Bolton

I may not be entirely right yesterday; some calculating football clubs do strategically recruit famous players before they retire – at a bargain price, of course.

For example, seasoned football fans may remember Bolton FC. In spite of its tight budget, it did attract a number of famous players during the years when it was staying in the English Premier League. Although they may not be in the prime time of their career, fading stars do help the reputation as well as the box office of the club. Nevertheless, it is a strategy to survive in a difficult position, not one to prosper and excel. In fact, Bolton struggled to stay in the Premier League for many years, but was relegated to the League Championship in 2008.

According to Warren Buffett, this is called the cigarette butts policy.

PS. Don’t get me wrong. I actually think Bolton did adopt a good strategy. It fails, not because the strategy is bad, but because it does not stick to one that is already working.

The real issue is, although they look very much similar, the strategies of Bolton and Real Madrid are entirely different. It is most disappointing if you are the owner of Bolton but try to run it as Real Madrid.