Arsenal’s business model/Emirates Cash Machine

From Larry :unsustainable business model?

The problem with Arsenal is the same problem that many corporations in the US, and I suspect around the world, will ultimately pay the price for.

It’s a relatively recent policy that corporations have adopted:  Cater to the shareholders, and not the customers.  At all costs.

Relationships with customers take time to develop.

In some industries in can take decades to truly win over a customer with an excellent product, great service, and a genuine concern for the customer’s needs.

Shareholders care only about the next quarter.

So corporations squeeze out as much profit as they can, quickly.  Long-term relationships with the consumer suffer.  The customer can feel this, and over time realizes that they are no longer a priority.

Eventually, the short-sightedness of the shareholder-centric attitude is exposed.  The long-term strategies that prepare a business for future capital have been forsaken.  The quick profits are unsustainable.  But it’s fine because the management that is responsible can now move on to another company and bleed its resources for quick profit, and so on.

And so it is with Arsenal.  The board and the shareholders are happy, but for how long?  But the most dedicated fans will eventually stop coming to games, and stop buying shirts.

That’s when Arsene will leave the club.

What top quality manager will want to come to the club then?  What top quality players will want to come to the club then?

And who will be the new customers in the seats at the Emirates?

Myles says:

Way back in 2006, on March 12th,   I wrote 800 words under the headline Emirates Stadium has that Wow! factor.

At the end of that piece, I got something right.