Skip to main content

Should one spend on the stadium or players?

Plymouth chairman Simon Hallett has said investing in a £5m redevelopment of the grandstand at Home Park was the right choice for the club's long-term future. The US-based businessman and his wife Jane put up the cash to support the redevelopment and refurbishment at the stadium.

He said, 'The substantial commitment that my wife Jane and I were prepared to make was only investment in assets that would support Argyle over many seasons, not just through the life of a few player contracts. He added, 'The Board has been very clear, for a number of years, that we want Argyle to be financially sustainable, in the absence of owners who are prepared to fund deficits year after year.' He made his comments in his Boardroom Blog, a good way of communicating with fans, particularly for a chairman who is across the pond: Chairman's chat

Argyle are at risk of relegation from League One, depending on the outcome of their game against Scunthorpe at Home Park next Saturday. In my view, they should be able to do it. I hope so, because of the good work they do on the remote Isles of Scilly.

But is Hallett right in more general terms? It's a real dilemma. You can spend a lot of money on players and they can get injured; turn out not to be as good as advertised by their agent; or fail to fit in with the squad. But you need success on the pitch to fill a stadium. The Pilgrims do have a geographical advantage there given the absence of competition in the vicinity.

Comments

  1. I was expecting some useful insight into the 'football economy'. Very disappointing. Added nothing to the discussion.

    ReplyDelete
  2. How one should divide money up between investment in capital assets (which may not be fully utilised) and players (who may turn out to be wasting asset) seems to me to be a central dilemma for clubs and the answer depends in part on the circumstances and potential of the particular club.

    ReplyDelete

Post a Comment

Popular posts from this blog

It's no deal say Spurs insiders over Taiwanese takeover

Senior figures at Tottenham Hotspur insisted on Friday that they had not been informed of any deal to sell Daniel Levy’s stake in the club. A business group, Eight Sports Capital — which is said to include a billionaire Taiwanese financier — claimed that it had an agreement in place to buy a 24.99 per cent stake in ENIC, the club’s majority owners, from Levy, who owns 29.88 per cent. The Times has been told Ng Wing Fai and Brooklyn Earick form part of the group, having both been linked previously to potential takeovers of the Premier League club. The Taiwanese businessman, Richard Tsai, is also said to be part of the consortium. He is reportedly worth £7 billion.  Last year Earick, the former DJ and tech entrepreneur, was part of an attempted £4.5 billion takeover, which was “unequivocally rejected” by Spurs.  An ENIC spokesperson said: “We can confirm that neither ENIC nor THFC are aware of any sale by Daniel Levy’s Family Trust of its minority stake in ENIC, THFC’...

Reports about Charlton sale exaggerated

Reports have appeared in The Guardian and elsewhere that Charlton has been put up for sale. Richard Cawley is an authoritative local journalist who runs a South London Sport substack site.  He reached out to the club yesterday evening to ask for comment on The Guardian’s article. Early indications from the club have been that nothing has changed since the story about them seeking investment, except that it is now a different company doing it. Charlton have since managed to consolidate their place in the Championship, avoiding an instant return to League One, with their women’s side promoted to the WSL, returning to the top flight for the first time since 2007, although staying there is likely to be costly. It would be counter-intuitive for owners Global Football Partners not to progress the club when looking for investment, that the focus remains on driving it forward, that their spend this summer is in line with long-term planning and will see an increase in wages spent on players...

Hull City's 'strange' loan

When football finance guru Kieran Maguire seems flashing lights in a club's loan deal, I become concerned.  He is the leading football finance expert in the UK. Hull City have borrowed £55m against their stadium and training ground yet they should get £30m from the Premier League before long.  What is going on? https://www.bbc.co.uk/sport/football/articles/cpwel48y51do