Newspaper article The Journal (Newcastle, England)

Experience Usually Makes a Difference

Newspaper article The Journal (Newcastle, England)

Experience Usually Makes a Difference

Article excerpt

Byline: Andy McNab

ALAN Shearer's appointment as manager of Newcastle United emphasises the importance of employing an experienced manager with the freedom to make investments in his squad.

Shearer has been given the job because previous managers have failed to get the best out of an underperforming set of players, or have made poor investments.

With relegation a real threat, Shearer's return could turn out to the best investment Newcastle United has made recently.

There is a financial lesson to be learnt from Newcastle United's recent decline.

The fact that the club has even had to turn to a man with no managerial experience is worrying enough. It is unlikely that many people would give their investment portfolio to a relative novice to manage. Newcastle's owner Mike Ashley and the Newcastle fans are literally banking on Shearer's presence and reputation to rally the squad and lift them out of the bottom three.

Our argument, as experienced investment managers, is that if they had employed the right manager and made the right investments, they wouldn't be in this predicament.

It is simple to say, but making sure you invest in the right areas and have a trusted manager to ensure those investments are performing to their full potential is as important in football as it is in wealth management.

If you get those investments wrong or have a series of managers who have differing ideas about where money should be invested, the consistency of approach and the blend of assets can get disjointed, impacting on performance.

Newcastle are a prime example of this and while they are not alone in making poor purchases; pounds 8m on Jean-Alain Boumsong, pounds 5.8m on Elena Marcelino, pounds 9.5m on Albert Luque, pounds 7m on Carl Cort and pounds 8.5m on Hugo Viana are just some of the expensive investments made by the club which have failed to deliver. The poor investments have been a symptom of the changing management teams. In the 10 years that Shearer played for Newcastle, there were five different managers.

In the three years since he left there have been another four managers, five if you include Chris Hughton. …

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