Published on: 20 Apr 2018
If you’re a premier league footballer it’s kind of obvious that you’re going to make a lot of money.
Deloitte, the Big 4 accounting company, prepare annual reviews of the Premier League’s finances and has just released some figures from the 2016/17 season.
In total, Premier League footballers took home £2.5bn in wages. This was the highest figure on record and showed an increase of 9% on the previous season.
The increase in wages though was quite a bit lower than the increase in the clubs’ revenue.
Total revenue increased by nearly £1bn to £4.5bn in the 2016/17 season and this was also a new record.
Although revenue increased by a higher percentage than wages, the proportion of revenue spent on wages is still pretty significant with the wage to revenue ratio being 55%.
Collective pre-tax profit was also a new record high being £0.5bn. This was almost three times the previous record of £0.2bn from back in 2013/14.
Deloitte partner Dan Jones said “As predicted last year, the Premier League’s three year broadcast deals which came into effect in the 2016/17 season helped drive revenue to record levels.
“Despite wages increasing by 9% to £2.5bn, this increase is nowhere near the level of revenue growth noted. This relative restraint from Premier League clubs reflects both the extent of their financial advantage over other leagues and the impact of domestic and European cost control measures.”
The financial success was spread across all clubs with all 20 Premier League teams making an operating profit.
Deloitte’s full report on the Premier Leagues finances will be available in June.
Published on: 17 Apr 2018
We’ve all been there haven’t we? Long boring meetings that don’t seem to be going anywhere.
Maybe you’ve tried to give the impression of being interested in what was being said but in reality the meeting wasn’t relevant for you and your mind was wandering to other more interesting things.
Well, if you’re not a great lover of excessive meetings then you are not alone. In fact, you share the thoughts of an incredibly successful and admired business person. Namely, Elon Musk.
Mr Musk’s current business interests include Tesla and SpaceX.
In the past he founded x.com which later became PayPal. Paypal was subsequently bought by eBay for $1.5 billion.
He currently has a net worth in excess of $20 billion.
But what does he think about meetings?
In an email to his staff that was leaked to the electrek website there were a few productivity recommendations:
In the words of Mr Musk, these include:
– Excessive meetings are the blight of big companies and almost always get worse over time. Please get of all large meetings, unless you’re certain they are providing value to the whole audience, in which case keep them very short.
– Also get rid of frequent meetings, unless you are dealing with an extremely urgent matter. Meeting frequency should drop rapidly once the urgent matter is resolved.
– Walk out of a meeting or drop off a call as soon as it is obvious you aren’t adding value. It is not rude to leave, it is rude to make someone stay and waste their time.
– Don’t use acronyms or nonsense words for objects, software or processes at Tesla. In general, anything that requires an explanation inhibits communication. We don’t want people to have to memorize a glossary just to function at Tesla.
– Communication should travel via the shortest path necessary to get the job done, not through the “chain of command”. Any manager who attempts to enforce chain of command communication will soon find themselves working elsewhere.
– A major source of issues is poor communication between depts. The way to solve this is allow free flow of information between all levels. If, in order to get something done between depts, an individual contributor has to talk to their manager, who talks to a director, who talks to a VP, who talks to another VP, who talks to a director, who talks to a manager, who talks to someone doing the actual work, then super dumb things will happen. It must be ok for people to talk directly and just make the right thing happen.
– In general, always pick common sense as your guide. If following a “company rule” is obviously ridiculous in a particular situation, such that it would make for a great Dilbert cartoon, then the rule should change.
Nicely said Mr Musk.
Published on: 22 Mar 2018
We’ve all made mistakes but the key thing is how you recover from those mistakes. ASOS, the global internet clothing company recently made a mistake but recovered from it really well.
ASOS is an incredibly successful company. They sell over 80,000 products on their website and last year had over 15 million active customers and sales of nearly £2 billion.
One thing they are not that good at though is using the spell check function as they printed 17,000 packaging bags with the slogan “discover fashion online” spelt using “onilne” instead of “online”.
Now, what would you have done in that situation?
Would you have ignored it and hoped that no one noticed or cared about it?
Would you have scrapped the bags?
ASOS did neither of those and recovered brilliantly by tweeting:
“Ok, so we *may* have printed 17,000 bags with a typo. We’re calling it a limited edition”.
So, depending on how you look at it you’ve either got a bag with a typo on it or a limited edition collector’s item.
A brilliant recovery by ASOS. Turning a typo into some great publicity.
Published on: 16 Mar 2018
Homelessness is a growing problem in a lot of countries but coffee company “Change Please” has come up with a brilliant business model that could help.
They’ve brought together the problem of homelessness with people’s love of coffee and have created a radically different coffee company that is now looking to expand around the globe.
Their whole focus is on helping people whilst at the same time providing an excellent cup of coffee to the end customer at a fair market price.
When it comes to suppliers, the coffee beans they use are from farms that support local communities. For example, one of their suppliers from Peru helps victims of domestic abuse and a supplier from Tanzania helps people injured by landmines.
Once the coffee beans arrive in the UK, the people who roast them and serve them are people who have been homeless and sleeping on the streets. They are trained as baristas and work at one of the company’s locations. They are paid the Living Wage of £10.20 per hour and are given help in terms of opening bank accounts and finding housing.
Whilst the big coffee chains such as Starbucks and Costa Coffee are discussing introducing recyclable cups, Change Please has beaten them to it as all of their cups are 100% recyclable.
All profits are being invested in helping reduce the level of homelessness.
Things are going well for the organisation and they are planning on expanding the number of locations they operate from in the UK. They are also in talks to open in Australia and America with the same ethos of helping homeless people get back on their feet via a well and truly ethical cup of coffee.
They have also signed agreements with 2 big supermarkets, Sainsburys and Ocado, to stock packets of Change Please coffee beans.
It’s a common sound on the streets of cities in the UK to hear people asking if you have any “Change please”. With this fantastic business model for a coffee company, hopefully it will soon be a common sight to see the request for “Change please” replaced by coffee outlets called “Change Please”.
Published on: 07 Mar 2018
I guess a lot of us have been there – we stagger out of bed in the morning half asleep and get in the shower. Suddenly we start to have some great business ideas and wish we had a pen and piece of paper.
Now, if I’m entirely honest with you this has never happened to me and I doubt it ever will.
The thought usually going through my mind is more of wouldn’t it be nice to have a bit longer in bed rather than be in the shower getting ready for work.
It seems though that not everyone shares my lack of business enthusiasm in the shower.
Marriott hotels in the US undertook research which indicated that half of business travellers felt that their best ideas came whilst showering.
So why all this talk about showers and ideas?
Well, Marriott have turned some of their shower doors into digital notepads.
Yes, after the door steams up, guests can write their business ideas on it (or for that matter draw a rude picture of their boss if they wanted to) and then their completed creation will be emailed through to them.
In the words of Marriott, so that “their brilliance doesn’t wash away”.
I’m not convinced that I have too many moments of business brilliance in the shower but fair play to Marriott for coming up with a clever use of the shower door.
Published on: 21 Feb 2018
It will hardly come as a surprise to you but people aren’t sending as many postcards from holidays as they used to.
Back in 1997 about 70% of people in the UK who went on holiday sent a postcard home to family or friends. That figure has now fallen to 28%.
There are two main reasons for the reduction.
The first is the impact of the selfie generation and the increase in social media. People are posting pictures of themselves on sites such as Facebook or Instagram instead of sending a postcard. After all, why send a postcard of a generic view of the place you’re visiting when you can post a nice selfie of you on holiday on social media.
The second reason for the reduction is the change in the holiday habits of a lot of people. The rise of low cost airlines such as easyJet and Ryan Air has meant that people are taking more shorter breaks rather than an annual 2-week holiday.
If you’re on a short break of a few days why bother sending a postcard from a short break as you’ll be home before the post card arrives.
Unsurprisingly there have been some corporate casualties as a result.
J Salmon is Britain’s oldest publisher of postcards.
Actually, I should rephrase that and say that J Salmon was Britain’s oldest publisher of postcards as it recently stopped producing postcards.
The company has been run by the same family since 1800 but recently stopped producing postcards due to lack of demand.
At the moment the company is still trading and is selling diaries and calendars.
I wish them well but when you think about it, people stopped sending postcards because they could take photos on their phone and post them on social media.
The question is how many people keep their diaries and calendars on their phone?
Will diaries and calendars go the same way as postcards?
Published on: 02 Feb 2018
That’s an interesting question and I’m sure that along with most other professions there are people you can trust and people you can’t trust.
If I asked the question about trusting accountants to the rock band Deep Purple though I’m pretty sure what answer I’d get.
Dipak Shanker Rao looked after the accounts of Deep Purple for more than 20 years.
In fact, to be fair when I said that he “looked after” the accounts maybe I should have said that he siphoned off more than £2 million of the band’s money without their permission.
Mr Rao has admitted “borrowing” at least £2.27 million from two of the companies within the Deep Purple empire. HEC Enterprises and Deep Purple (Overseas) owned the copyright to a lot of the band’s songs but the companies went into receivership in 2016.
Out of the £2.27 million borrowed by Rao, only £477,000 has been recovered. Ian Gillan, Ian Paice and Roger Glover (members of the band) are suing Mr Rao for up to £4 million.
In the meantime, Mr Rao has been struck off as an accountant and banned from managing or controlling a company until 2028.
One of Deep Purple’s most famous songs is called “Mistreated” and I’m sure that they feel that way at the moment…
Published on: 05 Jan 2018
January is one of the most popular months for people looking to lose weight. New Year resolutions often revolve around getting fit or dropping a kilogram or 2.
Losing weight can be big business for companies.
Weight Watchers is one of the largest and most successful companies involved in the business of losing weight. They were founded more than 50 years ago in the living room of entrepreneur Jean Nidetch in Queens, New York and since then have grown to a huge company.
They now have over 1 million active members who attend approximately 32,000 Weight Watchers meetings around the world.
That’s a big organisation and they have just signed up a big star to help with their promotions.
The American music producer DJ Khalad is big in a number of ways.
Firstly, he is one of the largest stars on social media (he has nearly 4 million Twitter followers).
Secondly, he is large in terms that he is overweight.
DJ Khaled isn’t alone in trying to lose weight in 2018 but what makes him different is that Weight Watchers have signed him up as a social media ambassador. He will be paid an undisclosed sum to follow the new Weight Watchers Freestyle programme and will document his progress on his social media accounts.
This is obviously good news for Weight Watchers because it will be great publicity if he loses weight (we’ll ignore for now what happens if he doesn’t lose weight…).
The market also thought it was good news as the shares in Weight Watchers shot up 8% on the New York stock exchange the day his appointment was announced.
Maybe it’s best not to go out for a big meal to celebrate though…
Published on: 27 Nov 2017
It may be stating the obvious but if you’re a retailer in a shopping centre you’ve more chance of making a sale if people are in the shop.
Retailers in shopping centres face a number of threats. Some of these are a more recent phenomenon (e.g. the rise of internet shopping) whilst others have been around for a number of years.
One of these threats which has been around for a while is something which I’m sure a number of our male readers can sympathise with.
Let me ask the male readers out there who are married a question – have you ever gone shopping with your wife and at the start of the shopping trip things were going well but it soon descended into a long and windy journey through shops which to the male eye looked very similar but to the female eye were all different and offered new and exciting opportunities to try new items of clothes?
With the wife enjoying every moment but the husband getting more and more frustrated it is only a matter of time until stress levels rise, an argument ensues and the shopping trip is cut short.
A number of shops have chairs for the men to sit on and magazines to read but over in China, Shanghai’s largest shopping centre has come up with a novel way of keeping men occupied so that the wives are free to shop without the husbands getting bored.
Global Harbour shopping centre has introduced “Video Caves”. These are glass booths with a comfortable chair, a games console and a large screen. Men can be left to play computer games free of charge whilst their partners can shop to their heart’s content. The booths are soundproof so the computer games won’t disturb the other shoppers.
All in all, a great idea to keep the both the “lady shopper” and the “dragged behind man” happy but is there a potential problem?
After all, if you ask a lady how easy it is to get her other half off of a computer game when he’s nearly reached his top score, will we start to see women looking bored whilst waiting for the husband to finish his video game…
Published on: 20 Nov 2017
Language schools are big business. Research from the British Council predicts that more than 1.9 billion people will be actively learning English around the world by 2020. That’s a lot of people but will a recent bit of technology result in a change in the number of people learning another language?
A small US start-up company has recently launched a translation earphone.
Waverly Labs has introduced technology that may be the first step in making the need to learn another language redundant in years to come.
They have launched a translation device which is similar to a wireless earpiece. The earpiece is linked to an app on a mobile phone and when one person speaks in for example French the words are processed by software so that the words are played back in the earpiece in another language such as English. The impressive thing is that the translation is in real time with only a few seconds lag.
The first batch of headsets will support English, French, Italian, Portuguese and Spanish languages.
More languages are expected to be rolled out soon.
Whilst there are already translation devices on mobile phones such as Google Translate, the Waverly Labs product is the first that offers a discreet earpiece to translate so that a face to face conversation can be held without having to look at your mobile phone to understand what is being said.
The earpieces can be pre-ordered for $249 and could well be the first step in terms of making face to face communication between different languages a lot easier.
All in all, very nice.
Or should I say, très agréable, sehr schön, molto bella, muito agradável, muy agradable.