northbank123 wrote:This idea that he has chartered the club to financial security and that his financial knowledge is an asset is obscene.
Let him apply for CFO or FD jobs at other massive plcs, see how impressed they are by his 40+ year old undergraduate economics degree.
To be honest the fact that he thinks he knows about finance has been hugely damaging. He was banging on and on around 2009/10 that football cannot exist in a bubble and how transfer prices etc would come crashing down. He built his whole philosophy and long-term plan on that and it has turned out to be spectacularly wrong.
What about financing of the stadium. In 2006, the club issued a 260m bond at commercial rates which was fixed for a 14 year period. Although it was only a year later the financial crisis happened, and all central banks around the world lowered interest rates to ensure liquidity remained. However, as we agreed to a fixed term interest rate, rather than a variable rate that moves with the broader market, we were stuck for 14 years paying close to 7-8% a year in interest, when the market rates for similar bonds were like 3-4% post financial crisis, and has continued to decline even up to today.
Why didnt Wenger using his 'financial expertise' to suggest a variable rate?
Our financing of the Emirates stadium was ridiculously expensive. Even the Highbury apartments were sold on the cheap because the housing crisis spread to the UK. The club clearly didnt do their research on market financing, or they did - but were blind to the dangers.
Wenger also keeps banging on about clubs 'going bankrupt'. Yet no there is no danger to any major European club going bankrupt. He keeps making these financial predictions that just never occur. Yet even still, he talks like his worlds are the gospel.
It really is a trait - to be able to talk so confidently about the laws of football and economics, ye not be humbled by getting it wrong so often. You could never say Wenger doesnt have a high opinion of himself.
http://www.espnfc.com/story/373845