Looking at Liverpool: A macro perspective of our current plight

Re-evaluation and revision have been the anecdotally symbolic and over-arching philosophies that have been bandied about by the Liverpool FC management hierarchy over the past two years.

Much of this has been only to serve as a correction; not for the inherited ‘state of affairs’ but actually as rectification of their own incoherent strategies, such as the doomed ‘moneyball’ experiment instigated by the departed Damien Comolli.

One can reluctantly forgive the ‘Sports Management Experts’ that come in the guise of FSG as an aberration caused by naivety in coming into a sports arena where they lacked any experience or familiarity. Cynically, due to the commercial plight of LFC at the time it doesn’t seem as the loyal fans had much choice in this anyway.

As the ‘Hicks-Gillett’ Era drew to an acrimonious close with large multinational banks threatening to ‘call in their debts’ and small pockets of LFC fans attempting in vain to try and buy-out the club – there were not many viable potential suitors anyway.

Fast forward to 2013 – the club having undergone further revision in drastic reductions to the wage bill structure and the outing of the ‘deadwood’ in the first team squad. It perhaps is a pertinent time to reflect not on the ‘water that has gone under the bridge’ but what the condition of the ‘bridge’ actually is.

The two key questions in any business field, only enhanced in the performance related industry that is football and its intrinsic nature – ‘the dreaded league table’ is where LFC are now in relation to its neighbours and secondly, more importantly, what can it do to ensure it can rekindle hopes of rising to the summit of English football.

The answer to the first part can be relatively succinct: nowhere in sight. The longest protracted development of a stadium worthy of the historic appeal of the club has gone from bad to worse since the early ‘noughties’. Incidentally in that time the UK has seen a Commonwealth stadium built, a Welsh National stadium, a new Wembley, an Olympic Stadium built and dismantled, and countless stadia around the world.

This only goes to highlight the commercial malpractice of those at the helm of LFC over the past decade at least. With revenues at all -time highs LFC Commercial were short-sighted at best and completely devoid of any competence at worst in not placing ‘stadium development’ as key battleground for ensuring the steady rise of the clubs value in line with its English and European counterparts.

It could be argued this lack of infrastructure investment on the part of the custodians of Liverpool was a major factor in the continuing disparity in the asset value of the club and continued disparity in their worth compared to their competitors.
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Now in a time of austerity, the FSG model for re-development of Anfield is a sound one as both commercially and from a nostalgic point of view. They have previous, when they similarly maintained Boston Red Sox’s old Fenway Park’s charm and opted for re-development as oppose to their arch rivals Ney York Yankees strategy of building a shiny new facility.

Yet one feels a chance has gone begging. Compounding the problem has been the lack of potential suitors, scared off by the prospect of such large amounts of investment in the potential stadia and the continued lack of match day revenues year on year on year. What does irk the best of us is there are fans who have been on season long waiting lists longer than Fergie was at the helm of united! Beat that for business planning!

Now as a mid-table player in the Euro money leagues, Liverpool are plying a strategy more suited to the likes of the Eredivisie leaders Ajax, buying young talent and bringing in top class youth coaching to build a more robust system within the club based around the development of talent.

Although this is a noble endeavour in a climate where the EPL is coated with Super clubs or ‘Sugar daddies’, again one looks at a time of missed opportunity where the Reds could have coupled this strategy with ongoing commercial strength had it played its cards right. In an era where other Euro clubs are, such as the Spanish duo, or for all extents and purposes were state-sponsored are now bigger and stronger than ever before and have tapped into global commercial markets on the back of this. The future is certainly very difficult at best.

What LFC need to do is continue to tap in to their global commercial possibilities outlined by the hugely successful tour in Asia and realise their margin for error going forward is not very much. Any more dwindling on field success will directly impact their ongoing popularity and thereby ensure continued dwindling commercial success. It’s almost the ‘last chance saloon’ for our American friends.

Needless to say the reluctant local populous who form the bedrock of the club and created the atmosphere at Anfield that catapulted LFC into a global phenomenon must understand the commercial realities and trying to hold on to a past model will not bring them any virtue or gain. However, reciprocally and ironically without their seat at the helm of the table LFC will also not be able to continue its unique global appeal either.

Marquee signings, a wage bill higher than the Boston Red Sox, contractors with hard hats on busy at work in the Anfield area are all mandatory requirements to begin with. An even stronger commercial division full of middle managers actively seeking commercial opportunity, re-development of Anfield surrounding areas in conjunction with a compliant council and scouting networks from Bognor to Brazil need to continue at a pace.

Only this hard working strategic thinking will take us from drowning to treading water to swimming freestyle and once again return this sleeping giant to a perch it wholly deserves.
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