The unsustainable way to run a football business?

Here is a GREAT discussion article for looking at financial objectives, investment and (non) profitability. One way to use the article is as follows:

Ask the class to think of what they would do with £100m pounds. In between the ludicrous comments hopefully someone will pick up on buy a sports team or player.

Get the class to read the article and list down the possible implications of a business paying excessive wages (you may want to introduce bankers bonuses as well).

Focus the discussion on sustainability and whether it is good business investment or not.

Introduce the fact that the turnover at Man City is now LESS than their wage bill. Is this sustainable?

Conclude the discussion by considering factors contributing to financial sustainability e.g. being a Limited Company with cash rich owners (unlikely in the majority of businesses), investors attitude to future returns on these short term loss making investments, amount lost per year above revenue, lenders attitude to this strategy, repayment strategy, future returns on capital employed.