Crystal Palace nearly went out of business in the summer, but under its new owners it is looking to a brighter future, even if the club is currently in the relegation zone in the Championship. They seem to have systematic but prudent plans for long-term development.
Crystal Palace nearly went out of business in the summer, but under its new owners it is looking to a brighter future, even if the club is currently in the relegation zone in the Championship. They seem to have systematic but prudent plans for long-term development.
The club was bought by Simon Jordan in 2001, enjoyed one season in the Premiership in 2004-5 and was in administration by 2010. A number of words could be used to describe Simon Jordan but I will confine myself to the word ‘flamboyant’ which is used in an article about the club by top football economics guru Stefan Szymanski writing in the Evening Standard.
I rate Szymanski as the UK’s top expert on the economics of football. Palace now has a group of owners which is always in principle a better arrangement that one individual with his own distinctive agenda. The front man is co-chairman Steve Parish who built up Tag from small beginnings into a global advertising business with a £100m turnover. His father was a trade union leader and he is noted for his sense of social responsibility.
Szymanski characterises Parish’s philosophy of business as ‘straightforward and practical’ which is just what a football club needs. ‘Financial rewards are important, but creating the right atmosphere matters too’.
Perry and his co-owners (Stephen Browett, Jeremy Hosking and Martin Long) say they had no wish to own a football club but as wealthy fans could not allow the club to go under. They see themselves as trustees with a responsibility one day to pass on he club in good order. Parish likens match-day meetings with directors from other clubs as one of middle-age men with a common ailment, in this case trying to make football clubs solvent.
Parish argues with good reason that a number of clubs have traded when insolvent which is actually illegal. He also thinks that the rule that gives priority to football creditors creates a business model where selling clubs accept promise to pay one day which are simply not credible.
Parish sees the club’s future as building a youth system, which he admits is not easy [the real problem here in my view is the poaching of promising players by bigger clubs with inadquate compensation being paid].
The other element in the plan is to build a new stadium near Selhurst Park which give fans a better matchday experience. It can then be used during the week for events and conferences to generate a stable revenue stream. My question mark would be how much market research has been done because this is quite a well supplied market in London and the area where Palace is located is not that easily accessible from Central London.
Moreover, building a new stadium costs a lot of money and can become a drag on a club. I don’t know that part of South London well enough to identify suitable sites. I did visit a Croydon non-league club (of which there are two) next to the tram line which had a big site, but the approach roads were difficult for coaches.
I also think that clubs like Palace located in the suburbs, particularly the transpontine suburbs, can have a problem about their brand. Admittedly you can have a strong but negative brand like Millwall. ‘Crystal Palace’ means to some people the athletics track and to others the original Victorian building destroyed by fire. But these are some way from the ground which doesn’t even have a overground railway station close by bearing its name.
I’m not suggesting the club should change its historic name. Particularly in Scotland and also in continental Europe, there are plenty of clubs that succeed without a specific geographical identifier. However, should the club identify more specifically with Croydon, a major hub in South London?