Wengernomics - Dogmatism or Pragmatism?

Similarities between Arsenal 2011 and Communist China?



Wengernomics - Dogmatism or Pragmatism?

Chairman Mao – Might as well have been Arsenal boss since 2005


(Ed’s note – This piece submitted last Wednesday morning, before the FA Cup exit at Old Trafford)

I’ve never been one to use Twitter. I’m not adverse to social media but the Twitter phenomenon has largely gone over my head. However on reading the Independent Newspaper back in February, the section of the paper that highlights famous people’s ‘Tweets’ had highlighted ’comedy writer Armando Iannucci’s comment which read: ‘Back in the UK. Sad to see it’s still run by dogmatists masquerading as pragmatists, but at least it’s sunny’. For footballing reasons at least, this ‘tweet’ had stuck in the mind and came to the forefront again today just as the Arsenal side touch down back in London after their latest Champions League exit to a genuine European Superpower. The argument over whether Arsenal is run by Dogmatists or Pragmatists has been a long running debate in the Gooner - both in print and online for a good few years now. Arsene Wenger - proud owner of a Masters Degree in Economics from Strasbourg University - has over the years developed his own economic model on how to run a football side which has been lauded in many quarters, including my very own contributions to the Gooner over the last three years.

In 100% honesty though, my knowledge of Economics is basically knowing the difference between Adam Smith and Karl Marx and that John Maynard Keynes sits somewhere in the middle of the two. One thing I do know however is that the thin line between dogmatism and pragmatism is often a very narrow one that can be blurred in the eyes of many. The fact that ‘Wengernomics’ has achieved thirteen successive Champions League qualifications on the bounce even in the stormy economic conditions of the last few years and with the market distortions caused by Manchester City and Chelsea’s petrodollars, means that as a model for stability it is second to none - in the last six or seven years however there is little if any evidence as to whether it can be seen as a sufficient model for growth and prosperity for a football club’s fortunes on the pitch.

Being a graduate in Economics Arsene Wenger would no doubt have paid close attention to the emerging Economic superpower from the East - the People’s Republic of China, that very much threatens to overtake the USA’s economy in the very near future. China’s rapid progress can be traced back to changes made by Deng Xiaping’s leadership from the mid 1970s through to the 1990s. Prior to this China had been in the midst of its ‘cultural revolution’ unleashed by Mao Tse Tung with the purpose of modernising its economic infrastructure - which was enthusiastically pushed by a group of young activists called the ‘Red Guard’ to effectively remove any ‘capitalist tendencies’ from Chinese life. This meant effectively eradicating what Mao called the ‘Four Olds’ - Old Customs, Old Culture, Old Habits, and Old Ideas. Old was loosely defined as anything existing prior to Mao’s Communist revolution of 1949. In an attempt to win the laziest pun of the year award, I’d be quick to point out that Wenger has brought a positive ‘cultural revolution’ of his own to Arsenal since 1996. Conversely he has also in the years since dismantled a ‘four olds’ of his own along with their customs, culture, habits and ideas - namely the aging back four that won his first double. Also in recent years he has moulded a youthful ‘Red Guard’ of his own which seems to be well indoctrinated with questionable dogmatic Wengerite ideology to boot.

By the time of Mao’s death in 1976 China’s attempts at anything closely akin to a modern industrial revolution had failed and with it so too did the lofty aims of the ‘cultural revolution’. Deng had launched the ‘Beijing Spring’ in 1977 - a period in which open criticism of the regime’s previous excesses and the cultural revolution itself had been permitted. By 1982 Deng’s Central Committee had released a document entitled ‘On the Various Historical Issues since the Founding of the People's Republic of China’ which in reference to Mao had stated that ‘His accomplishments must be considered before his mistakes’ (sound familiar?) however concluded that his impact on China had been ‘seven parts good three parts bad’ (which could often be an appropriate remark on Arsenal’s outfield players when you think about it).

On Deng’s watch economic reforms had increased capitalist elements, while maintaining Communist-style rhetoric. The explanation behind allowing the Communist dogma of the Cultural Revolution to be consigned to the dustbin of Chinese history, in Deng’s own words, was that ‘it doesn't matter whether a cat is white or black, as long as it catches mice’. I don’t know about Mice but Moths seem to be the major problem effecting the Arsenal trophy cabinet in recent seasons and with this point in mind Wenger should certainly look to be a lot less fussy about what methods lead to their eviction from the empty trophy cabinet.

What Wenger can learn from the Chinese example is that sticking to principles rigidly isn’t always a good thing if you want to achieve stable growth and reach the pinnacle as a major superpower. I genuinely love the fact that Arsenal play fantastic football, I genuinely love the fact that the early Wenger years saw a team of winners playing great football - far more than the latter Graham years that saw a team of unwatchable winners. Trouble is Arsenal display an incredible level of arrogance when referring to the likes of Stoke as ‘limited’. Arsenal’s football maybe easier on the eye, but their lack of a Plan B and unwillingness to win ugly, coupled with their ability to pass the ball to death often with no cutting edge or end product is every bit within the dictionary definition of ‘limited’ as Stoke’s reliance on the long throw of Rory Delap or the thuggery of the likes of Ryan Shawcross.

Down to ten men in the Camp Nou, outplayed but one goal from eliminating their technically superior opposition with time ebbing away - I surely could not have been alone in screaming for us to utilise our 6ft 4in centre forward by going route one for once? Especially seeing that Barcelona also seem to have a similar weakness to ourselves for outplaying sides and still losing. In 180 minutes of play at Ashburton Grove over the past two seasons Barca held two thirds of possession and the result is an aggregate score of 4-3 to Arsenal over the two games. Also Inter’s share of possession in last year’s semi couldn’t have been much more than our own on Tuesday night but they came away with the result.

What about the argument that Arsenal have limited funds due to paying off the mortgage on Ashburton Grove and can‘t compete with other top sides in the transfer market therefore are perennially at a major disadvantage in comparison until this millstone is removed from our necks? Well here we have part two of this very crude macro-economic come history lecture. It is an MI5 maxim that any society is never more than four meals away from anarchy, a point excellently illustrated in North Africa in the last three months alone. Arsenal’s wage bill means the idea that any of Wenger’s side will be ever be deprived of four meals is extremely remote, however ‘Wengernomics’ has a similar maxim - Arsenal are quite clearly never more than four injuries away from mediocrity. Also, like with the Libyan economy, Arsenal’s relatively abundant resources make it baffling to the outside world that a starvation diet is the order of the day - why is this wealth not trickling down considering that Arsenal have consistently recorded profits over the last few years?

Also the idea that Arsenal’s inability to sign one or two big name players of experience over the last two transfer windows due to their hands being financially tied is based on false economics. Any big name signing made at the market rate can easily pay for itself should it result in some form of on pitch success. Last season the club’s turnover from the football side of its business was marginally down due to five fewer home cup matches, yet a bigger squad to cover this may have meant a longer FA Cup or League Cup run.

Also the further a side progresses in the Champions League the more it reaps in prize money, Arsenal’s early elimination and inability to top their group in the first phase due to being one or two top class players short means they will reap less out of this campaign than they did in reaching the Semi and Quarter Finals in the last two seasons, so consequently they haven‘t saved much from supposedly avoiding profligacy in the transfer market. Prudence with the purse strings also doesn’t count for much if you’re profligate on the pitch. ‘Chesney’, Koscielny and Fabregas may well be three key parts of this current side, however one defender and goalkeeper unable to communicate amongst themselves at the back and a captain who deems it necessary to try a backheel on the edge of his own penalty box has meant two trophies from a possible four are no longer obtainable this season.

Also Arsenal had received less from merchandising, attributable to the recession. Surely this and other elements of fallout from the economic situation are both out of Wenger’s control and also a good reason to be tighter with the purse strings? Well - again I’ll answer this with another piece of crude economic thinking. You’ve heard of ‘Pop Psychology’ - psychological concepts that are generally dismissed by the scholars as oversimplified, unproven, misunderstood or misinterpreted despite attaining popularity among the general populous - well I’m endeavouring to indulge in ‘Pop Economics’ (in more than one sense of the word) and the scholars can argue amongst themselves as to whether they think them workable or not.

For my example of recession busting economics I point to what I would call the ‘Jackson Effect’. In 1982 Michael Jackson’s album Thriller was released amid what was then America’s longest and deepest post-war recession, which had deeply effected its recorded music industry seeing that LPs are considered a luxury item rather than one of life’s necessities. Thus there was what the economists would call ‘income-related elasticity of demand’ - i.e. less taken home in the wage packet means less to spend on records. Despite this recession, the extraordinary buzz surrounding the album due to critical acclaim and its extravagant promo video had led to Thriller becoming the biggest selling LP of all time and single-handedly overturning the recession itself within the recorded music industry by 1984.

His death in 2009, amid another global recession as bad as the early 80s one, saw not just another glut of record buying with his back catalogue shifting units, but also overturning a downturn in the publishing industry as newspapers and magazines in their saturation coverage of his premature demise shifted far in excess of what they otherwise would have done. The lesson learned from the ‘Jackson Effect’ is that hype is recession proof - major events can often overturn the elasticity of demand rule for luxury items, giving the consumer the impression that the item’s consumption is itself a necessity.

The long wait for an Arsenal title since 2004 or a once in a lifetime Champions League triumph would no doubt fly in the face of recession and see a rush to buy merchandise as well as a glut of season ticket and membership renewals as a result. Critics of this theory may point to the fact that Arsenal won the double in 2002 and still made a loss, today however we have far bigger stadium capacity and a fan base slightly less accustomed to success than they were in 2002. Arguably Stan Kronke’s inclusion on the board means we’re more clued up about exploiting overseas merchandise than we were in 2002.

Another lesson from the world of popular music is that a sizeable amount of its leading lights throughout its history - such as Bill Haley, Bill Wyman, James Brown, Jimmy Page, Freddie Mercury, Joe Strummer, Bob Marley, Debbie Harry, Ian Dury, both of the Pet Shop Boys, Ian Brown, Shaun Ryder, Jarvis Cocker and Noel Gallagher - were all over the age of 25 when they came to prominence. The moral of this fable is that what appears on the surface to be a youth led phenomenon usually isn’t quite so and often is the result of the stars spending several years toiling around the outposts of their chosen industry whilst learning their trade.

Alan Hansen famously remarked in 1995 that you never win anything with kids, contrary to popular myth he was actually proved right, seeing that Fergie's so called Fledglings were a mixed economy of youth and experience. In the 1996 FA Cup final which sealed the double that year for United, their side included 33 year old Peter Schmeichel, 30 year old Dennis Irwin, 31 year old Gary Pallister and was captained by 30 year old Eric Cantona - all of whom had several winners medals to polish and no doubt quite a few war stories to tell young Giggsy, Becks, Gary Neville et al. Also despite GG’s first championship side having an average age of just under 25, the road to Anfield ’89 was paved by the contributions of those pushing 30 years of age such as Viv Anderson, Kenny Sansom and Steve Williams in the years just prior, as well as having 31 year old David O’Leary in defence and in 27 year old Kevin Richardson a previous championship winner with Everton in the starting line up.

So then, today it’s March 9th and we’re just twelve days short of the first day of spring. Of the quadruple that was still up for grabs two weeks ago we’re two down, two left to play for. The luxury that Wenger has is that unlike Chairman Mao, he has the opportunity not to wait until he himself is history to enact his very own ‘Beijing Spring’ here and now in the Arsenal dressing room. He is contracted until June 2014 and has the opportunity to reassess to what extent his ‘Wengernomics’ programme is grounded in dogma rather pragmatism and do something tangible to rectify the situation if not by May 2011 then certainly by May 2012. And in a reversal of Margaret Thatcher’s famous dogmatic ‘U-turn’ boast from the 1980 Conservative conference: Mr Wenger - you stick if you want to, the Arsenal public who pay your wages seem to be increasingly interested in turning. And in increasing numbers they seem to have been turning on you and your modus operandi for a good few years now.


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15
comments

  1. Robert Exley

    Mar 21, 2011, 20:43 #3970

    Joe - again, I don't recall saying Wenger should be throwing money around to sign Messi and Ronaldo. Arsenal don't really need a massive overhaul in terms of personal. They need a few experienced signings fill the dearth of experience they have in the side within the market rate, that should have been done incrementally over the past few seasons. In some cases the odd Kevin Richardson style signing which GG carried off may also be what's needed rather than a big money signing. In some cases its also more rigidly sticking to one style of play, overdoing it with the endless passing and ignoring the need for grafters or people who just lurk around the box to finish off.

  2. Joe Fitzpatrick

    Mar 19, 2011, 3:32 #3811

    obviously you are an intelligent man but please tell me where you get the idea that Arsene Wenger in any way dictates or even sets financial policy at Arsenal F.C. Surely it's the board members that decide how much Wenger gets to spend? If you offered him schweinsteiger or messi or Ronaldo tomorrow and it didn't completely fuck us financially would he say "no thanks mate, I've got Eboue, Diaby and Denilson"

  3. bahatikazi

    Mar 18, 2011, 19:46 #3798

    Wenger, you need to read between the lines. This a well thought out piece of advice. You cannot expect to win trophies with the likes of Bentner and Diaby. These two guys you need to offload them, foryou have given them alot of chances on the pitch at the expense of the wins. For exampple, Diaby is a defensive midfielder who should provide cover to the back four. He seems to lack ideas-- whenever he gets the ball, 90% of the time he passes it either to the keeper or any of back four and his passes are inaccurate, often intercepted by the opponents. this creates unnecessary pressure to the back four. when he loses the ball he cant chase.And Prof Wenger will chose him ahead of other more committed and serious players. As for Bentner he plays like a 'king'---always not getting to the end of the passes to him, and whenever he manages to get to the ball, 60% of the time he passes back from the 18 yard box to the team-mate outside the eighteen instead of trying to finding a away through the opposing defense and then try a shot. He too doesn't chase a ball when he loses it to the opponent. Yet these are the kinds of players that Wenger sticks too. Surely Wenger, it baffles fans about your team selection ---it seems you love it when Arsenal loses e.g. you will see that a particular play has not had his day in match and you still keep him on the pitch up to the 80th minute, when there are options on the bench. why do you delay yours substitutions? You are the coach and you see a player misfire from time to time and all you do is complain to yourself on the touchline instead of pulling a struggling off and bring on another. Do you fear to upset such players or you go numb when you are on the touchline. Diaby and Bentner are abusing the Arsenal jerseys through their bad attitude while on the pitch and should be offloaded. They should be able to fight like the rest. In Wenger, Arsenal has a problem and not in the players apart from Diaby and Benrtner. These two guys think they are world class and yet they don't deserve to play for a first world club like Arsenal except under their 'parent' Wenger. I am sure these two guys would be luck to get starting berths even in championship clubs. We the fans needs trophies yesterday.

  4. Robert Exley

    Mar 16, 2011, 0:31 #3589

    well Amos - every other poster here, be they praising or criticising the article, have all recognised points made within the article. If you've failed to find any, well, lets just say I wont be losing sleep over it. How can I question whether Wenger's way of doing things since 2004 isn't a model for growth? er...maybe the on the pitch stagnation of the last six years is the elephant in the room with regard to that point. As for Obfuscation? (which for those who don't know means the concealing of your intended meaning in your mode of communication) - yes you're right my articles are full of secret messages subliminally passed on to the reader. If you read this one backwards it says 'Here's to my sweet Satan. The one whose little path would make you sad'. Looks like you've rumbled me there Amos!

  5. tpm

    Mar 15, 2011, 14:01 #3555

    haha amos gets pulled up for spouting rubbish then completely fails to acknowledge that!!

  6. Amos

    Mar 15, 2011, 2:22 #3519

    I don't think that you could blame anyone for missing the point in such a convoluted diatribe assuming they were fortunate enough to find one at all. Even your justifying response is an overwordy exercise in obfuscation. "consequently they haven‘t saved much from supposedly avoiding profligacy in the transfer market" is an example of a typically obtuse criticism of a lack of spending in your understanding of Wengernomics. Is Wengernomics a strategy for growth????? Is that a serious question? Do you really not have any understanding at all. whether you measure financial performance or asset and resource development or standing in world football, of how Arsenal has grown over the last decade? The whole thing would make far more sense if you were asking whether Wengernomics was a strategy only for growth. I can appreciate the effort you have put in to your but really it's a load of pretentious pseduo-intellectual claptrap.

  7. Gus

    Mar 15, 2011, 1:05 #3518

    I think you misunderstand me Robert. I appreciate some of the points you've made here while your Deng quote 'it doesn't matter whether the cat is black or white as long as it catches Mice' perhaps summarising our sides rigid methodology beautifully well. But when I saw the article on the homepage I found it amusing. Maybe I do take it too seriously but your right in it showing versatility I suppose. Made me laugh whilst appreciating some valid points! In all honesty though I do wish we could just moonwalk to the league title ya' know....

  8. Robert Exley

    Mar 14, 2011, 22:07 #3516

    Gus - It's just an analogy, if you think I'm comparing Wenger's failure to secure a trophy to Mao's killing 60 million Chinese citizens you're taking it a bit too literally. In fact if you've taken that point literally I'm surprised you've not interpreted the 'Jackson Effect' analogy as 'learning the moonwalk will win the Premiership'. Some have praised the article, some like you may laugh at it - each to their own. The fact people can both laugh at it and take it seriously shows the benefits of versatility - something Wenger should realise when 600 passes fail to achieve a goal. As Deng Xiaping once said - 'it doesn't matter whether the cat is black or white as long as it catches Mice'.

  9. tpm

    Mar 14, 2011, 21:26 #3514

    amos what bollox you spout, where on earth does anyone say we should outspend chelsea et al??? people just say we should spend what we have rather than competing with 1 hand tied behind our backs when we dont have to, just to satisfy one mans project. how do you know the club has no money...aw and the board have all said we do. and how can you say players 'you hope we need', your one of the reasons the club is where it is - a myopic view that nothing is wrong and we dont need any new players

  10. Robert Exley

    Mar 14, 2011, 21:10 #3513

    Amos - if there was a gold medal for missing the point you'd win it hands down. Where have I asked Wenger to spend money he hasn't got, let alone go on a Man City/Chelsea style spending spree? If you read through the article I've praised Wengernomics as a model for stability, I've questioned whether it's a model for growth. Arsenal have recorded profits over the last few years, it's easily viable for them to have brought in a couple of experienced players over the last few years at the going rate. Also what Wenger has saved in the transfer market is roughly equal to what he's failed to reap in a different channel. If your squad is too light to come 1st or 2nd you reap less EPL prize money when coming 3rd or 4th. Similarly if you come fourth you don't get the extra merchandise and season ticket and membership renewal income that winning the title brings. If you fail to win your CL group and get eliminated in the 2nd phase, you reap less than a side that won its group and got to the QF or beyond. If your side isn't big enough for a decent cup run, you reap less in gate receipts from the extra games played when you progress. As for currently being second, if your happy with that then that's up to you. This current side should have been at least six points clear by now, but for their profligacy on the pitch - such as losing a two goal lead to Tottenham, losing a four goal lead to Newcastle, an underwhelming performance at OT in December, Newcastle at home, WBA at home...I could go on! If coming 2nd or finishing runners up was Arsenal performing to the maximum of their potential it would be bearable - but it isn't, it's Arsenal underachieving in relation to their potential and that sticks in the craw! Again the Barca example is irrelevant. Arsenal were one goal from eliminating them, yet pass the ball ad infinitum without shooting and surprisingly we don't find the crucial goal - we play one way and have no plan B and too often have no cutting edge where it matters. Which is why the financial fair play rules isn't going to benefit Arsenal when on the pitch while they are the polar opposite to Wenger in the transfer market - squandering overwhelming possession or gifting goals through poor defending - not to mention backhealing on the edge of your own penalty area! Again if this was a transitional phase for a season or two (or even three) you would live with it, but we are seeing the same mistakes made in the last two weeks as we've seen for the last 4 or 5 years. If the man at the helm cannot realise where the failings are by now you have to question whether he is still the right man to run the show. I'd dearly love Wenger to carry on being successful because of his past achievements - sadly that's looking less likely by the day. If that's a critique you don't like then I'm very sorry - I don't write articles for universal approval. But I think I've proven my view to be one grounded in reason - now the ball is in your court to prove to me yours isn't one grounded in blind faith.

  11. Rev.Tony A.

    Mar 14, 2011, 13:47 #3493

    It is refreshing reading an intelligent piece from one who loves to watch and support the intelligent football club. Hope to respond fully later. Good Work. Keep it up.

  12. Gus

    Mar 14, 2011, 11:27 #3484

    I'm sorry but I can't stop laughing! I appreciate the points your trying to make but attempting to compare Mao's China with ANY football club is, well, I don't even know how to put it! Bonkers? Do you even know what the cultural revolution was and it's human costs? Again I understand what your trying to get at with the article but the analogies are so bad! So bad it's funny!

  13. Nick

    Mar 14, 2011, 10:51 #3480

    A well written well thought out article i find myself agreeing with almost every word

  14. Hendrix

    Mar 14, 2011, 10:26 #3476

    Culture is everything. Nice and big post.

  15. Amos

    Mar 14, 2011, 10:24 #3475

    What a lot of words to say that you want Wenger to spend money he doesn't have on buying players you hope we need in the hope that somehow outspending Chelsea, Man City, Liverpool et al will ensure we are higher in the league than those clubs. After all 'Wengernomics' only has us 2nd behind recently low spending ManU having played one game less. Of course if Wenger had spent more money than Barca, the worlds 2nd/3rd highest revenue generator in football it would have guaranteed that we would have beaten them. This whole piece is based on the false assumption that somehow 'Wengernomics' is the perverse way to run a football club and that Uefa financial fair play rules will not change anything. Nevertheless they are they. What you should be asking is how long can it be before every other club has to adopt Wengernomics as their financial model not how long Wenger can hold onto all too rare financial common sense.