Is it possible to take charge of an organisation in the commercial world and run it effectively if you know little or nothing about the company’s core business?
Imagine an automotive industry wizard – the sort of person who has built up a highly successful engineering business – being parachuted into ailing supermarket giant Woolworths and being told to turn it round quickly.
Do you back the person running a mining empire to know how to run an emotional and consumer oriented sector such as health care?
As Football Federation Australia was trying to sell Newcastle Jets, Melbourne City’s owner City Football Group was in talks with Chinese investors.Desperate to sell the Jets after seizing control from cash-strapped cowboy owner Nathan Tinkler last May, talks over an estimated $3m sale collapsed last month.
Weeks later CFG sold a 13 per cent stake to China Media Group (CMG) for $553.3m, valuing City’s owners at $4.15 billion. Melbourne City’s true value is hard to quantify, but it’s more than the $11.25m they paid in January 2014.
Global investment in football is out of control, but the A-League has stagnated. How does the A-League tap into the serious football wealth abroad rather than scrapping for a few million dollars to stay afloat?