Wednesday, 24 June 2015
THE UK and THE EU
The UK and The EU - AN UPDATE
Earlier on my Blog I expressed my views on the Big Debate - should The UK stay in The EU or exit the EU.
Since The In Out Referendum is fast approaching, I would like to emphasise some key points - my opinion only.
The UK accepts the Treaty of Rome and subsequent Treaties principle of the Free Movement of Labour, Goods and Services and Capital throughout member states of The EU
However, citizens of member states visiting The UK must claim all Welfare Payments and Healthcare Costs from their country of origin.
These Citizens must have Medical Insurance, a Job and have no criminal record.
If a member state refuses to pay these costs, The UK has the right to deduct payments and interest from its contribution to the central budget of the EU.
EU Immigrants cannot be hired at wages below UK minimum standards or replace British Workers who have first choice on job vacancies for the first 3 months of advertising the vacancies.
The UK will have the right to determine how many Asylum seekers enter the UK. The cost of upkeep must be born by the EU.
The UK does not want to join the Eurozone.
The UK will have the right way in law to deport convicted criminals or fraudsters. The Human Rights Convention must be amended accordingly.
EU Laws must be approved by The British Parliament before becoming effective.
The UK supports the notion of all EU states being granted the same rights as the UK.
The UK is proud to be European. The UK will continue to vigorously support Free Trade within The EU, Joint Ventures, Cultural and Social Exchanges, Law Enforcement, Detection of Criminals, Economic Growth and Peace throughout the EU and elsewhere.
The UK does not want to join an EU Army. It will remain a member of NATO.
The UK will advocate that the EU Budget is vetted and that the auditors sign off and approve the Annual Budget unlike at present.
There must be stronger Financial Management of EU affairs, transparency, verification and traceability of allocated funds.
If there are no fundamental changes in EU Legislation such as stated above, it is highly likely that The UK will vote OUT in The Referendum. In this case it is hoped that The UK will remain a strong Economic Trading Partner. If not, all of Europe will lose out and prosperity will be lost for a long time.
FOOTBALL - THE BEAUTIFUL GAME ?
FINANCIAL MANAGEMENT IN THE BEAUTIFUL GAME OF FOOTBALL
As an Alumni of Henley Business School and a lifetime supporter of Football with Swansea City and Arsenal, it has amazed me and indeed shocked me that FIFA and so many Football Clubs such as Glasgow Rangers, do not seem to know the most elementary principles of Financial Management and Good Practice Management such as promoted by The Henley Business School Faculties.
I love the beautiful game of football but I do not love how the game is promoted and managed. It has become a gluttonous game where footballers can earn up to £250,000 per match for often just kicking a football twenty times in a match and scoring no goals. Transfer fees have become outrageous - how can any footballer be worth a £80 Millions transfer ? Agents fees have become ridiculous. Companies such as Sky and BT charge fans large amounts per month in order to watch their favourite team on Television. Sponsors pay £ Millions to football clubs - I wonder if they get value for their investment ? Worse trend of all is the cost to football supporters who have to pay high prices for their season tickets or seats on a Saturday afternoon. How long can this crazy situation go on ?
The whole system is skewed in favour of the clubs in the Premier League and the Championship and that needs to change.
Recent events concerning alleged mismanagement of funds within the Global FIFA Organisation has highlighted once again the need for the Financial Management of Football to be more Professional and where Due Diligence is practiced as a matter of daily life.
How can this become reality and Corruption buried forever in the Higher Levels of Football Regimes ?
Not all Managements in Football today are corrupt. It is the greedy minorities in high positions that give he Beautiful Game a bad press and poor reputation.
Ivan Gazidis Chief Executive of Arsenal FA is an exception. He was educated at Oxford University and he was Co- Founder of The Football League in the USA. He is a Beacon of Hope for the Football Industry. We need many more Chief Executives like him.
Here is my personal advice to Football Club Management and particularly FIFA. These are my personal recommendations after many years of Management practiced with integrity and dignity.
Financial Management is the Top Priority for the future success and respect of Football. May it flourish in the future
managed by strong dedicated Financially astute people with impeccable characters and inspirational leadership.
KEY PRINCIPLES FOR FINANCIAL MANAGEMENT IN FOOTBALL
Funds allocated to any affiliated Association or cause must be Verified, Analysed, Checked and rechecked by a Financial Committee and Non Executive Directors before being signed off for Payment.
Traceability - all funded Projects,schemes or player transfers must be capable of traceability and inspection. For example, funds for a new stadium must be accounted for and verified and subject to physical inspection by members of the Main Board of Directors.
Commission payments,bonuses and any other payments to a third party must be checked and verified.
No payments should be made such as transfer fees which would put the borrowing to income ratios outside the long term repayment capability of the Club or Football Association.
Tax evasion should be strictly prohibited.
The Top Management and the Directors must have had training in Financial Management and Good Practice Management. An opportunity for Henley Business School and other Top Business Schools to offer short term seminars
and qualifications. The Government should promote such professional courses. I wonder how many of our leading Chairmen and Chief Executives have had some sort of training in Financial Management ? How many senior positions in The Football World have been filled by Celebrities without training in Financial Management ? Just because a person has reached the heights of Corporate Management in one Sector does not mean he or she is the best candidate for a senior position in Football Management. Certainly a famous footballer, excellent on the football pitch may be a disaster in the Top Management of Football.
External Auditing should be regular practice with interim reviews. Auditors must share some of the blame for allowing corruption no misuse of funds to be allowed. No excuses !
Structural Changes should be considered. Perhaps the organisation is too big and lines of communication and accountability too extended -example of Sepp Blatter of FIFA. Avoid cliques and secret meetings which are not documented and recorded.
In many cases, I believe that the independent Auditors have not done a good job following my key principles of -
Authorisation
Verification
Traceability
Regular auditing
Physical checks on Projects
Identification of bad practise
Management Accountability
All functions performed by a skillful and well trained Management.
These Principles must apply to third party allocation of funds. This Is to prevent fraud and misuse of funds such as commissions, consultancy fee elevations, backhanders, hidden funds. Strict auditing is the key function - both internal auditing and independent external auditing.
The Inland Revenue should be more vigorous in vetting salaries of footballers, transfer fees and annual tax bills. Offshore accounts and third party concealments of funds need to be pursued more aggressively. How much annual tax does Wayne Rooney of Manchester United pay each year to the UK Tax Authorities?
Beware of the following words when analysing accounts -
Miscellaneous Expenditure
Consultancy Fees
Management Fees
Government fees
Government and Local Taxes
Expenditure brought forward
Introductory Commissions
No Receipts
Entertaining Expenditure
Past Tax payments
Beware of non authorised Offshore Bank Accounts and no funds should be channelled through personal accounts.
You may find some surprised loopholes in the accounts.
Finally, the difference between a CEO as Leader and a CEO as Figurehead is simply this -
The former accepts full responsibility for ensuring that all aspects of The Organisation functions in accordance with The Strategy, Policies, Objectives and Ethos of the Organisation.
The latter says - I did not know what was going on so that I cannot be held responsible !
Raymond Williams MA MPhil MBA DIPM
EUREKYS
Henley Business School Alumni
Ray Williams has 25 years experience as CEO in 3 Leading British Companies.
He is Past Winner of The National Marketing Award - for an Outstanding Achievement in British Marketing.
Awarded the Government Certificate of Excellence for Business Advisory Services.
Educated at Harvard Business School, Lancaster University, Brunel University and Henley Business School
Founder of EUREKYS Business Consultants.
For Debate and to reach a consensus Policy of Best Principles for Football Management.
Make the Beautiful Game managed by Beautiful People.
As an Alumni of Henley Business School and a lifetime supporter of Football with Swansea City and Arsenal, it has amazed me and indeed shocked me that FIFA and so many Football Clubs such as Glasgow Rangers, do not seem to know the most elementary principles of Financial Management and Good Practice Management such as promoted by The Henley Business School Faculties.
I love the beautiful game of football but I do not love how the game is promoted and managed. It has become a gluttonous game where footballers can earn up to £250,000 per match for often just kicking a football twenty times in a match and scoring no goals. Transfer fees have become outrageous - how can any footballer be worth a £80 Millions transfer ? Agents fees have become ridiculous. Companies such as Sky and BT charge fans large amounts per month in order to watch their favourite team on Television. Sponsors pay £ Millions to football clubs - I wonder if they get value for their investment ? Worse trend of all is the cost to football supporters who have to pay high prices for their season tickets or seats on a Saturday afternoon. How long can this crazy situation go on ?
The whole system is skewed in favour of the clubs in the Premier League and the Championship and that needs to change.
Recent events concerning alleged mismanagement of funds within the Global FIFA Organisation has highlighted once again the need for the Financial Management of Football to be more Professional and where Due Diligence is practiced as a matter of daily life.
How can this become reality and Corruption buried forever in the Higher Levels of Football Regimes ?
Not all Managements in Football today are corrupt. It is the greedy minorities in high positions that give he Beautiful Game a bad press and poor reputation.
Ivan Gazidis Chief Executive of Arsenal FA is an exception. He was educated at Oxford University and he was Co- Founder of The Football League in the USA. He is a Beacon of Hope for the Football Industry. We need many more Chief Executives like him.
Here is my personal advice to Football Club Management and particularly FIFA. These are my personal recommendations after many years of Management practiced with integrity and dignity.
Financial Management is the Top Priority for the future success and respect of Football. May it flourish in the future
managed by strong dedicated Financially astute people with impeccable characters and inspirational leadership.
KEY PRINCIPLES FOR FINANCIAL MANAGEMENT IN FOOTBALL
Funds allocated to any affiliated Association or cause must be Verified, Analysed, Checked and rechecked by a Financial Committee and Non Executive Directors before being signed off for Payment.
Traceability - all funded Projects,schemes or player transfers must be capable of traceability and inspection. For example, funds for a new stadium must be accounted for and verified and subject to physical inspection by members of the Main Board of Directors.
Commission payments,bonuses and any other payments to a third party must be checked and verified.
No payments should be made such as transfer fees which would put the borrowing to income ratios outside the long term repayment capability of the Club or Football Association.
Tax evasion should be strictly prohibited.
The Top Management and the Directors must have had training in Financial Management and Good Practice Management. An opportunity for Henley Business School and other Top Business Schools to offer short term seminars
and qualifications. The Government should promote such professional courses. I wonder how many of our leading Chairmen and Chief Executives have had some sort of training in Financial Management ? How many senior positions in The Football World have been filled by Celebrities without training in Financial Management ? Just because a person has reached the heights of Corporate Management in one Sector does not mean he or she is the best candidate for a senior position in Football Management. Certainly a famous footballer, excellent on the football pitch may be a disaster in the Top Management of Football.
External Auditing should be regular practice with interim reviews. Auditors must share some of the blame for allowing corruption no misuse of funds to be allowed. No excuses !
Structural Changes should be considered. Perhaps the organisation is too big and lines of communication and accountability too extended -example of Sepp Blatter of FIFA. Avoid cliques and secret meetings which are not documented and recorded.
In many cases, I believe that the independent Auditors have not done a good job following my key principles of -
Authorisation
Verification
Traceability
Regular auditing
Physical checks on Projects
Identification of bad practise
Management Accountability
All functions performed by a skillful and well trained Management.
These Principles must apply to third party allocation of funds. This Is to prevent fraud and misuse of funds such as commissions, consultancy fee elevations, backhanders, hidden funds. Strict auditing is the key function - both internal auditing and independent external auditing.
The Inland Revenue should be more vigorous in vetting salaries of footballers, transfer fees and annual tax bills. Offshore accounts and third party concealments of funds need to be pursued more aggressively. How much annual tax does Wayne Rooney of Manchester United pay each year to the UK Tax Authorities?
Beware of the following words when analysing accounts -
Miscellaneous Expenditure
Consultancy Fees
Management Fees
Government fees
Government and Local Taxes
Expenditure brought forward
Introductory Commissions
No Receipts
Entertaining Expenditure
Past Tax payments
Beware of non authorised Offshore Bank Accounts and no funds should be channelled through personal accounts.
You may find some surprised loopholes in the accounts.
Finally, the difference between a CEO as Leader and a CEO as Figurehead is simply this -
The former accepts full responsibility for ensuring that all aspects of The Organisation functions in accordance with The Strategy, Policies, Objectives and Ethos of the Organisation.
The latter says - I did not know what was going on so that I cannot be held responsible !
Raymond Williams MA MPhil MBA DIPM
EUREKYS
Henley Business School Alumni
Ray Williams has 25 years experience as CEO in 3 Leading British Companies.
He is Past Winner of The National Marketing Award - for an Outstanding Achievement in British Marketing.
Awarded the Government Certificate of Excellence for Business Advisory Services.
Educated at Harvard Business School, Lancaster University, Brunel University and Henley Business School
Founder of EUREKYS Business Consultants.
For Debate and to reach a consensus Policy of Best Principles for Football Management.
Make the Beautiful Game managed by Beautiful People.
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