In the second of our ‘matched pair’ of interviews with key figures in City’s new set-up, Managing Director Steve Stone talks to Stewart Lewis about the importance of planning to the club’s short-term and long-term success, managing finances – and his straight-talking relationship with Stuart Webber.
Steve, the new structure is a big change. What brought you to the decision, and what do you see as the benefits of the new structure?
Looking at what happened to our Chief Execs – losing two in nine months – makes you think about the way the club is run.
Being in different divisions made us focus on the short term: we worked from transfer window to transfer window. It caused us to spend on transfers for the short term; we locked into long-term contracts, but with players for short term aims.
What this structure enables the club to do is two things. It enables someone to run the business side of the club (i.e. me). And it enables someone to run the football side who’s got the experience and expertise in football. We’ve probably been guilty in the past of having Chief Execs who have spent too much time on the football side.
The advantage of a Sporting Director is they’re looking at the club in the long term. A Head Coach will look at the short term. If you’re talking about a player in the Academy who’ll come through in 2 or 3 years’ time, it’s not top of his agenda.
This is about having the long-term interests of the club at heart. I’ve come from the business world where we had long-term plans and strategies – I think it’s fair to say the club hasn’t really had one of those up until now.
The new structure will only work if the chemistry between people is special, won’t it?
It’s absolutely critical – the chemistry between the Sporting Director and the Head Coach, and between the Sporting Director and the Managing Director.
I helped to recruit Stuart; when we did the interviews, that was one of the big things. From speaking to Stuart the first time we met – it was four or five hours – it was clear that we would get on. We sit and have sensible conversations; there’s no messing about. The club hasn’t been open in that way previously; it was run by the First Team Manager at Colney and it was a bit of a closed shop.
Is Stuart clear about what he’s taking on here?
Stuart’s got his eyes wide open in terms of what the financial constraints are, the fact that we’re a self-financing club. We had a very honest conversation about that before he committed himself to the club. Stuart’s also very comfortable with the principles of what he has to do from a player trading point of view.
What gives me heart is that Stuart comes from a club that had a wage bill far more similar to what we’d have without parachute payments.
Some will say that however good the structure, Norwich’s ownership is a barrier to fulfilling our ambitions – you simply need deeper pockets than we have. What would you say?
It’s obviously easier if someone’s dumping a lot of cash in, as long as you’ve got the right structure. But I absolutely think it’s sustainable to be in the Premier League with the funding structure we have, if we’ve got the right set-up to spend the money properly.
Looking back a year, if we’d made slightly different decisions with our transfers we might well have stayed up, earning another £100million. If we’d managed that successfully, things would be very different now.
We have to be at the top of our game. But I believe it can be done, or I wouldn’t be here.
So you’re genuinely looking to reach the Premier League and stay there?
If you get to the Premier League, it’s a bit like someone donating the money to you. As long as you spend that money properly – not just on players, but on developing Colney and the Academy.
I don’t think, with the amount of money now in the Premier League, that outside funding is as critical as it was. It’s more important that you manage the money better than we have in the past.’
How will you be approaching transfer windows in future?
You’ve got to have a better plan than we’ve had before, when we’ve sometimes spent money on over-age players who aren’t motivated to deliver.
I’ll be very surprised if we’re scratching around for players on the 31st of August or the 31st of January, as we’ve done in the past. Stuart is a planner who’ll do things in advance.
I’m looking forward at least two years with a number of scenarios, depending which league we’re in. We’re planning into the future, not just the next transfer window.
Long-term planning is fine, but surely you have to balance it with getting to the Premier League as quickly as possible?
We know our best chance is next season; we’ll be focused on it. That said, we haven’t always been our most successful with transfers when we’ve had the most money.
Clearly, there’ll be important changes this summer.
You’ve been here two years now. What do you make of the club and the Board?
What I see when I sit in Board meetings is a group of people who are passionate fans of the club and want to do the right thing. Have they always done the right thing? No. Is that because of a hidden agenda? No. Do they take money out of the club? No – they’re all unpaid.
We go to away games and pretty much the whole Board goes, because they’re fans and want to see the game. I’m thinking to myself it’s a pretty good thing.
This club’s a bit different. I moved to Norfolk two years ago, and you become aware of how important the club is to the community.
I’ve seen Tom Smith’s influence increase significantly – he challenges and brings new ideas, and is very focused on ‘what does Norwich City mean?’. Ed (Balls) is very good in terms of chairing Board meetings and making sure that actions are followed up – that the Board is doing what it needs to be doing.
It’s now similar to the professional boards I was used to in the corporate world.
Without changes, I suspect the atmosphere at Carrow Road would now be pretty sour. The changes seem to have at least given the fans some optimism?
I personally feel optimistic, because it’s now a structure I believe in. It feels like there’s expertise in the right places.
Of course it’s easy to talk optimistically – and I will because I feel optimistic. The proof will be in whether we deliver it or not. I’m acutely aware of that, as is Stuart.
Like Stuart, you put a lot of emphasis on communication. Not perhaps what we’d expect from the finance guy?
I like to communicate. In the last nine months we’ve been particularly poor at it. I want to be open – people might not always agree with what I’m saying, but I’ll try to put a rational argument and I’ll front up to things.
We’ve got to tell our stakeholders – primarily our fans – what we’re doing. If not, suspicions grow. I don’t blame the fans for being frustrated. If we can’t come out as a club and say what we’re doing, it’s a pretty poor show.
It’s complicated to get it right, but it’s not complicated to communicate what you’re trying to do.
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On behalf of our readers, MFW would like to thank Steve Stone and Stuart Webber for the time and openness they’ve given us. Special thanks also to Norwich City’s Head of Communications Joe Ferrari for facilitating the interviews.
The more I hear from this guy the more optimism I feel that we, the club, are moving in the right direction.
I hope all the fans that attend matches will encourage the team a little more patientlt than they have of late, let’s be that 12th man Delia is so famous for!
OTBC
Good stuff from Steve.We have heard from him and Stuart and know where they are coming from.
Do people agree with me that, in view of his important role in NCFC’s future,its time the fans had some video of Tom Smith explaining his aims and philosophies for the Club (or have I missed it!).
Jarrolder #2: Good points.
With the change of structure, it’s timely that Stuart and Steve are so prepared to come out and talk openly about their roles and plans. Tom Smith also buys into the idea of greater openness – in principle, we have agreement for him to do an MFW interview in the not-too-distant future.
Both the Webber and Stone interviews show they’re clearly intelligent guys. What I’ve still not heard is the answer to “what happens / what does the club look like during an extended period in the the Championship. The answer is always “we want to be the PL. that’s not really an answer. I’ve heard nothing articulated and that’s rather scary, since the last time it didn’t end well.
Very good read. Feel our club is in good hands, and am optimistic for next season if we can get the transfers in and out right.
Steve Stone says it’s sustainable to stay up in the Premier League with our funding structure. I would agree that the £100M TV cheque does help level out the chances of staying up.
But our funding structure does limit our chances of actually getting promoted in the first place. Promotion any time after next season – our last with parachute payments – will clearly be very difficult to achieve based upon an income of gate receipts and player sales alone.
Liked the interview my one criticism in reading this is that the only goal is to get investment into the club is via promotion to the prem league asap.
There is no back up plan it seems to entice possible investment from an outside source.
As I mentioned in a previously Crystal Palace, Swansea, Bournemouth, Brighton have all sold off shares into the clubs to wealthy investers without losing control, surely a so called dept free club looking for a major invester from either the USA,China or the Middle East should be tempting.
I just wonder if the board are happy just to plough the same trough hoping that promotional comes and they can say aren’t we good another successfully season when really we are only a yo yo club not really achieving its fully potential.
Alex (7) – Share your concern tbh, but in the circumstances I guess Steve Stone would be highly unlikely to reveal the prospect even it it were on the table – Delia & Michael being his paymasters et al.
#5 Bracken Yes, I too feel that the club has learnt from the lessons of last season when there was a MASSIVE disconnect with the fans and THAT Moxey ‘statement’!! SO much is going to depend on who SW succeeds in recruiting as our HC and then it is down to keeping the players who we need to take us forward and hopefully moving on those who’s contract has expired, or who are deemed ‘surplus to requirement’ and then bringing in players who are an improvement on what we’ve already got/promoting youth players.
#6 Interesting that Steve says something about not spending wisely in some of our previous transfer dealings and IMO, it would surely have been worth taking a bit of a gamble when we got promoted and spent a bit of cash to buy a striker and so reap the rewards for staying in the PL. You’re quite right when you say that staying in the PL is going to be very difficult without an injection of cash, but who knows ……..
Dave B #4: In fairness, neither Stuart nor Steve ducked the issue of what happens if we fail to get promoted next season.
Part of the answer is more emphasis on developing the young players we have. A manager in the traditional structure will always be under pressure to go for the quick fix – ie buy an established player. Both Stuart and Steve stressed the role of the Sporting Director as a counterbalance to that, someone who’ll have proper plans for the development of our own resources.
In financial terms, I’d refer you to Steve’s comments about timescales. He’s planning years ahead for different possible scenarios – something the club hasn’t done for some time, by the sound of it.
Stewart. I purposefully didn’t comment on the Webber interview because I didn’t hear an answer and wanted to hear Stone’s.
“We have a plan” is no more communicating a plan than “promotion, promotion, promotion”. It’s very easy to say “we’ll develop youngsters”. The reality is you’re not doing that and going up because be you’re in a league with massive spenders coming down, or with investment.
It sounds great, but I’d ask, how many teams have gone up with laregely home grown talent? To be clear, I’m not against developing talent. But it’ll be a long shot for promotion.
Hi Gary
I would agree that Messrs Stone and Webber have to be cautious in their comments.
If my memory serves me didn’t a previous board member actual state (Moxey) that the club wasn’t for sale or looking for investment if this is the case it will hinder forward planning.
If we are going to rely on promotion even with the increase in money (100m) which is a lot of readies to a small club like City it will not go far.
Increase in transfer fees,salaries, bonuses, policing and other outlays will soon eat away at it, so outside investment must be something the club needs.
Alex (12) – Agree – it *must* be considered.
I’m really optimistic too i think mr webber is just the tonic for us and hopefully awaken delia and co. as to how to run a club properly ….and it does sound if stuart knows the constraints he has to work with and he’s obviously not got a problem with that which is reassuring in a way .
Hi Gary
Whats your take on all the HC rumours I see this a a possible great outlay.
1) O’Neill never managed a top club, wasn’t doing very well as an international manager till the last tournament now seems to be improving could cost city a lot in compensation.
2) Rosler hit and miss had a good reputation in Norway and did well at Brentford, failed at both Wigan and Leeds possibly due to the amount of time given at both clubs,but now doing very well at a smaller club in Fleetwood again would cost city a lot in compensation.
3) Gary Monk probably the best out those being mentioned, sacked by Swansea and they haven’t been the same since, At Leeds has had agreat season but this could be tricky in as much as he hasn’t been offered a new contract but says talks to start in June?, Docitymake contact/offer of compensation or wait to see if Leeds sack him.
4)Is there someone overseas like in Germany that will come out of the blue.
Lets just hope all is sorted soon so that the club,supporters, media can get behind the new HC.
#12 Alex: I seem to recall that our very own Gary Field has recently suggested he will be addressing this subject in the not-too-distant future.
To me the issue is a minefield, so I’m happy to leave its consideration to Gary – or anybody else but me, come to that:-)
Alex #12: I’m pretty sure external investment hasn’t been ruled out, but for now they’re planning on the basis of the current structure. If an attractive investor appeared, that would be a bonus.
Dave B #11: I do think there’s a little more to their thoughts than “we have a plan”.
They’re both acutely conscious of our financial advantage diminishing each year, but aren’t just putting all their eggs in the basket of next year. Both emphasised the critical importance of balancing short- and medium-term.
Steve talked a lot about making effective use of our money, whether now or in future. Money helps, of course – but of course the biggest net spenders this year were Villa, while most of the playoff teams had much limited budgets.
#12 Alex B & #16 Martin – about 600 words in, but still needs work, as I’m not altogether happy with parts of it. Should be this week – work permitting.
Hi Gary
Thats for the info looking forward to your read as and when ready.
Will it have any insight into as in my previous comments on possible updates on an incoming HC and other coaching staff.
Have a nice bank holiday
Re: Alex B #15. I agree with the lukewarm response to Michael O’Neil….club football is so different to internationals – though I suppose HC in a club is a bit more like the role an international manager fulfils. But still: meh?
Rosler and Monk have attracted a lot of press reports suggesting they can leave at the end of their respective seasons. Suspect at worst (from our point of view) a one year rolling contract is what they are on. Compo around £1m for Monk and half that for Rosler??
Neither are going to break our bank….
Congratulations! Your article is precised on the Pink Un site main page!!
Note also Nick Mashiter (not me) stating that City are to trigger the option for another year they hold on Toffolo.
Just confirmed what most of us have known. Transfers last minute deals lead to panic buys. Whincut or whatever his name is, is the latest waste of £7m
Fascinating that AN was allowed so much control with so little experience. I wonder what he’d have been like under SW. Can’t help feeling he was left to get on with things while the CEO thing crumbled and instead of getting the support he needed, reverted to ‘flight or fight’ mode which ended up alienating many. Shame.