Leeds

You may think the information that I outlined yesterday is a waste of time.

Yes and no. If you put yourself into the shoe of the manager of Everton, the problems become obvious: You have less money than your neighbour to recruit top players, and you are not as famous to attract talented youngsters to join your soccer school. In fact, promising students would often left for a better prospect (for example, Wayne Rooney).

You may ask: What is the optimal strategy in this situation?

I must say I have no idea, and am still searching for one. Nonetheless, I know very well what strategies are disastrous.

The notable example is Leeds United.

The story is simple: Between 1997 and 2001, under the leadership of George Graham and David O'Leary, Leeds did well in the Premier League. In fact, it went all the way to the UEFA Cup semi-final in 2001. Seeing its own success, the club became ambitious; revenues were used and loans were made to expand the club.

And the rest is history. Thirdteen years later, Leeds United is now a mediocre in the English Championship League.