Business success within sport is key and becoming ever more important, one very common story within Scotland has been the fall from grace of Rangers FC. The business side of the organisation was badly handled and this resulted in them being relegated from the top division. This irresponsible and short term approach is now much more unlikely within football as a result of the Financial Fair Play model. Business planning is key to giving your team on the pitch or within the workplace the best chance of succeeding. We also look at how businesses linked to your brand or organisation can maintain and increase interest on what you are doing.
In February 2012 Rangers were placed into insolvency and entered a long and traumatic period for a club of its size and stature within the game. A failure to reach an agreement with creditors ensured that the club was liquidated in June 2012 and the club was effectively relegated to the third tier of Scottish Football. Simply a remarkable tale, if this occurred in the English Premiership it’s like Manchester United or Liverpool being relegated and playing York and Accrington Stanley every week! Blame was thrown and reasons cited but atrocious business planning and a reckless financial overspend was the wave which crashed into Rangers. Their rivals Celtic looked on in disbelieve and have since been unchallenged for dominance in the league.
Alongside Celtic, Rangers was the dominant force within Scottish football and really should have avoided the nightmare that has followed since. Being a superpower in a division they should have taken advantage of more commercial deals and activity within the sporting marketplace. Firms like Coral are linked into football and organisations who have a large global reach, so they could have used partnerships with businesses like these to give it more cash to provide more bedrock to their business planning. Rangers have actually risen through the divisions and they might actually re-join Celtic in the SPL next summer. For the latest odds catch it with Coral, see if Rangers can finally get back in the big time where they belong. They are currently joint first in the Championship but there is only one promotion place up for grabs and Hibernian are pushing them all the way! Financial Fair Play or FFP has become a very big deal within football and this is the responsibility to keep within certain operating parameters to not face liquidation or closure like Rangers only narrowly avoided. Even big sides like Manchester City and Chelsea have been woken up by FFP, but this innovation should make all businesses, sporting and non sporting, keep their eye on the ball and a continual focus on business planning. Football and business can be worlds apart but poor business planning has a very real effect on individuals, employees and their community.