Soccer is a very beautiful form of capitalism.
The club has to win trophies as one of its methods to keep and attract fans.
And when the player becomes very good like Ronaldo, sell him off and get a new player to replace him.
This is where the beautiful part comes in. You know how a company acquires and sells assets? This is the art which Man Utd has perfected. They don't hold on to superstars when their value is boosted to the maximum potential. The player is sold and the Alex Ferguson is entrusted with the responsibility of getting a trophy winning replacement within a reasonable period of time.
So maybe Man Utd might not win a trophy for 1 or 2 seasons after they sell Ronaldo. But the profits outweigh the losses(I would think so).
This means that the most valuable assets to the club are in fact the coaches, managers, and talent scouts. If they are not top-notch, the club will probably end up like WestHam or Tottenham where they recognise their aim is to remain mid-table and have to manage their assets accordingly; which means a team with no superstars.
On the other hand, Real Madrid is an example of a luxury hobby. They simply buy players at their peak value and sell them off at a much lower price. It's like a rich man buying all the latest gadgets and gizmos and what not, and selling them second hand after he has had his fun.
The conclusion is this. Companies out there should recruit medium-high range people talents for their management trainee programmes and get superstars for specific roles which are non-managerial. Managers should preferably stay with the company for a longer duration while specialists should be squeezed off their contributions before they jump ship to better paying offers.
Tuesday, March 03, 2009
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