Football Enthusiasts Among Financial Times Readers Showcase Their Sporting Skills
In the Financial Times' innovative new game, players take on the role of Premier League club managers, navigating the complex world of profit and sustainability. The game, which simulates the real-life challenges faced by clubs, has shed light on some intriguing trends and challenges.
One of the most striking findings is the struggle to adhere to the league's Profit and Sustainability (PSR) rules. More than half of the players in the game breached these financial limits, with an average balance at the end of the game standing at a staggering minus £113 million. This overspending led to some clubs, like the fictional Pinkham United, ending up being relegated.
Interestingly, most players who invested in new signings did so while also breaching the PSR limit. This raises questions about the current PSR rules, with critics arguing that they may unintentionally penalise investment.
Despite the financial struggles, investing in the team was common, with almost a third of all players spending enough on new signings to qualify for European football. On average, players invested more to strengthen their squad throughout the season than they raised from player sales.
Another trend that emerged was the sale of the women's team to the owners holding company. Almost 90 per cent of players chose this option, indicating a focus on the men's team and the challenges of balancing both teams financially.
The game also revealed that running a club is not easy. One dedicated CEO registered 48 attempts to balance the books, underscoring the complexity of managing a club's finances.
Despite the financial challenges, over two-thirds of players agreed to a documentary of the team's season, showing a commitment to transparency and accountability. Additionally, more than two-thirds of players in the game renamed Pinkham's famous old stadium to the Fizz Up Arena, reflecting the personal touch that players brought to their virtual clubs.
It's worth noting that the results of the game mirror some trends in the real world. Thirteen of the 20 Premier League clubs recorded a loss in the last financial year, and three-quarters of clubs have spent more than they have earned in the summer transfer window.
In conclusion, the FT's Premier League game offers a fascinating insight into the financial challenges faced by real-life clubs. It serves as a reminder that managing a club's finances is a complex task, requiring careful planning and strategic decision-making.
