Thursday, May 28, 2009

Barcelona's Victory Is Good Business

We English are expected to support English clubs in Europe but I don't much like the English Premiership set-up so I prefer to support a team I do admire like Barcelona.

Compare and Contrast. Man Utd, like all English clubs, embraced the free market and in their case ended up owned by an American company who saddled them with £700 million in debt. Barcelona are owned by their 113,000 members who elect their Board and President. They even turned down a £20 million sponsorship of their shirts in favour of promoting UNICEF. Football clubs started as teams with fans- Barcelona have stayed that way and still manage to be more financially successful than Man Utd.

There is a lesson. Don't underestimate co-operatives as a way to run a business- John Lewis, The Co-Op Bank and the Phone Co-Op all do very well, as do many of the trusts that run arts organisations. The danger of the more common business model is that shareholders come before customers and employees. The result is bigger and more remote (geographically and emotioanlly) companies.

Giving power to the people who are the company- the employees or the customers- ensures that the business doesn't forget why it was created in the first place.

No comments: