Compared to clubs like United and Real Madrid over the years, Liverpool has failed to capitalise on their markets abroad. Although they have millions of supporters around the world, the Merseyside club has lagged behind financially because it has lacked the business acumen to tap into the lucrative markets in Asia. Although the Reds have toured the Far East on many occasions, the lack of marketing and sponsorship from such areas was to plain to all to see. Combined with his apparent falling out with Rafa Benitez, this failure to capitalise financially in highly lucrative areas was one of the main reasons Rick Parry resigned as Chief Executive at the end of last season.
In a very public interview, Liverpool co-owner Tom Hicks expressed this very concern about Rick Parry’s abilities as a business manager, and contributed to the long serving Chief Executive’s departure. The arrival of Christian Purslow as Managing Director was a clear sign of the direction that both the co-owners and the Liverpool board wanted the club to go in. With the naming of the Chief Executive being delayed for the immediate future, Purslow has the full reins to begin tapping into these unopened pots of gold. As always with the American owners, an air of cynicism will cloud these attempts as it will be seen to be just another way to squeeze every ounce of profit out of the club.
To some extent there is truth in this, the debt on the club has to be repaid somehow and this will be a profitable way of doing this. However there is no doubt that Liverpool Football Club could be produce far more financially. Its large fan base around the world could finance not only the debt, but also the new ground and the ability to produce funds to not only buy players, but to keep many players that are already on board. As most Liverpool fans are fully aware, despite the fact that the club is struggling in the league at the moment, there will be little money to spend in January. Of course we could demand the American owners to empty their pockets for cash, but we know that is not going to happen. Even if we did, it is not a sustainable business model to keep a football club afloat in the long term and see continued success in the future.
The answer is expansion abroad, and this is where the role of Christian Purslow comes in. Purslow has a background in private equity, a financier unlike Parry, but he also has links in football. He is a friend of Kenny Dalglish and he also speaks fluent Spanish which means he has struck up a very good relationship with Rafa Benitez. His job has been to open avenues of revenue around the world, and he has made an immediate impact in this area.
I believe the most significant development of the season for Liverpool, both off and on the pitch is the signing of the new sponsorship deal with Standard Chartered bank. A 20million a season four year deal with the London/Hong Kong based bank which matches, if not slightly exceeds the deal Manchester United made with Aon. It is intended to extend the global reach of Liverpool. Purslow stated Standard’s operations around the round will be crucial to that:
“We have a long-term plan to increase the family of Liverpool fans, Many branches in these countries will effectively be a shop window for Liverpool Football Club and a means of attracting more supporters to the cause.”
It is the biggest sponsorship in club’s history. If it sets the precedent for other deals that Liverpool are involved in; the future will look bright both on the field and off the field for the club. It could bring in an era of prosperity to allow Liverpool to compete financially in the transfer market with Manchester United and Real Madrid, and consequently lead to an era of prosperity on the pitch with Benitez as the manager. As Purslow said:
“As you drive your revenues forward, you try to generate profits and those profits will be used to invest in the future of the club, which, in football speak, often means buying players. From next summer, one of our key [income] lines, the revenue line, will be substantially increased as a function of this commercial agreement, so a normal ratio of that will go to the wage bill and my ability to support Rafa in the transfer market will be hugely enhanced. We want to be the best football team in the world and there is a pretty clear link between that and having the best performance off the field.”
In another interview, before the Manchester United game, Purslow expressed that his plans for the club included a long stay for Benitez:
“Liverpool Football Club is on a long-term journey and that journey is to be the most successful club, firstly in our country and secondly in the world and you don’t do that by worrying about short-term results. You do that by having long-term plans centring on the people and the strategy. Rafa Benitez is absolutely central to that plan.”
If that journey is completed, Liverpool will be one of, if not the biggest in the world, financially as well as on the pitch.
In a very public interview, Liverpool co-owner Tom Hicks expressed this very concern about Rick Parry’s abilities as a business manager, and contributed to the long serving Chief Executive’s departure. The arrival of Christian Purslow as Managing Director was a clear sign of the direction that both the co-owners and the Liverpool board wanted the club to go in. With the naming of the Chief Executive being delayed for the immediate future, Purslow has the full reins to begin tapping into these unopened pots of gold. As always with the American owners, an air of cynicism will cloud these attempts as it will be seen to be just another way to squeeze every ounce of profit out of the club.
To some extent there is truth in this, the debt on the club has to be repaid somehow and this will be a profitable way of doing this. However there is no doubt that Liverpool Football Club could be produce far more financially. Its large fan base around the world could finance not only the debt, but also the new ground and the ability to produce funds to not only buy players, but to keep many players that are already on board. As most Liverpool fans are fully aware, despite the fact that the club is struggling in the league at the moment, there will be little money to spend in January. Of course we could demand the American owners to empty their pockets for cash, but we know that is not going to happen. Even if we did, it is not a sustainable business model to keep a football club afloat in the long term and see continued success in the future.
The answer is expansion abroad, and this is where the role of Christian Purslow comes in. Purslow has a background in private equity, a financier unlike Parry, but he also has links in football. He is a friend of Kenny Dalglish and he also speaks fluent Spanish which means he has struck up a very good relationship with Rafa Benitez. His job has been to open avenues of revenue around the world, and he has made an immediate impact in this area.
I believe the most significant development of the season for Liverpool, both off and on the pitch is the signing of the new sponsorship deal with Standard Chartered bank. A 20million a season four year deal with the London/Hong Kong based bank which matches, if not slightly exceeds the deal Manchester United made with Aon. It is intended to extend the global reach of Liverpool. Purslow stated Standard’s operations around the round will be crucial to that:
“We have a long-term plan to increase the family of Liverpool fans, Many branches in these countries will effectively be a shop window for Liverpool Football Club and a means of attracting more supporters to the cause.”
It is the biggest sponsorship in club’s history. If it sets the precedent for other deals that Liverpool are involved in; the future will look bright both on the field and off the field for the club. It could bring in an era of prosperity to allow Liverpool to compete financially in the transfer market with Manchester United and Real Madrid, and consequently lead to an era of prosperity on the pitch with Benitez as the manager. As Purslow said:
“As you drive your revenues forward, you try to generate profits and those profits will be used to invest in the future of the club, which, in football speak, often means buying players. From next summer, one of our key [income] lines, the revenue line, will be substantially increased as a function of this commercial agreement, so a normal ratio of that will go to the wage bill and my ability to support Rafa in the transfer market will be hugely enhanced. We want to be the best football team in the world and there is a pretty clear link between that and having the best performance off the field.”
In another interview, before the Manchester United game, Purslow expressed that his plans for the club included a long stay for Benitez:
“Liverpool Football Club is on a long-term journey and that journey is to be the most successful club, firstly in our country and secondly in the world and you don’t do that by worrying about short-term results. You do that by having long-term plans centring on the people and the strategy. Rafa Benitez is absolutely central to that plan.”
If that journey is completed, Liverpool will be one of, if not the biggest in the world, financially as well as on the pitch.
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