Archive for tag: Football Finance.

The so-called “Arsenal model”.

June 25th, 2009 | 33 Comments |

No, not that sort of Arsenal model!
No, not that sort of model!
As I was sat at my breakfasting table this morning, fending off a dog and two cats who had designs on my bacon sandwich, my thoughts turned to the subject of models. Not the size zeros that act as clothes pegs on the catwalk though – I’m talking about football club models.

In Mike Ashley’s statement following the Keegan departure, he tried to defend what he called his ‘Arsenal Model’ for the club but, as the last bit of my bacon sandwich disappeared into a grateful dog, I realised I was a bit bemused by what the Arsenal Model actually is.

In terms of finances, I can only see two models for a football club. Either you look to make a profit (or at least break-even) or you have an owner with deep pockets who doesn’t mind funding things at a loss. If you’re going to try and make a profit then it makes sense to look for young up and coming players you can get at a decent price who either give you good value for money as your future stars or you sell them on at a profit. There are ‘in between’ scenarios where for example you might borrow some money against future success but ultimately you either make a profit or have a rich owner who doesn’t care. I am not sure how clubs like Liverpool, who reputedly owe many millions, are going to achieve financial balance. (more…)