plc - The business of football
Responsible Business Management
Preston North End
The situation with players wages has only arisen because clubs forgetting football is a sport not a business. As a football club, you don't need to make profits just avoid sustained losses. But as chairman of football businesses, they tend to have their feet firmly in the City, believing in its philosophies such as 'the market will regulate itself naturally' quoted from Southampton chairman, Rupert Lowe.
Preston North End
However there are signs of change in the game, and some clubs such as Preston North End, are starting to realise the benefits of running clubs responsibly. In 1994, Preston was brought by the Baxi Partnership - a major employer in Preston and the country's largest employee owned manufacturing company - who 'wanted to put something back into the community'.
The 40% Baxi ownership and large supporter shareholding help preserve the ethos of the football club, which is to serve its supporters, to build and be successful.
Bryan Gray, Chairman of Preston North End and Baxi Chief-Executive
Although this is the usual spiel given by companies looking to take over clubs, this time it was generally meant. Not that the club is run as a charity - it is run to make a profit, but for a purpose - for the club. The club was floated on the Alternative Investment Market, but not for Baxi to cash in on its shares, but to raise money for the club.
Gray believes that good design is integral to a football club's sense of itself and projection to the community:
Even people in the city who don't like football are proud of the stadium as a well designed piece of Preston architecture - the club has immense good will in the city.
This belief extends to the clubs merchandise. It's store was crafted by its merchandising manager Steve White, a designer and a lifelong North End fan. The store stocks kit designed by White and manufactured by the club itself. White also brought in a range of clothes and leisure wear, branded with a discreet 'PNE' logo. Bryan Gray:
Every professional football club has a fund of loyalty in its town. If the club produces merchandise which is well designed and good value, people will be glad to be associated with it... these really are not difficult ideas. They're absolutely basic to any good businessman.
FC/plc: Football Vs Business
A small text I created to aid research and for use in my Final Major Project in Year 3 of my degree programme. Written May 2002.
FC - Football Becomes Big Business
plc - The Business of Football
Conclusion
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- The Football Business
- David Conn