The Business Acumen of Arsene Wenger:

Nneoma Ituma (NI)
Sep 6, 2018 · 6 min read

Lessons to SMEs & Businesses

After careful consideration and following discussions with the club, I feel it is the right time for me to step down at the end of the season. I am grateful for having the privilege to serve the club for so many memorable years. I managed the club with full commitment and integrity. I want to thank the staff, the players, the directors and the fans who make this club so special. I urge our fans to stand behind the team to finish on a high. To all the Arsenal lovers take care of the values of the club. My love & support forever…

These were the words of Arsene Wenger as he announced his exit from Arsenal at the end of the season on Friday, 20th April 2018. He joined Arsenal in 1996 and has been manager for 22 years, he is, of course the longest serving manager of Arsenal FC. Having a career that long, points to the fact that, there has been the good, the bad and the ugly with relevant lessons which we can relate to and learn from, especially as regards running a business.

Innovation: In October 1996, when Arsene arrived at Highbury, he was all about the transformation of the club, these changes disrupted the status quo. He took it beyond the pitch, it was more of a revolution as he introduced major changes to the players’ dietary habits, drinking culture, training regimes and ultimately the team’s style of play. It was no wonder, that the team won the 1997/1998 FA Cup. This is a clear message to SMEs and businesses in general, on entry into a market, ensure that you properly examine the market and come up with new strategies or revolutionize existing strategies in order to have an easier entry and an increased market share as a new entrant. There have been several instances in which new businesses have disrupted their industries and have come up with better services, giving them an access to a larger market share and high demand for their customized services on entry.

Excellent & Consistent Delivery: The height of Arsene Wenger’s career was in 2003–2004 and the team was described as ‘The Invincibles’. Arsenal went a whole season without a single defeat. The team was made up of great players such as: Henry, Bergkamp, Cole, Toure, Gilberto, Vieira etc. playing a 4–4–2 formation. Arsene Wenger was then described as ‘the most astute manager in the Premier League and all of football at the moment’. He demanded professionalism and discipline from players. He was described by goal.com as, “a brilliant combination of tactical nous and ruthlessness, assembling teams that played scintillating football and were not intimidated by anyone.” This emphasizes the place of delivering excellently in business and having the required competence to run the business. It requires knowing the nitty-gritty of the business in depth, in order to show brilliance and mastery in rendering of services and the sale of products. An emphasis on consistently great delivery every time keeps your customers and ultimately, referrals from retained customers helps to get new customers.

Scalability & Sustainability: In 2006, Arsenal said goodbye to Highbury and welcomed the Emirates stadium. According to arsenal.com, “Emirates stadium is acknowledged as one of the finest football stadiums in the world and was sold out for every first team game in its opening season.” This was expected to increase revenue greatly due to its 60,432 capacity (currently the 7th largest stadium in the United Kingdom by capacity). This of course, came at a price, as it cost Arsenal over £390m to construct the stadium and was in loan debt of over £260m. The team however, was still able to rake in profits, largely due to the profit it generated from the sale of its players by Arsene Wenger. He understood timing and was fully aware of when to sell the players to earn profits. This period witnessed the sale of Nicolas Anelka, Marc Overmars, Emmanuel Petit etc. Other income was also generated from the development of Highbury, and other sponsorship deals.

An article on Forbes stated, “The last time Arsenal incurred a loss was in 2002 but what the profit number masks is the critical roles played by the profits generated from selling players and the Highbury site. Without these substantial sources, Arsenal would have turned losses in seven of the last ten years.” Also according to Wikipedia, “Wenger took umbrage over-criticism and revealed the bank loans were contingent on his commitment to the club, in his words — the banks wanted the technical consistency to guarantee that we have a chance to pay them back. I did commit and I stayed under very difficult circumstances and critics’ reproach for having not won the championship in that period is overboard.” He described the stadium move as the toughest period of his life because of the restricted finances in place. Despite these, he managed to consistently finish in the League’s top four and ensure a steady stream of Champions League revenue.

This is a key lesson to businesses particularly SMEs to ensure to do the needful, putting in place whatever strategies to ensure sustainability especially during difficult times. Whatever policies/tactics/strategies to get additional income or reduce costs continuously should be employed. According to a report by the United Nations Industrial Development Organization — Investment and Promotion Office, Nigeria (UNIDO ITPO), only 20% of MSMEs survive in Nigeria. Arsenal’s case above is a clear reminder that all businesses, go through difficult times regardless of their size and whatever decisions taken at these times in running the business is very critical to the survival or death of the business.

Wenger’s business acumen has left us with great lessons, it is equally important we learn from his areas of improvement. As commonly said, ‘Change is the only constant thing’, in recent times, the game of football has seen continuous improvement and drastic changes in its dynamics. Compared to prior years, players are now being transferred for several other reasons such as: increased price tickets, sponsorships, merchandising and largely due to increasing broadcasting rights. All of these, which also rake in revenue, serve as the motivation for some clubs to transfer at very high prices.

Flexibility & Growth: However, Wenger, who had initially focused on repaying the club’s debt at the expense of strengthening the playing squad, had now maintained rigidity on his transfer policy to the dismay of fans and supporters, despite the changes in the game. The club once known as one of the best, was now said to be experiencing a ‘trophy drought’. Similarly, in business, there would be continuous changes, flexibility and growth in line with these changes, are required, as winning strategies of the past may not bring about wins in the present. Innovation in line with recent trends should be considered. There have been several instances of businesses who were at the top of their industry but did not make relevant changes in line with rising trends and consequently were almost kicked out of the market. A good example in the mobile phone industry is Nokia.

Unpredictability of business strategies: Furthermore, there have been several arguments as to whether Wenger’s tactics were outmoded or still relevant for the game today. However, I would consider this, from the angle of the ‘predictability’ of his tactics. In a world of efficient technology, videos and data analysis of football matches can be easily accessed. His opponents have been able to spot his predictable strategies and identify his movement patterns. This has made it easier for Arsenal to lose to other clubs. It is important for businesses particularly SMEs to be aware that, they are watched closely by their competitors and they would not hesitate to take advantage of any flaws or loopholes discovered. If the business and its strategies or moves are easily predictable, it makes it easier for competitors to take advantage of them and displace them out of the market.

In conclusion, Arsene Wenger bowed out of Arsenal with 3 Premier Leagues, 7 FA Cups and 7 Community shields. He managed a total of 828 games in the Premier League, won 476, drew 199 and lost 153 of these games. He won several individual honours such as: Premier League Manager of the season, English football hall of fame, Premier league manager of the month, LMA Manager of the Year etc. Sir Alex Ferguson, former manager of Manchester United, describes him as without doubt, “one of the greatest Premier League Managers.”

It has unarguably been, 22 years of demonstrating his love, dedication and passion for Arsenal FC and football ultimately.

Nneoma Ituma (NI)

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