Friday 06 May 2016 11:29 am

Arsenal are just a franchise, Manchester United prioritise profit, Chelsea’s structure is skewed but Manchester City may be on the up – a management expert discusses Premier League clubs

Build a strong team, win games, lift silverware: the external barometers for a football club are long established, but a new report suggests there is much more to look at when analysing how well a club is run.

A new index from Organizational Maturity Services LLP (OMS LLP) judges Premier League clubs on their management quality from top down; their ability to build long-term, sustainable success.

Despite the huge amounts of money now swirling around the game, top teams in England have surprisingly "immature" organisational structures. Even better-run clubs such as Arsenal have work to do, while Newcastle might want to rip everything up and start again.

Here's how a selection of Premier League clubs are rated, with commentary from OMS LLP managing partner Stuart Woollard.

Arsenal: BBB-

Arsene Wenger is central to Arsenal's footballing operations (Source: Getty)

Arsenal's fan base is currently in the midst of a civil war over whether long-serving manager Arsene Wenger should be allowed to continue as boss after another wilted title challenge.

Yet the real person holding Arsenal back may be owner Stan Kroenke who appears to run the club as he would a US sports franchise. In fact, as Wenger is left in almost sole charge of the footballing side of the business, sacking him could have very disruptive consequences according to OMS LLP's analysis.

Woollard: "It's very, very clear what Kroenke's bought Arsenal for and that's to build another sports franchise. There's very little concern about Arsenal in terms of connection to North London or the wider footballing fraternity.

"Kroenke is there to create financial value in a sports franchise. And it's very evident in the way that club is managed by Ivan Gazidis that he is there because Kroenke wants him to run that club in such a manner.

"From a human governance perspective, they’ve totally relied on Wenger. Arsenal score reasonably well in how they get value from their human capital but that comes from Wenger as an individual and not the club itself."

Manchester City: BB+

Manchester City boast of some of the most advanced training facilities in world football (Source: Getty)

Manchester City are on an upwards trajectory according to the report, as they "appear to understand the need to build wider management foundations".

City have struggled to convert their financial strength into a Champions League triumph, but the club will continue to knock on the door — and with an increasing force — as short-term goals have been combined with a long-term strategy.

Woollard: "When you look at Manchester City, they are a club investing in broader management capability. In terms of those rich clubs who have the serious resources to bring to bear, they are on an upward curve.

"They've made huge investments in infrastructure and youth academy and so forth. They've got a billionaire owner who is less concerned with Manchester City as a sports franchise and is more concerned with building a long-term value proposition as a football club which is going to excel.

"The starting point, the purpose, is different. Manchester United are managing a brand, City are managing excellence within a football club. They started from a very low base but are laying down infrastructure and if they continue on that path it will bear fruit."

Manchester United: BB-

United are a money-making machine under the Glazers…but have lost their way on the pitch (Source: Getty)

United are highlighted in the OMS LLP report as a prime example of a club that has failed to build coherence — in purpose, strategy and practice — from the top down. The club has flexed its considerable commercial clout under the ownership of the Glazers, with executive vice-chairman Ed Woodward adept at convincing brands the world over to slap Wayne Rooney's face on their front cover, but less effective at influencing on-pitch success.

They have been particularly hamstrung by their over-reliance on Sir Alex Ferguson's genius and failure to have built adequate and effective management systems extending beyond the dug-out during his tenure.

Woollard: "Manchester United have not built a mature management organisation. They’re a club with the resources to be able to do it.

"They have not stood back and said 'who are we as a club? what are our values? How does that translate into how we manage ourselves and how the team plays on the pitch? Is there a coherent thread that runs through us? They have not understood that.

"Ferguson was looking for a replica of himself. Now they’ve skewed away from what they were, and you’ve got all these players throwing mud at them saying; ‘They’re not the Man United they’re supposed to be.’

"The Glazers ask ‘what’s going to drive the top line in the biggest way possible?' That’s the management of the global brand. So everything is focused on that."

Chelsea: B-

Chelsea have struggled to build a dynasty since Roman Abramovich took over (Source: Getty)

Chelsea's demise this season is cited as a prime example of why even financially powerful clubs can suffer if they are weak in other areas of the organisation.

While the Blues have demonstrated an increasing desire to build a more sustainable model for success by building one of the most successful youth academies in Europe, the flaw in strategy is exposed by the fact that very few of their bring young prospects are ever given a chance in the first team.

Woollard: "If you look at Chelsea, they’ve had an absolute disaster of a season after winning the league.

"They're a very good example of a highly immature organisation where there’s a serious failure to understand that human capital matters to success.

"There’s no coherency around their strategy, there’s dysfunctionality across the organisation, particularly when Mourinho was in charge. And consequently, things have gone very wrong very quickly."

Newcastle United: CCC

Newcastle fans are furious with Mike Ashley's approach to running Newcastle (Source: Getty)

Newcastle are the worst-rated team on OMS LLP's organisational maturity index, below even Aston Villa and relegation rivals Norwich and Sunderland.

That means they are said to be guilty of strategic incoherence, inconsistent decision making, fragmented organisation and a disconnection with core football values.

The report also outlines that money is becoming less and less determinative in where a team finishes, arguing; "immature organisations will inevitably fail in time, irrespective of financial success". No club has demonstrated that better than Newcastle who are in serious danger of dropping into the Championship this season despite spending more than they ever have before on new players.

Woollard: "At Newcastle you have an owner who is a financial opportunist, the classic deal-making entrepreneur. He doesn't appear to be interested in Newcastle as a club, nor creating footballing excellence.

"His motivations are not about that and that translates all the way through to the club is managed. Is there a parallel between Sports Direct and Wonga and the way Newcastle are run from a human perspective? I would argue that there is. There's no coincidence that you have a coalition of brands and Mike Ashley is a central figure.

"Newcastle are a great example of a club who, if they were to adopt a Southampton philosophy and practice throughout their whole organisation, they're a club who should be competing at the top end of the Premier League."