Back in 1992, who would have envisaged that £10-50 million would be what a football player was worth? And that a salary of a footballer would rival our top minds and be vastly more than honourable in this country? That being said, it is what it is.
Chairmen, football teams, and players, since have come and gone in vast amounts. Now the topic all real football fans care to delve into is the debt. There’s debt all across the world; some didn’t invest heavily into stocks and shares until the time was right, and had enough assets to keep a certain amount of wealth within its means. The same will happen in football. I firmly believe that riding the tide but keeping your head well above water in the next few years is extremely important. Knowing family members and family friends at the top end of their own business, the ‘saving for a rainy day’ policy is integral to deal with any circumstances that arise. As we all know, there’s major circumstances other teams are having to deal with. Look three miles down the road.
What does every business need? The tools, the assets, the infrastructure. Football teams in general are different to other businesses granted, but the basics are important.
In recent years we’ve seen a lot of business go through the Premier League – Liverpool for example. Last season they didn’t manage to clinch a European spot for the first time in years, the new owner has taken the risk, the gamble in investing a lot not only into signings but more wages. Here are some figures:
TOP PREMIER LEAGUE WAGE BILLS 2009-10
Chelsea – £174m (£167m)
Man City – £133m (£83m)
Man Utd – £132m (£123m)
Liverpool – £121m (£107m)
Arsenal – £111m (£104m)
In brackets was previous amounts, the other being estimated amount. Aston Villa’s wage bill stood in between £70-£80 million. This is a staggering amount for a team that’s not in Europe. Some might say ‘all the more reason to invest so we can be a part of the elite.’ To me, that makes no sense because Aston Villa is a business as well as an institution. We’ve seen English car companies do the same in the past 40-50 years and we’re left with only a few. My point being: making sure you are making a net profit, you are always able to invest brick by brick.
With FIFA’s new financial fair play regulation coming through next, I think this is the only way forward until we break into Europe. I think everybody has to look at the future of the football club and not look for quick fix answers which are what a lot of the premier league does to no avail.
Let’s look at the infrastructure of Aston Villa. We have an amazing training ground and academy facilities, and is one of the best in the country to get the best out of the players, currently one of, if not the, best youth in the country. We have a great, big stadium that can get a lot of revenue. As a football club we have a lot in place where it looks positive.
Our first team has been slashed since the end of the season, we’ve lost a few players who have been major to us for the last few seasons but something we haven’t had in years upon years we finally have – a goal scorer, and a vast amount of ‘youth’ coming through that need their time on the big stage to prove how good how good they – and our academy – are, as well as a few players that’s will hopefully be like new signings to us. Looking over the fence at other team’s mentality and constant fear we’ll be outdone is something I can’t stand. ‘Proven’ players were once youth and got their chance, we have at least five we can all name straight away that we want to see.
Now a lot has been said about the chairman, and I agree that his interest should be questioned, but since his takeover he has made profits go up £50 million, the only thing letting us down was the ridiculous wage bill, and pay offs in compensation. Since 2006 stands at £333 million. In the coming years when certain teams are breaking their necks to get into Europe but cant when because they can’t balance the books, assuming UEFA have the guts to enforce it that is, we’ll be able to pick threw the bones and find gold!
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