large numbers of changes were made in each team. The United squad players brought on were more successful than their Galaxy counterparts,and scored a further four goals unanswered.

Final score: Los Angeles Galaxy 0 Manchester United 7. The Van Gaal managerial regime could hardly have started better.

Leadership reflections

The new manager has a direct – some would say brutal – style which seems designs to overwhelm all opposing views. His history of success with his teams has been accompanied with confrontations with players and with influential figures in clubs he worked in. He wins respect and makes enemies. The style can be found in many business and sporting leaders. In his encounters with the press, the style does have resemblance to that of Sir Alex Ferguson who could be famously (or infamously) combative.

There is something vaguely Machiavellian in the public persona which may be designed to rule through fear rather than being judged weak.


By popular request: what happened to David Moyes?

April 25, 2014

MacBeth wikipediaThe dismissal of David Moyes as Manager of Manchester United in April 2014 was both expected and unexpected.

It was expected

It was expected when media reports [April 21st 2014] announced his imminent departure, days after a Premier League defeat of his team, confirming there would be no European Cup matches next season.

Campaigns for his removal were gaining pace from disgruntled fans through the media. By mid-afternoon, a perfect storm was brewing on Twitter. A few scraps of information were repeatedly retweeted. ‘Moyes sacked. Moyes is about to be sacked. Moyes will be sacked soon/at the weekend/at the of the season.’

It was unexpected

It was unexpected because despite the poor record of the team, Moyes had been appointed as the choice of the departing Manager, the iconic and hugely successful Sir Alex Ferguson. He was understood to have been chosen for the long-term. In an emotional farewell speech to a packed stadium at Old Trafford, Sir Alex urged fans to get behind the newly-chosen one. His own last season had been a triumph of psychology over the aging legs of his team which finished Premier League champions.

Neither expected nor unexpected considerations took account of the preoccupations of the owners of the club, the American entrepreneurs, the Glazers. Their financial model has been widely recognized as involving finance of a creative kind to reduce their entrepreneurial risks When results disappointed, Moyes would have been seen as adding to the riskiness of their investment. Ten months into his long-term contract, he was toast.

‘It were well done quickly ‘

The club confirmed through Twitter the following morning that Moyes had been dismissed. It turned out he had been told the news very early that morning.

The timing was said to have been chosen to meet the requirements of information released to investors on the NY Stock markets.

The hunt for red assassins

I was surprised at the extent of the coverage of the story locally and globally. The early print editions of the British media had given it high visibility on the sports pages, writing as if his immediate dismissal was certain before the official announcement.

The early morning news bulletins followed suit, clearing the way for interviews with assorted pundits and players. When the news broke, the hunt for the assassins began. MacBeth morphed into Julius Caesar.

The poisoned chalice

Someone contacted me suggesting I should write about the poisoned chalice that David Moyes had received. Or hospital pass, I replied, remembering a tweet I received on the topic. Incidentally, the poisoned chalice is mentioned in the soliloquy by MacBeth which begins ‘if it were done when tis done….’

Another colleague wondered whether Moyes had indicated through his body language that he was not convinced that he was up to the job? Maybe, although there is something of a catch 22 around that line of questioning. Any authentic leader would recognize the foolishly high expectations of the fans on match day and as the game was being played. Anyone with super confident body language would likely be deluded or faking it.

The routinization of charisma

I go back to the pronouncement of Sir Alex regarding the appointment of his successor. In leadership terms, the former leader was deploying his emotional credit banked with the fans. It is known as an attempt to achieve the routinization of charisma. Sir Alex had acquired enormous credibility for his near miraculous powers of leadership. Much was attributed to the mystique of his charismatic personality. In practice, dilemmas arise, not least as the fans/followers reflect more rationally over the credibility of the replacement.

This analysis does not investigate the motives behind the appointment of David Moyes. Nor does it reflect on his tactical judgements of team selection and on-field substitutions. I leave the former to speculation by media pundits, and the latter to the larger number of pundits also known as football fans. What does seem to make sense is that the leadership issues at Manchester Unite can hardly be reduced to a simple error of judgement either in the selection of David Moyes, or in his dismissal.

Acknowledgements

To Susan Moger, Paul Haslam, Paul Hinks, Keven Holton, Ewan Leith, who were among colleagues who encouraged me put some ideas down for discussion on this fascinating leadership issue. To Wikipedia for the poster image of MacBeth.

Watch this space for further updates

April 25, 2014

Edward Spalton says:

Probably the best comment on this episode was by Richard North of eureferendum.com. that UKIP should try to recruit Moyes because he got United out of Europe in ten months.


Brian Clough was a better manager than Sir Alex Ferguson says Roy Keane

December 11, 2013

This week [Dec 2013] Roy Keane the combative former Manchester United and Ireland football player turned pundit has responded to remarks about him by his former manager Sir Alex Ferguson

Keane is settling old scores, but is also playing the media as his television programme “best of enemies” is screened.

He is reported as saying that Brian Clough was a far better manager than Sir Alex. New subscribers may like to see an earlier post from LWD, re-posted below. It was entitled Can we learn much from Brain Clough’s leadership style?

The original post

My leadership students this week [sometime in 2010] chose Invictus as a book or film worth studying. Would they have voted for Brian Clough, if they had seen The Damned United, screened by the BBC this week-end?

A case can be made for studying leadership in its widest variety of forms, including the actions of dictators as well as saints. Can we learn more from studying Nelson Mandela, Mother Teresa and Gandhi than from studying Hitler and Stalin? And what about sporting leaders such as Sir Alex Ferguson and Brian Clough?

The Damned United, [released March 18th, 2009], concentrates on one of Clough’s few managerial failures, who after less than two months managing Leeds United Football Club, was fired for a combination of bad results and an abrasive style which extended to the club’s board of directors.

It was rescreened by the BBC [10.30pm, BBC2, Sunday July 18th, 2010].

Brian Clough is fondly regarded nowadays, not because he was ahead of his time but because he was very much of it, despite upsetting football’s authoritarian old guard with his cocky contempt for them. He would never have got away with his genius in today’s world of agents and multimillionaire egos. With copious footage, this documentary traces his rise from a dazzling young centre-forward scythed down in his prime, turned brilliant, self-assured manager, to the ruddy-faced figure he cut in his sad decline.

When the film was first released, Prof Szymanski of CASS Business School told the BBC “It was socialism if you like …You do see this idea in business sometimes. The focus was on the needs of his players. These were his frontline staff – they’re the ones under the pressure, they’re the ones who deliver, so you need to meet their needs whatever it takes. …[however] he was a very overbearing employer, incredibly paternalistic – like Stalin and just as frightening.”

Clough himself never over-analyzed his management technique.
“They tell me people have always wondered how I did it” he once said. I’m told my fellow professionals and public alike have been fascinated and puzzled and intrigued by the Clough managerial methods and technique and would love to know my secret. I’ve got news for them – so would I”

Would Clough make a good business leader? In one of his teasing philosophical dialogues, Plato has Socrates ask a similar question: ‘would a military leader be a good director of a theatrical chorus?’ But in Plato’s account, Socrates was too cute to suggest that there was a simple answer to that question.

Acknowledgement

Image [Brian Clough not Roy Keane] from The Tactician


End of an era as Sir Alex Ferguson retires as Manager of Manchester United

May 8, 2013

Sir Alex FergusonSir Alex Ferguson retires in a relatively smooth fashion. Nevertheless, his departure means an inevitable period of transition for the global club he helped to build. Front-runners are emerging as a successor

The announcement today [May 8th 2013] should not have been surprising. Sir Alex announced his retirement once before, some years ago, and the shock waves around the news prompted a recantation.

Age shall not weary them

I do not need to check his age. He was born of December 31st 1941, making him a few days younger than myself. Our careers took us on very different paths, although over the last two decades I have found myself regularly writing and talking about his leadership style and achievements.

The most bizarre of those efforts was at an event in Miami where I had been asked to compare his achievements with those of Pat Riley, the iconic coach of the Miami Heat basketball team.

What they do teach at Harvard Business School

Much later, Harvard business School invited Sir Alex to talk about his leadership style. My envy was only slightly lessened by the comforting thought that at Manchester, business students had been studying a case through the textbook Dilemmas of Leadership [Edition 1 only : maybe a revised case is possible for Edition 3, if I don’t retire before it comes out].

The Ferguson touch

The story of his exceptional career and robust style is becoming well-known. [Use the right-hand vertical side bar to find the tags to the various LWD posts written since 2006].

A period of mourning

On hearing the news, someone with inside knowledge of the club told me “It’s a period of mourning. I’ve followed them since I was a child. I love the club. For young people, he’s the only manager they remember.” She listed a range of well-known names as possible future managers, including an insider.

The 3Ms

Speculation on succession throws up three early front-runners, David Moyes of Everton, Jose Mourinho of Real Madrid, and Roberto Martinez of Wigan Athletic. One a Scot, one Portuguese, and one Spanish. I would not want to place a bet although I expect there to be a name already close to being announced.

Footnote

Another list of front runners from The Independent

Later, the three names were linked as follows. Moyes replaced Ferguson; Mourinho went to Chelsea, and Martinez replaced Moyes at Everton.