Arsenal shareholder Elisha Usmanov has hit out at the board for taking money out of the club rather than reinvesting into building a winning team. As many of you will know Arsenal are without a trophy since 2005 when they won the FA Cup in Cardiff. So that’s over 3,000,000 minutes ago, or over 190,000,000 seconds ago: as you can probably tell there are no Arsenal supporters at Team Tactics!
It’s worth noting first of all that as far as business models go in the Premier League, Arsenal are arguably the best. Their self declared ’self-sustaining’ business model means they don’t spend what they don’t earn, which is to be applauded given the antics of Chelsea and Manchester City who spend well above what they earn. Deloitte’s study recently highlighted Man City spent 107% of their revenue on wages, alarming given the impending UEFA fair play financial rules. However upon closer examination of the Arsenal board you’ll find that whilst the club has made great profits financially, they’ve invested very little into the team itself and that whilst many shareholders have made millions buying and selling their shares, they’ve put no money into the club itself. Millions were made by board members selling to Stan Kroenke which is great in terms of attracting investors. However whilst the personal fortunes of the Arsenal board members rise, the fortunes of their supporters are seemingly in reverse. Arsenal is the most expensive club in the world to follow with ticket prices higher than any other club. Whilst their wage and transfer spend is very low in comparison to some of their rivals.
Back to the point anyhow, Usmanov believes that the lack of success is a direct result of the board’s unwillingness to put money back into the club in order to sign top players and retain their current stars. Arsenal have always had a tight wage budget and are stubborn in refusing to pay their top players a wage other clubs would easily exceed. Arsenal may be on the verge of losing French international Samir Nasri to rivals Manchester United due to this, although of course other factors come into the equation. Fabregas has voiced concerns in the past at the clubs unwillingness to sign ‘colonels’ such as Patrick Viera, who’ll run the midfield as opposed to youngsters (although it must be said Wilshere is progressing nicely). Usmanov and Fabregas highlight the need for companies to reinvest into the company’s team, improving the balance in terms of abilities and strengths: Arsenal is lacking a midfielder who can physically dominate whilst still possessing the technical qualities necessary to play in the style Arsenal are famed for. We’ve a range of London team building events designed to identify the strengths and weaknesses in teams and find areas for improvement. It’s also apparent from Fabregas’s displeasure that a lack of investment into your team can impact upon employee motivation to the point where they become disillusioned with their owners.
As 21st century businesses compete globally it is essential they recognise the value of a cohesive, functioning team. Modern day business methods are too advanced and sophisticated to allow us to believe that grouping a set of individuals together will allow them to work together successfully. Every manager knows that the workplace has advanced beyond the Fordist production line method of the 20th century, but many fail to realise the steps required to move beyond this. Teams must be more than a set of individuals working in a shared environment, they must be working as a collective group working towards shared goals. Team building events can help reinforce this sense of collectivism, whilst communicating your company’s values and objectives. We love working with our clients to go the extra mile and providing corporate events that are tailored towards your needs so contact us today to discuss a range of options available for you to invest into your team!