Sustainability

The Fifa fair play rules coming into play at the next 2 seasons, we can expect outrageous amounts of money to be spent by Europe’s elite over the next 2  summer transfer windows. In England we already see inflated values for English footballers because they are rare commodity. Home grown talent are well sought after products. The football world has gone mad. Players are far too expensive, clubs constantly run in debt and players financial demands are just too unrealistic. It is scary when you consider the future of the sport.

Under the financial fair play concept and the regulations, clubs will be encouraged to operate on the basis of their own revenues and not spend more than their income. Clubs should also settle their liabilities with players, authorities and other clubs in a punctual manner. In addition, they will have to provide information about future financial planning.

Sustainability and grass root development is the only real way to maintain financial success. Of course winning on the pitch is also extremely important when you consider a long term future and the growing fan bases that are needed. Clubs would then have to develop their own marketable stars, or look for “bargain buys” to remain financially competitive. Javier “chicharito’ Hernandez is the best example of a “bargain buy” that I can think of. The player cost 7million. He is 22, has an extremely bright future, and is a marketable commodity that will sell shirts. Of course, nothing beats making a 67 million Euro profit on a player (Cristiano Ronaldo) and still winning trophies though. Man United and Arsenal share very similar football philosophies. One is just more effective than the other.

Arsenal and Man United’s “business models” will have to be the way forward for clubs to be sustainable in the future. But bringing through young players is not enough. Those players have to bring success to the club, that’s why Arsenal’s “we don’t spend money” policy has failed them. Spending is necessary when players are needed in certain positions.

That brings me to the importance of a quality scouting network.  We have seen fantastic signings from Man United, Arsenal and even Wigan over the years where a good scouting network has saved the clubs a lot of money and in the case of clubs like Everton and Aston Villa, made a lot of money selling their stars to Champions League teams.

Man United and Arsenal’s squad is littered with home grown talent. So are clubs like Stoke, Liverpool, Aston Villa, Everton to name a few. But what is to happen over the next year for big clubs like Chelsea, Spurs and Man City  to avoid penalties going into the 2013/14 season? Surely a club like Man City, who hardly have a large enough international following to have the expenses they do will struggle to close the gap and be self sufficient. Chelsea and Spurs are in the same boat. How do they maintain a title challenge while become

The premier League now has 6 teams that feel that they could or should be challenging for the title. Money has to be spent to close the gap on Man United. But will the expenditure lead to a club like Spurs ending up like Leeds in an attempt to compete?

One thing is for sure, if clubs are going to spend big on players and on development, it will be in the next 2 seasons to secure a long term vision for the club.

Sustainability and youth development should be high on the premier league club’s agendas, and home grown talent should be just as important as winning trophies when you consider the future of your club, and the sport.

Fletch