6 Financial Lessons The EPL Has Taught Us So Far

We’re three-quarters into the English Premier League season and there’s no denying that the action has been as riveting as ever. With every weekend throwing up one pulsating match after another, this is turning out to be one of the most competitive seasons in years, prompting Credit Card users all over the country to get themselves digital subscriptions and HD set-top boxes.

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Sure, Chelsea may already have one hand on the Premier League trophy at this stage, but there’s an absolute melee behind them with at least five teams scrambling all over themselves to catch the league leaders.

So, regardless of which club you happen to support, here are six financial lessons the top six Premier League teams have taught us so far:

• Chelsea

Even the most cynical football fan will have to admit that Chelsea have been an absolute machine this season. The Blues endured a rocky start to their campaign, but thanks to Antonio Conte’s managerial prowess, they turned the corner and put together a winning run that practically defied belief.

And, as it stands, they are now odds-on favourites to lift the title with less than a quarter of the season to go.

Financial Lesson – Take A Calculated Risk

Antonio Conte realised fairly early on that things weren’t going according to plan and decided to revamp his initial system, preferring to play with three at the back instead. It was a calculated risk that has since paid massive dividends.

Similarly, when it comes to investing your money, it is imperative that you identify Investments that aren’t really working for you at an early stage. You certainly don’t want to be saddled with stock that isn’t giving you anything in return.

Make an informed decision, and if necessary, take a risk that you think may pay off. For all you know, you could see massive returns in a short span of time, just like Chelsea have.

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• Manchester City

While City were the bookies early season favourites, Pep Guardiola’s squad has flattered to deceive for much of the season after a blistering start to their campaign. With a squad that boasts some of the finest young talent on the planet, along with more than a few players that are well past their best, City have been inconsistent to say the least.

However, with Guardiola boasting a reputation as one of the finest managers in the modern game, there’s every chance they could still turn the corner and make a late surge for the title.

Financial Lesson – Have Patience

Unlike Antonio Conte, Guardiola continued to put faith in a squad and a system that showed the cracks of imbalance after an encouraging initial spurt. While the season may still be a write-off at this point, City will certainly give him time and money to revamp his side come next year.

After all, with his experience, there are certainly more chances of him getting them back to the top sooner rather than later.

Similarly, when it comes to managing our Investment portfolios, placing our trust in a good financial advisor or Mutual Fund manager is of vital importance. Even though it may seem like some Investments aren’t really working, your fund manager may have already identified any shortcomings, while at the same time investing your money in avenues that will fetch long-term gains.

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• Arsenal

What can one say about Arsenal that hasn’t already been said a million times over. Always the bridesmaid, but never the bride. It’s been almost a decade and a half since their last title and the pressure placed on Arsene Wenger by the supporters has reached boiling point.

With Arsenal, every day is Groundhog Day. Always doing just about enough to stay in contention for the title, but just never moving forward when required. With a squad that perennially seems to be a player or two away from challenging for top spot, it remains to be seen whether the club will continue in this perpetual state of ‘limbo’ beyond the end of this season.

Financial Lesson – Don’t Be Ultra-Conservative When Investing

If you’re looking to grow your wealth and reap good returns on your Investments, then being extremely conservative with your money certainly isn’t going to help. Keeping your cards too close to your chest out of fear of failure may see you remain anchored in the same financial position for years to come. You won’t really lose any money, but you won’t make that much either.

Therefore, it is important that you take a leap into uncharted financial waters every now and then to maximise your gains. If not, you could be left in the dust by other investors that decided to take a gamble when you turned a blind eye.

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• Liverpool

There was a wave of optimism this time around for the Reds, considering the feel-good factor Jurgen Klopp brought with him. Unfortunately, things have gone a bit belly-up since the turn of 2017. Liverpool got off to a blistering start during the first half of the season, tearing teams up for fun, but the New Year hasn’t been kind to them whatsoever.

A major factor contributing to their current slump is Klopp’s apparent refusal to strengthen the squad during the recent transfer window, instead putting all his faith in his current but limited squad.

Financial Lesson – Don’t Put All Your Eggs In One Basket

By placing all his trust in a threadbare squad, Klopp has unfortunately run the team into the ground due to their high-pressing system. With no backup, and inadequate alternatives, the Reds’ season seems to be unravelling at an alarming pace.

Similarly, it is extremely important for you, as an investor, to place your money in diversified asset classes. Your investment portfolio should have a mix of long-term investments as well as short-term liquid funds.

This will help you ride out any market slumps that may come your way and prepare you for unforeseen financial emergencies as well, should the need to liquidate your investments arise.

Additional Reading: Do Not Put All Your Eggs In One Basket!

• Tottenham Hotspur

Although Tottenham missed out on the title last year, and were summarily written off this year, Mauricio Pochettino has proven to be a force to be reckoned with. Not only has he solidified the squad with some shrewd buys, but he has also managed to tighten an already formidable defence.

In terms of squad strength, Tottenham boasts one of the most balanced sides in the Premier League. By identifying key areas that needed to be strengthened, Spurs have emerged as one of the few genuine challengers to Chelsea’s sprint towards the title.

Financial Lesson – Stick To A Tight Budget And Balance Your Portfolio

If you’re looking for sustainable and substantial financial growth over both the short as well as the long term, then Spurs are the team to take tips from. Even if you seem to have a solid budget in place, there is always room for improvement. Make your budget as watertight as possible to prevent any unnecessary spending.

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And while you’re at it, make sure that you balance your portfolio according to your risk appetite. With a good balance of Equity Funds, Debt Funds and cash, you could earn excellent returns over a prolonged period. Combine this strategy with a tight budget and you’ll be sitting pretty for years to come.

Additional Reading: An Introduction To Balanced Funds

• Manchester United

And finally, the Red Devils and chief whinger, Jose Mourinho. Manchester United were touted as favourites for the title along with Manchester City, mainly due to the appointment of Mourinho as well as the absolutely eye-watering amounts of money they spent on more than a few players.

But, instead of spending to cover up deficiencies within the squad, Mourinho chose to spend big on ‘big-name’ players. However, it hasn’t gone according to plan as they currently sit in 6^th place in the league. Unlike Tottenham, who opted for balance, United and Mourinho have spent big in the hopes of landing the title at the first time of asking.

Financial Lesson – Do Not Invest In High-Risk Assets For A Short Term Goal

If there’s one thing to learn from United’s faltering season, it’s the fact that haste almost always makes waste. If you think investing in high-risk assets will lead to instant wealth creation, then you’re sadly mistaken.

Investing in Mutual Funds and similar avenues requires a lot of patience and persistence in order to fetch you substantial returns. Instead, investing in debt funds for the short term may work out in your favour, especially if you insist on relying on that strategy to meet your goals.

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So, there you have it. Next time you pop open a beer and get comfortable before the next round of Premier League action, take a look at how you’re placed financially depending on which team you support.