What Startups can learn from this Football Club's (Financial) Revival

I'm a huge football fan and a fiend for any documentary covering professional teams. I recently discovered a docu-series covering the recent rise of Newcastle F.C. after the Saudi takeover a few years ago. The club, previously struggling in the relegation zone, was essentially saved the Saudi-backed PIF Fund, becoming what is now a Premier League powerhouse.

There's a scene in episode one where the football club's CEO is pitching the club's vision to its newly appointed board members, explaining that there is a clear positive correlation between investment made in players' wages and points earned in the table. The more money spent on paying the best professionals on the market, the higher the chances of winning—this makes intuitive sense. What struck me were the parallels between the football business and the tech-startup world.

Similar to top-flight teams, well-funded tech startups compete for the best talent in the market, trying to sway them with high salaries and cushy benefits. Just as football teams compete for points, startups compete for market share and funding. Newcastle FC is essentially a distressed company that received generous financial backing at a time when there was no hope for a brighter future.

Here’s what the football club did well to see an almost instant return on their investment:

Hire Top-Tier Talent and Build an A-Team:

The club identified weak spots in their squad and gaps to fill with new talent. They invested in personnel like Kieran Trippier, Miguel Almirón, and Alexander Isak. All were committed to the vision of bringing Newcastle back to form and made an instant impact on the team's performance.

Create a Winning Culture / Get Rid of a Toxic One:

New investors brought a revived sense of hope and optimism, something the old owners failed to provide. Years of chaos and disorder had trickled down to the players and infiltrated the culture of the club. Replacing the board allowed for a fresh start and room for new ideas. While money from a Saudi investor would have been frowned upon in Germany, the fans were supportive of the decision, knowing what the investors would mean for the club's future. The board, players, and fans were all aligned, creating a positive atmosphere around the club.

Set SMART Goals:

After the takeover, the club returned to winning ways, making it to a Carabao Cup final and consistently occupying 3rd and 4th place in the league table. It became clear that the priority would be qualifying for the Champions League, above all else. Sports and businesses are performance-driven, so setting quantifiable and achievable goals can be a powerful motivator. The team was clear on the steps to take to reach that kind of consistency in the league and who was needed to bring the necessary quality to the pitch. In business, it's not always as straightforward as points on a league table. The challenge becomes what to aim for and why. Startups that aim for the wrong goals can shoot themselves in the foot—focusing on actionable metrics (ARR, churn %, cash burn) vs. vanity metrics (hires, funding, page views) helps companies gauge where they truly are in the competitive landscape.

The journey of Newcastle F.C. is a testament to the power of strategic investment, top-tier talent acquisition, and a vibrant culture shift. It mirrors many aspects of the dynamic world of tech startups, where the right combination of funding, talent, and goal-setting can lead to astounding success.

If you enjoyed this article, make sure to subscribe!