Arsenal FC has never really learnt, understood, appreciated and valued the value of value creation. This is why this club is on a downward trajectory and has always been on a downward trajectory over the years hence its current crisis and downturn.
The club right from the owners and hierarchy has persistently failed to model, uphold and live by elite corporate long-term behaviors of continued excellence in recruitment, performance and results.
- The CEO, board and management of Arsenal FC has consistently failed to drive sustained value creation on the pitch and off the pitch.
- They don’t invest in sufficient capital, resources and talent in large, risky initiatives to achieve a winning position for the club.
- The CEO, board and management of Arsenal FC don’t construct sustainable and sufficient strategic initiatives that deliver returns exceeding the cost of capital and talent at the club.
- They don’t dynamically allocate capital and talent via divestitures, where necessary – to businesses and initiatives that create the most value for the club, its players and fans.
- Arsenal FC don’t generate sustainable and sufficient value for the manager, coaching staff, health experts, players, fans, and other stakeholders other than for the shareholders of the club.
- The CEO, board and management of Arsenal FC have failed to ensure that strategic investments are fully funded each year or each season and have the appropriate and sufficient talent assigned to them.
- Arsenal FC hardly evaluate the CEO and the board based on the quality and execution of the club’s strategy, the club’s culture, and the strength of the club’s management team rather than on just near-term financial performance which also hasn’t been sustainable and sufficient for the good of the club and its fans.
- The CEO, board and management of Arsenal FC don’t structure executive compensation over longer time horizons – including the time after executives leave the club.
- They don’t personally ensure that strategic initiatives are funded and staffed properly and protected from short-term earnings pressure for the good of the club, its players and fans.
- The CEO, board and management of Arsenal FC hardly adapt their management systems to encourage bold risk taking and to counter biased and conventional decision-making.
- The CEO, board and management of Arsenal FC hardly proactively identify and engage long-term oriented investors – while having the courage to ignore short-term shareholders and other members of the club’s investment community.
- Arsenal FC have clearly failed to demonstrate the link between financial and nontraditional metrics to prevent short-term trade-offs at the expense of the club, its players and fans.
- The CEO, board and management of Arsenal FC have over the years failed to stay the long-term course by resisting the temptation to take actions that boost short-term profits which aren’t and have never been sustainable for the good of the club, its players and fans.
- The owners, hierarchy and management of Arsenal FC must deliberately choose to prioritize long-term value creation for the good of the club, its players and fans.
- The CEO, board and management of Arsenal FC must embrace the responsibility of reorienting the club accordingly and seriously. In this way, they will be able to help Arsenal FC produce and deliver sustainable value for the club’s stakeholders over the long run.