Sunday, 25 October 2009

Rangers F.C. partly nationalised?

A quick Sunday post. The team manager of the Scottish football club Rangers, Walter Smith, has revealed that the club is unable to enter the transfer market because the club is now being run by its bank, the Lloyds Banking Group, which is 44.4% owned by the UK government via its vehicle UK Financial Investments Ltd. Rangers have, despite having a vast support, successive championships, and their own chain of sportswear shops in Scotland and Northern Ireland been overspending on players for years. While the bank has not taken a stake in the club, if the bank is forced to bail the club out (they could let, say Albion Rovers fail, but to let Rangers fail would be political suicide) it is possible the bank could end up with a stake in the club. Just as with the DSB Bank owner Dirk Scheringa and his club AZ Alkmaar, football has once again proved that it is incapable of being run as a business, now to the extent to which the state may have to intervene by proxy.

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About Me

London, United Kingdom
I'm Lecturer in Management at The York Management School, at The University of York, UK. I teach strategic management to undergraduate and masters students, as well as running the masters dissertation module. My research focuses on business and management history.