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Corporate Culture of Liverpool Football Club

Founded in 1892 in the Merseyside city of Liverpool, United Kingdom, Liverpool football club is still one of the most valuable clubs in modern football  despite the club’s absence in the UEFA Champions League (“UCL”), football’s Holy Grail, for three consecutive years. The club has recently been through financial turmoil and almost risked being bankrupted and relegated in 2011. Upheaval continues with court orders allowing Fenway Sports Group (“FSG”), an American sports investment company, to take over and introduce modern sports management philosophies that seem to be questioned by Liverpool fans whether or not it complies with ‘the Liverpool Way’.

The Liverpool Way is a subjective phrase referring to the club’s culture. It is believed to be based on Bill Shankly, the club’s most successful manager who transformed Liverpool F.C. into the top clubs of Europe during 1959 to 1974. Shankly had a serious belief in football and he also believed in working hard aiming for nothing less than success. He once said “If you are first you are first. If you are second you are nothing ”. It was his philosophy to make Liverpool unbeatable and the club’s home ground, i.e. Anfield, a fortress. He was also famous with a management style focused solely on football according to his statement “At a football club, there's a holy trinity - the players, the manager and the supporters. Directors don't come into it. They are only there to sign the cheques2”. Another value contributing to the Liverpool Way is portrayed through the club’s anthem, You’ll Never Walk Alone (“Y.N.W.A.”), which reflects Shankly’s other legendary quote; “If you can't support us when we draw or lose, don't support us when we win2”. Therefore the Liverpool Way can be understood as working hard, being successful, focusing only on football and being loyal. Most of the club’s core values have been proven on the pitch with the team’s performance nicknamed “The Red Machine”, a ferocious scoring squad never stopping until the final whistle.

However, like every other successful organization, Liverpool F.C. has been challenged with external environmental changes. In this case, the club has yet effectively adapted to modern football where clubs are becoming corporations e.g., inflated spending and heavy merchandizing. The club may be viewed as conservative and, lately, lack of ambition.

The all-time heroes of Liverpool F.C. are represented in the managers flag at Anfield. Historic figures include Bill Shankly, who introduced the club to league titles and laid foundations for future success, and Bob Paisley, the club’s most successful manager with three European Cups. Modern day fans praise Kenneth ‘King Kenny’ Dalglish and Rafael ‘Rafa’ Benitez, the former being the club’s player/manager scoring 118 goals and bringing double champion titles whereas the latter was well-regarded as a master tactician who created a miraculous comeback in UCL finals. The latest hero worshipped by the fans and respected by the club is Daniel Agger, captain of the Denmark national team, who had his knuckles tattooed with the club’s anthem Y.N.W.A. in response to a bid from Premiere League champions Manchester City who offered title potentials and double pay. The Dane has constantly given statements reflecting his owns values of loyalty, a rare character in today’s modern football industry. The first statement was during the end of Rafa’s reign where several players have doubted the club’s future. Agger, however, did not hesitate to tell the press “…his (Rafa) exit has no bearing on my future. I'm committed to Liverpool .” and later on commented on his fellow teammate’s abandoning the team as “I think it's unacceptable to play for one of Liverpool's rivals. I am proud to pull on my Liverpool jersey and will never go to another club in England. It’s about a form of respect for the club. ”

One of the traditions visualizing the Liverpool Way is the iconic sign of ‘This is Anfield’ hanging over the players tunnel to "… remind our lads who they're playing for, and to remind the opposition who they're playing against. " according to Bill Shankly. The sign is the symbol of Anfield being a fortress no team can take down, a fortress Liverpool players must fight for with their lives to deliver success.

A notable rite of passage, which has lately been overlooked, is the boot room staffs. Under Shankly’s spell, the manager and promising players would often sit in the boot room after practice to go over tactics together. It was Shankly’s approach to pass on the way Liverpool should be playing to the next successor. Bob Paisley was Shankly’s boot room staff before he became manager. Joe Fagan was also Paisley’s boot room staff before being manager. Fagan’s boot room staff successor is Dalglish or known by Liverpool fans as King Kenny. The boot room staff allows the successor to have a short internship period with the manager and the manager can assess and develop the club’s future manager to share the same values. Liverpool’s success in the 1980s was believed to be from this rite of passage.

To show the club’s loyalty to the fans and its own history, Liverpool arranges a memorial service for the 96 victims in the Hillsborough incident every year since 1989. Players, managers, staffs and management will come to remember the fans whom have died in the tragedy. The memorial service is a ceremony which unites the club, the players and the fans. It is also a further emphasis of the club’s anthem, You’ll Never Walk Alone.

Modern Liverpool F.C. is well known for the UCL finals in 2005, the club’s latest European cup, where the team went down 3-0 in Istanbul to a much stronger side AC Milan in the first half. Most people would expect AC Milan to score more as they were clearly the better side. Despite how depressing that moment was, Liverpool fans continued singing You’ll Never Walk Alone and the team came back with 3 goals in a miracle of 6 minutes. This story is what most fans and the current captain, Steven Gerrard, desire again. This is a special story because a 3-0 lead in the first half has very little possibilities of being equalized. This event did not bring Liverpool just the title but also brought the cup back to Anfield permanently as UEFA would give the trophy to the club that won the UCL 5 times. Until now, Liverpool is the only club in England to have won 5 European cups.

The Liverpool Way can be viewed as conservative values and the current owners have started to change the culture to become more modernized and tactical for today’s football industry. To comply with UEFA’s financial fair play (“FFP”) which allows the club to spend no more than received income, Liverpool’s new owner have implemented a lean wage structure by selling non performing players with high pays and started to use a statistical approach in pricing players during the 2011 transfer window. Although the intuition failed to produce profitable outcomes but it sent a message that Liverpool F.C. will be going through massive culture change. The newly added value is sustainability, where management wants a young squad that will grow with the team instead of buying expensive players with a few years left of their prime. Management has changed the club business aspect by creating several business partnerships to strengthen the brand and secure revenue streams. Liverpool has signed a kit deal with Warrior for a record of £150 million and extended the club’s merchandize and service offerings to the fan. Although the club is not healthy in terms of football performance but the change in culture has given the club a relevantly healthy financial position compared to its rivals.

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