THE CASE

Raphael Chicheportiche

Draw a graph describing the relationship

between clubs’ performance points and its

revenues. Use data from tables 6.2 and 6.5.

What is your conclusion?

Question 1:

Real M

adrid

Manch

este

r Utd

Barce

lona

Bayer

n Mun

ich

Chelsea

Arsen

al

Liver

pool

AC Mila

n

Roma

Inte

rnaz

iona

le0

200

400

600

800

1000

1200

1400

1600

PointsRevenues

THE RELATIONSHIP OF CLUBS’ PERFORMANCEPOINTS AND ITS REVENUES:

There is a relationship that exists between club’s performance and revenues . However this relationship is not always exact because

performance depends on other variables than revenues.

THE RELATIONSHIP OF CLUBS’ PERFORMANCEPOINTS AND ITS REVENUES:

Build a table showing the relationship between player quality and team performance

(table 6.7) What is your conclusion?

THE RELATIONSHIP BETWEEN PLAYER QUALITY AND TEAM PERFORMANCE:

TEAM PLAYER PLAYER RANK TEAM PERFORMANCE

Barcelona

Lionel Messi 2

200Xavi 5

Samuel Eto'o 7Andres Iniesta 9Deco 23

Manchester United Cristiano Ronaldo 1 192.2

Real MadridIker Casillas 8

183Ruud Van Nistelrooy 19

Bayern Munich Franck Ribery 18 179.5

Milan Kaka 4 169

LiverpoolFernando Torres 3

162.5Steven Gerrard 6

ArsenalCesc Fabregas 15

162Emmanuel Adebayor 17

Valencia David Villa 10 155.5

Chelsea

Frank Lampard 12

144.5Didier Drogba 13

Michael Ballack 14

John terry 21

Internazionale Zlatan Ibrahimovic 16 142

Juventus Gianluigi Buffon 22 115.5

• Generally, there is a relationship between players quality and team performance (Barcelona, MU,

Juventus)

• Some exceptions show the opposite (Liverpool, Milan)

THE RELATIONSHIP BETWEEN PLAYER QUALITY AND TEAM PERFORMANCE:

How strong is the relationship between net expenditure on players and team performance?

RELATIONSHIP BETWEEN NET EXPENDITURE ON PLAYERS AND TEAM PERFORMANCE:

ClubClubs Performance

pointsNet Expenditure on

player (£M)

Barcelona 200 249Manchester Utd 192.5 100Real Madrid 183 438Bayern Munich 179.5 122AC Milan 169 (-)66Liverpool 162.5 157Arsenal 162 22Valencia 155.5 98Chelsea 144.5 430Internazionale 142 140Porto 140 (-)173Lyon 139 18PSV 124.5 (-)10Roma 123 75Juventius 115.5 68

List the resources of all types which a football (soccer) club needs for survival in European premier league. Describe each resource in

ONE SENTENCE in the notes area

TANGIBLE RESOURCES:

Physical resources:• Stadiums

FOOTBALL CLUB’S RESOURCES:

Financial resources:

• Investors, lenders• Match days revenues• Broadcasting• Sponsorship, commercial revenues

Reputation & Culture

• Brand awareness• Fans

Human• The coach• The players

INTANGIBLE RESOURCES:

FOOTBALL CLUB’S RESOURCES:

List the capabilities needed (on the field and off it) by professional soccer clubs in the European

premier league. Describe each capability in ONE SENTENCE in the notes area

HUMAN RESSOURCES

COACHING, MANAGEMENT

ORGANIZATION

FOOTBALL CLUB’S CAPABILITIES

ADMINISTRATIVE/ ACQUISITION

COMMERCIAL/MARKETING

USES FANS RESSOURCES TO IMPROVE TEAM MOTIVATION AND PERFORMANCES

FOOTBALL CLUB’S CAPABILITIES

Grade the qualities of Manchester United’s resources and capabilities according to the

methodology of slide 25 in the Chapters 5&6 presentation. Explain your grades.

Rela

tive S

treng

th

Strategic Importance

Superfluous Strengths- Key Strengths

Zone of Irrelevance Key Weaknesses

1

1

5 10

5

10

R1

R2R3

R4

R5

C1

C2

C3 C4

C5C6

Appraising VW’s Resources and Capabilities:

R6

R8

Build a map of relative strength vs. strategic importance of Manchester United’s

resources and capabilities.

Resources

Importance

VW’s Relative Strength

Finance 6 4

Technology

7 5

Plant andequipment

8 8

Location 7 4

Distribution

8 5

CAPABILITIES Importance

VW’s Relative Strength

Product development

9 4

Purchasing 7 5

Engineering 7 9

Manufacturing 8 7

Financial management

6 3

R&D 6 4

Marketing & sales 9 4

Government relations

4 8

Ferguson’s Resources and Capabilities:

Grading of Manchester United’s Resources and capabilities

Which resources and capabilities, out of the ones cited above, are attributed to

Sir Alex Ferguson? Express youranswer in a table showing the

relative strength and the strategic importance of each resource and capability.

What is your conclusion in terms of the difficulty entailed in finding a replacement

for Fergusson ?

To Conclude:

According to the table:• Most attribution is directed at Ferguson• His capacity to make a real 'turnover' in

the team spirit• To identify new potential• Training the team strictly• Give motivation to his players • The concept of ‘us’ and not ‘me’ in the

team

After Ferguson took place as a coach in MU, the team saw 11 years of:• Winning• Great amount of revenues• MU became and internationally known

brand• A formed team admired by millions of fans