Spend Big, Win Big?
With the summer drawing to a close and the new football season beckoning, many managers are busy looking at ways to strengthen their teams for the coming season. This is not only relevant in a footballing sense but also in every workplace around the country. Many managers though are limited with their budgets, not all companies have massive budgets like Manchester City’s, so when investing in new talent it’s important to make sure that your investment pays a dividend and is as effective as possible.
For instance, if Bale goes to Madrid, will this investment pay a guaranteed dividend? If Ronaldo went back to United, would this ensure they win the Premiership? It’s tough to say as both Barcelona and Manchester City are also strengthening, so even if you do strengthen and invest you can never guarantee success, as your competitors may be investing more or could be investing more intelligently.
The smartest strategy is to invest as wisely as is possible by strengthening the areas of the team which not only are the weakest but also where the investment can be returned. For example bringing in a Procurement Manager who may cost €100K in salary is good business sense if that individual is making savings of €500K annually. Likewise bringing in that star sales person who also makes double their base in commission is also well worth it when they can only do this by bringing in significant new business and achieving the key targets and results expected.
Sometimes a new player is all about taking that risk and taking that gamble, but making sure you safeguard that gamble as best you can, this can be done firstly by putting in the time and effort to ensure you are getting the best quality individuals out there. And secondly a smart employer will protect themselves and motivate their new team member by linking their remuneration to performance driven targets. This can be goals scored, points won or trophies lifted. Equally it may be in savings made, inventory reduced or new products developed.
The Premiership has plenty of examples of transfers that went either very right or very wrong, some that stand out for the right reasons are transfers such as Henry’s transfer in 99’ from Juve to Arsenal for £10.5million and Ronaldo going to United from Sporting Lisbon for £12million in 2003. These stand out as great bits of business and were worth their initial investment 10 times over. Some transfers don't go so well, two that really stand out were Andy Carroll’s deadline day move from Newcastle to Liverpool for £35million and Shevchenko’s move to Chelsea from Milan in 06’. It's fair to say that investing heavily is not always guaranteed to work out as you might have expected.
Sometimes you just need to take that chance and invest because if you don’t, your competitors will. It may not always work out but when it does, it definitely pays off! Robin Van Persie’s transfer from Arsenal to Manchester United last season fortifies this point, without Van Persie’s goals last season would United have won the Premiership? Very doubtful! And how much is a Premiership title and all that comes with it these days worth? In one season that’s an immediate return on the £24 million investment already and you can bet there’s a lot more to come.
Image of Ronaldo courtsey of www.dailymail.co.uk