28 March 2013

Arsenal to Spend Less if They Miss Champions League - But Why


As we all know, Arsenal is battling for their Champion League lives as they are currently
5th in the Premier League. While there is still time and hope that the club qualifies
for the League next year, the team is making plans in the event that the team does not.
However, those plans seem somewhat counterproductive to me.

For those that may not follow the business side of the club, Arsene Wenger has been
approved by the Arsenal board to spend £70 Million of the club's sponsorship money
to strengthen the team, including money from the deal that made Betsson the Arsenal's
official betting partner. That amount will be spent with the condition that Arsenal
qualifies for the league. However, if they miss out on qualification, that amount will be
less.

The question we must ask is why? Why give Arsene less money if they miss out on the
Champions League? Some of you will naturally say that the team should not spend the
extra money when the chances of winning trophies are reduced, and while that is a valid
point, that is a very short-term view.

If you look at other teams in the EPL and at other major sports, teams have to spend
money in order to improve their team. Reducing spending sends out one signal to fans
and the other teams in the league. That message is that the team does not think that they
are capable of winning trophies.

Is that the message that Arsenal intends to send? Obviously not, but reducing your
spending just because you do not make the Champions League makes one question
your resolve to get back to the League. If the club does not make it, spend the money
to strengthen the club and make a run at the EPL title for next year. A legit run would
surely land us in the top four regardless of whether the trophy was won and the team
would be back on track. You need to spend money to make money, or in this case win
trophies.