Arsenal FC Could Be the Financial Power in the English Premier League

In a recent interview on the BBC, Barry Hearn, the chairman of Leyton Orient, stated that Arsenal was the club that all other clubs should try to emulate in the terms of their financial model.

Granted, this model is not working at the moment, but in the long term, Arsenal will be the richest club in the world because they have lived within their means for a period, done their penance and will be able to prosper.

In early 2001, Enron was a company that employed and headhunted the brightest and best financial players in the marketplace. They were consistently ranked as one of the top energy companies in America. In late 2001, they collapsed and filed for bankruptcy.

My point is that no one is immune. A club has to operate as a business if it wants to maximise its output. Manchester City are a key example of this. Money doesn't last forever. If City were to be viewed as a company, they would be laughed at. Nobody can consistently lose money.

On top of this, the new Financial Fair Play regulations will have a major impact on clubs such as City and Chelsea. They will no longer be able to overextend themselves, but instead will have to concentrate on other areas of the clubs so as to maximise their returns annually.

Of course, this has no effect on Arsenal if they cannot maintain a Champions League position, and reap the financial rewards which it brings, and which is so paramount to a top-four club's success. It is for this reason that Arsene Wenger needs to take some risks.

Playing the safe game will only bring you safe results. There is no doubt that Arsenal are financially strong. But unless Wenger is prepared to use some of the funds which we know have been amassed over years of clever wheeling and dealing, then Arsenal could slide back onto a slippery slope. And once there it'll be difficult to get back to the pinnacle of English football.

Nasri must stay. Or at least Arsenal needs to gain the perception that they are willing to spend to win. Fans can only take so much. Perception is crucial to the revenue generated elsewhere in a club. If Arsenal begin to be perceived as a club such as Liverpool, that they can make the highlights reel but never stand on the podium at the end of the season, then Arsenal will slide. 

And, as anyone who has sat through a math or physics class on parabolic motion knows, the slide will get quicker and steeper.

The irony of Barry Hearn's comments and Arsenal's position is not to be forgotten. This is a man who has always emphasized financial safety but is chairman of a club that has never even glimmered or made a serious bid of promotion. Risks need to be taken. Money must be spent.

It is all well and good to continue generating teams of youth and flair, but if clubs such as City and Chelsea have succeeded in circumventing the rules (and let's be realistic, the chances of UEFA banning clubs such as Barcelona and Chelsea are minuscule), then this will all be to no avail.

So here's my list. If Arsenal is to reign supreme as a business and as a club, then these things must be done:

1. Keep or adequately replace Nasri. And don't sell him to United.

2. Invest in players. Invest in a centre back more specifically. The deal for Cahill and Samba seemed done three weeks ago.

3. The wrong player isn't always the wrong fit. Perception is everything. By the reports, with Nasri seemingly wishing to leave for United, Arsenal has appeared as the little brother, having had his candy stolen.

4. Keep Wenger. Stability is crucial even if risks are taken. The board have the power to give him a re-directive, change his plans. The man is still a genius.