With the race for the English Premier League title going down to the wire, we’re going to take a look what the top EPL managers can teach us about investing.
Fans of English football have certainly been in for a treat so far this season with a genuine title race showing no signs of slowing down and an intense battle for the remaining two Champions League places growing fiercer with every passing week.
Regardless of which club you support, or whether you’re a casual fan who just happens to like watching football, then chances are you’ve been thoroughly entertained by the football that Manchester City and Liverpool have been churning out every week as they fight tooth and nail for the coveted EPL trophy.
However, if there’s one thing the English Premier League is renowned for, it’s the eye-watering sums of money that clubs spend on players, wages, agent fees and more that make the EPL so glamourous in comparison to other leagues in Europe and around the world.
But all this money floating around requires someone at the helm ensuring that it’s invested and managed the right way so that everyone from the clubs to the fans to the players and the staff can reap the benefits. This is where club managers come in, and if there’s one thing we can learn from the top EPL managers, it’s how to manage money and how to invest it the right way.
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So, without further ado, here’s what we can learn from them about managing money and also maybe learn from their mistakes as well.
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Jurgen Klopp
Ever since Jurgen Klopp took over at Liverpool a few seasons ago, he has revolutionised the club from the inside out and has turned a sleeping giant into a force to be reckoned with once more.
With Liverpool going neck and neck in the title race this season, the hallmark of Klopp’s tenure so far has been his shrewd eye for a bargain on one hand, and his propensity to spend big on players that he’s sure will make a significant difference.
If we apply this principle to investing, we can create a portfolio that contains a mix of investments that will give us the best returns possible. On one hand we can invest a substantial chunk of our money in funds that have a good reputation and have shown consistent returns, while mixing it up with investments that are relatively ‘unheard of’, but show massive potential.
This of course depends on how well you research market trends so you can spot a good investment at a low cost that will yield you great returns over time, which is exactly what Klopp has done with some players in the Liverpool squad.
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Mauricio Pochettino
If there was ever a manager who can make the most out of what he has with absolutely zero investment, it’s Tottenham Hotspur’s manager Mauricio Pochettino. The fact that Spurs are firmly seated in the top four of the Premier League and in the quarter-finals of the Champions League after having spent absolutely no money during the pre-season, shows that Poch, as he’s affectionately referred to, is a master at getting the most out of his existing squad.
Similarly, even if you don’t have money to invest, you could certainly make the most of what you have by moving some of your funds into a Fixed Deposit or a Recurring Deposit so you can make your money work for you and still fetch you returns over a period of time. It’s all about setting realistic financial targets for yourself and figuring out the best way to achieve them.
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Jose Mourinho
While Mourinho is certainly one of the most decorated managers in the history of the game, his stint at Manchester United can only be deemed a failure since he failed to get the most out of an expensive squad and failed to stop the rot before it was too late. A combination of overpaying for new players coupled with an extremely pragmatic tactical approach only served to distance Mourinho from the fans, which eventually led to his sacking.
But what can this teach us about money management and investing? For one thing, it’s important to note that just because you have money to invest doesn’t mean you blow it all on investments that don’t have a history of fetching good returns. Sure, maybe you’re taking a risk based on the potential you see, but when it comes to your money, taking a calculated risk is generally the way to go.
Also, keep in mind that having a lot of money doesn’t mean you don’t need to manage it well. Spending frivolously could see you deplete your finances in no time, which will leave you with nothing to bank on.
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So, the next time you watch a game of football, see if you can apply any of the principles and tactics of your favourite football managers into your own financial game.