Wenger revisited

Wenger

Wenger’s future revisited – judging Arsenal’s boss by yardsticks that matter

Speculation around the possible firing of Arsenal manager Arsene Wenger has been rife. It prompted my investigation into whether calls for the footballing legend’s professional death were supported by facts. Analysing issues which really matter – Wenger’s priorities and the cost per point earned – closes the  case.

In the past week, Wenger’s critics have thinned still further. Many who were calling for the French polymath’s head are quietly leaving the media stage. As they should. After Monday’s 5-2 thrashing of Reading, Arsenal moved smoothly into fifth on the English Premier League. Given the way the re-constituted team is now clicking, with less than even money available from the bookies, only an inveterate would bet against them finishing the season in one of the critical Top Four spots – positions which ensure participation in next season’s European Champion’s League, sport’s most lucrative competition.

Few dispute that Wenger has been one of the most successful football managers in history. But fuelled by an eight-year trophy drought, speculation of his axing intensified after the team’s below par start to the 2012/13 season. Wenger’s critics were emboldened after Arsenal was knocked out of England’s League Cup – on penalties – at the feet of Bradford City. Much being made of the defeat by a team whose combined wages is less than the earnings of any Arsenal first team regular.

That “shock” result reminded me of a highlight from my youth when our town’s side hosted a friendly against one of the country’s top league clubs. The visitors were led by former England captain Johnny Haynes (then in his late 30s) and spearheaded by a bunch of expelled Hertha Berlin players (who’d been caught fixing matches). The local lads tore into the pros, almost landing a famous victory. What I remember most about the game, though, was how the professionals were, well, professional. No rash tackles. Not an extra drop of sweat. They played well within their capabilities, conscious of keeping healthy so they could fry the much bigger fish that would come later. It was a lot like Arsenal’s performance last week on that icy north of England pitch. Of course the players didn’t want to lose. Then again, there wasn’t much incentive to risk injury for victory. Of four competitions contested this season, the League Cup was the club’s lowest priority. So was the result that big a shock?

It will be a very different Arsenal in mid February when the club takes its place in the European Champions League’s round of 16. This is football’s whale, both in prestige and income. A good run in this competition generates enough cash to pay a hefty chunk of a superclub’s annual wages. Also, prize money and share of broadcasting revenue is progressive, so the further the team goes, the fatter the cheque. The eventual winner’s payday is worth over e50m.

Scanning Arsenal’s 2012 annual report shows how highly the club’s insiders rate participation in this competition. There are numerous references in this detailed document, a legacy of Arsenal’s years as a publicly listed company. Kicking off in the second paragraph of Peter Hill-Wood chairman’s statement where he writes of “great unity and solidity around the Board table….delivering 15 consecutive seasons of Champions League football; a rare achievement and one of which we should all be very proud.” Hill-Wood returned to the topic when concluding by thanking Arsenal’s loyal fans whose support “was an important factor in securing our position in the Champions League.”

No matter what Wenger’s boo-boys write or shout, those who really matter judge Arsenal’s manager by his Champions League record. So while instant pundits and mass market scribblers were attacking Wenger’s “worst start ever”, insiders remained calm. If asked, they pointed to the fact that Arsenal is one of only two English teams still alive in this season’s Champions League (Man U is the other). Ironic, too, that both of the clubs which critics urge Wenger to mirror – big spending Manchester City and Chelsea – are out of the running.

Wenger preaches a philosophy that like any other business, a football club must be founded on a sustainable financial base. He believes in Micawber-like simplicity where income must exceed expenditure. In this approach Wenger enjoys the full support of the Arsenal directorate. Including, most importantly, its controlling shareholder Stanley Kroenke.

But that’s only part of why Wenger’s position at Arsenal was actually never under threat.

To extend the business analogy, logical minds appreciate that the critical measure of every managerial performance is resource allocation. For football managers, that means how well they play cards they’ve been dealt. Among England’s elite clubs, that boils down to a simple measure: the cost, in terms of wages spent, of each Premier League point.

Deloitte’s Sports Business Group, which probably knows the business side of football better than anyone, produces a yearly review after analysing the financial statements of all the English league clubs. Its data includes each club’s total wage bill. Because annual reports take time to produce, Deloitte’s latest numbers refer to the 2010/11 season.

Interestingly, Arsenal is one of only nine English clubs to enjoy unbroken Premier League status over the past decade. Fulham, owned by former Harrods proprietor Mohamed Al-Fayed, is the surprise package. It has remained among the elite despite a relatively small home ground and a parsimonious wage bill. Its frugality was bettered only by Everton, illustrating why the blue side of Liverpool idolizes the club’s manager David Moyes. At the other end of the scale is Aston Villa, which has spent almost as much per point as the most extravagant clubs, but without earning any of the trophies many fans regard as the measure of success.

WAGE BILL (COMPOUND ANNUAL GROWTH RATE)
2002 TO 2011
Manchester City 19.5%
Chelsea 15.0%
Aston Villa 11.2%
Liverpool 10.7%
Tottenham Hotspur 10.2%
Arsenal 8.2%
Everton 7.6%
Manchester United 7.5%
Fulham 5.4%

But to really judge Wenger’s Arsenal, one needs to restrict the comparison to other members of England’s Big Six. And it is here that bandoliers of ammunition are available to blast the Frenchman’s critics. In every year since 2002, Wenger has delivered more points per pound of wages than has Chelsea. In six of the nine years it has bettered Man U (one other year they were equal). Arsenal also has a three-from-three record against Man City since the Abu Dhabi connection started pouring in cash.

Wage cost (in £m) for each point earned in the English Premier League (by season)
2010/11 2009/10 2008/9 2007/8 2006/7 2005/6 2004/5 2003/4 2002/3
Chelsea 2.7 2.0 2.0 2.0 1.6 1.3 1.1 1.5 0.8
Manchester United 2.6 1.6 1.4 1.4 1.0 1.0 1.0 1.0 1.0
Aston Villa 2.5 1.3 1.1 0.8 0.9 0.9 0.7 0.6 0.7
Manchester City 2.5 2.0 1.7 1.0 0.9 0.8 0.7 0.9 0.7
Tottenham  1.9 1.0 1.2 1.2 0.7 0.6 0.6 0.8 0.8
Arsenal 1.8 1.5 1.4 1.2 1.3 1.2 0.8 0.8 0.8
Liverpool 1.7 1.9 1.2 1.2 1.1 0.8 1.1 1.1 0.9
Fulham 1.3 1.1 0.9 1.1 0.9 0.6 0.8 0.6 0.8
Everton 1.2 0.9 0.8 0.7 0.7 0.7 0.5 0.8 0.5

Presumably this comparison, and Arsenal’s improving results (just as Wenger had promised) dismisses the emotive case presented by the critics.

But how does the philosophical Wenger himself view all this speculation? There’s a lovely quote on the official UEFA website where the man himself says it best.

Asked how he felt about Arsenal’s qualification for the competition’s last 16, Wenger said: “It is a massive satisfaction because I have my back to the wall so many times, accused of not spending fortunes. To show that we can do it, the way we do it, with the club in a good financial situation and with players coming through our youth development, I think it is important for the game as well. There are many different ways to be successful and I am very happy that our way is one of them.”

It’s sustainable too. Which is a lot more than what one can say about the big spending blue clubs. A factor which will become increasingly apparent when the Financial Fair Play regulations begin to influence club management from 2014.

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