Manchester City's global strategy is the right idea (see link below), it's just the execution is flawed.... well, unless you have bottomless pockets!
Reinvestment in the player roster is key to continued success and without injections of capital, requires club's turning a profit (at least over the medium term). To achieve year on year profits, clubs must focus on:
Manchester City's global strategy specifically addresses two of these: it allows them to grow their fan base which leads to increased revenues, and it provides an opportunity to reduce wage and transfer costs (any FFP issues aside).
The problem for other clubs wishing to follow Manchester City's model is the £1B they have spent since the new owners took control in 2008, including 5 consecutive years of very large financial losses. Most other clubs simply do not have the financial resources to spend at that level.
The answer for clubs wanting to gain the financial benefits of a global model are to focus on the quantitative drivers noted earlier and to add qualitative drivers such as team culture, youth feeder systems, game day entertainment and deeper relationships with fans. The intersection of these quantitative and qualitative drivers provides the roadmap to success.
http://www.telegraph.co.uk/finance/newsbysector/industry/11065644/Manchester-City-FC-have-plans-for-global-brand-domination.html
Reinvestment in the player roster is key to continued success and without injections of capital, requires club's turning a profit (at least over the medium term). To achieve year on year profits, clubs must focus on:
- increasing revenues;...
- increasing stadium utilisation; and
- decreasing wages as a percentage of revenue.
Manchester City's global strategy specifically addresses two of these: it allows them to grow their fan base which leads to increased revenues, and it provides an opportunity to reduce wage and transfer costs (any FFP issues aside).
The problem for other clubs wishing to follow Manchester City's model is the £1B they have spent since the new owners took control in 2008, including 5 consecutive years of very large financial losses. Most other clubs simply do not have the financial resources to spend at that level.
The answer for clubs wanting to gain the financial benefits of a global model are to focus on the quantitative drivers noted earlier and to add qualitative drivers such as team culture, youth feeder systems, game day entertainment and deeper relationships with fans. The intersection of these quantitative and qualitative drivers provides the roadmap to success.
http://www.telegraph.co.uk/finance/newsbysector/industry/11065644/Manchester-City-FC-have-plans-for-global-brand-domination.html
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