Year 1 – Due Diligence
1 November 2026
By M J Kocx
Due diligence.
It can mean a lot of different things.
In a football context, the first year is critical.
Due diligence should involve investigating the football club operations, from top to bottom, and identifying areas for improvement.
In this author’s view, fans, managers, and sponsors should view Year 1 as a write-off season as far as results are concerned.
Of course, the football club should at bare minimum aim to avoid relegation to a lower division.
But, beyond that, everyone needs to be patient and temper expectations.
Year 1 is not the time to be chasing silverware and aiming to consistently compete for trophies.
In Year 1, due diligence can be undertaken by asking the following initial questions.
Due Diligence
Area identified: Football club financials
Initial questions to address...
o Is the football club in the red (losing money) or in the green (profiting)?
o What are the football club’s revenue streams, and how much is it earning year on year?
o What is the current forecasting for the football club’s financials in the next 12, 24, and 36 months?
Area identified: Playing squad
Initial questions to address...
o What is the average age of the squad?
o What is the net value of the squad?
o How many player contracts are due to expire in the next 6, 12, and 18 months?
Area identified: Academy
Initial questions to address...
o How has the Academy performed in recent years?
o How many Academy members have gone onto play for the first team?
o How much value has the Academy delivered in terms of outgoing transfers (total net profit)?
o How much has it cost to maintain the Academy?
o Who are the current Academy coaches, and what is their contractual situation?
Area identified: Training facilities
Initial questions to address...
o Have the facilities been recently updated, or are they ageing?
o What facilities offer a competitive edge compared to rival football clubs?
o How much is spent annually on upkeep?
Area identified: Managerial/Coaching
Initial questions to address...
o What is the contractual situation of the manager?
o Is the manager flexible in terms of new ownership and/or changes to the playing style?
Area identified: Transfer Policy
Initial questions to address...
o What is the current approach taken by the football club in terms of transfer windows and negotiations?
o What is the structure adopted by the football club in terms of negotiating and finalising transfer incomings/outgoings
o Who handles transfer decision-making, and who has input on transfer decisions?
o What is the current transfer budget?
It is critical that existing and/or new ownership and executive teams conduct a thorough due diligence process of the football club.
Due diligence must be ‘Due’.
It should not be rushed, nor condensed.
Simple Framework To Achieve in Year 1
In Year 1, the football club should target the following.
Area: Club financials
Goal(s):
o Either achieve net zero debt, or have a clear path towards being debt free within 2-3 years maximum
o Streamlining of football club television rights revenue, allocation of funds to long-term football club projects
o Streamlining of football club sponsorship, review of existing sponsor deals, and determining if these are aligned with the football club’s vision and values
o Streamlining of football club merchandise, review of net profit/loss from football club merchandise sales, identifying ways to expand and diversity football club merchandise
o Review of football club player contracts and business operations costs (e.g. staff costs, playing contracts, and player performance bonuses), determining areas for renegotiation and/or refinement of contractual arrangements
Area: Playing squad
Goal(s): A full audit of the playing squad, with players categorised as falling into 1) to 4) below
1) Surplus to requirements (can be transferred in the next two transfer windows)
2) Short-term squad member (retain for 1-2 years, before seeking to transfer them to another club)
3) Medium-term squad member (retain for 3-5 years, determine if they are long-term squad member)
4) Long-term squad member (retain for 5-10 years, central to the football club’s vision and values)
Area: Academy
Goal(s):
o Clear discussions with Academy officials on training programs, existing pathways, and football operations
o Development of an Academy framework (providing short, medium, and long-term planning for the Academy)
o Creation of Academy vision and values, to ensure consistency with first team standards
Area: Training facilities
Goal(s):
o Identification of short-term updates to be made to training facilities, within the next 6-12 months
o Identification of medium-term updates/projects for training facilities
o Identification of long-term vision for training facilities, to deliver long-term competitive advantage
Area: Managerial/Coaching
Goal(s):
o Short-term retention of existing manager and staff
o Medium-term vision of managerial candidate(s) to drive vision
o Long-term vision of managerial candidate(s) to drive the football project
o Avoidance of kneejerk reaction(s) to sack/hire certain manager(s)
Area: Transfer Policy
Goal(s):
o Investment in in-house data and analytics team
o Audit of in-house recruitment and transfer policy frameworks
o Creation of short-term transfer policy (6-12 months), for immediate transfer decisions. Identification of 1-2 areas of most concern for the current playing squad.
o Creation of medium-term transfer policy (2-, 3-, 4- and 5-year plans of transfer targets, monitoring of talent, data processes)
o Creation of long-term transfer policy (5+ years, ongoing refinement of recruitment strategies and negotiations)
Next week, Year 2 of The Model.
From
Yours truly,
