SINGAPORE: If football can be an unforgiving sport on the pitch, what happens off it is a whole different ball game.

For many successful businessmen and cash-rich investors, owning a top European club may sound glamorous and lucrative, but can be a quick way to lose money or reputation – and often both.

READ: Commentary: Saudi Arabia wants to muscle in on World Cup 2022. Will Qatar let it?

That hasn’t stopped foreign suitors looking to court western teams.

Asia has had a long love affair with European, especially English, football.

This is reflected in the boardrooms of many famous teams. Out of the 44 clubs in the top two tiers of English football, 16 are under Asian ownership, either in full or part.

PETER LIM AND VALENCIA

Famed Singaporean billionaire Peter Lim has experienced both the highs and the lows in this area. He owns 40 per cent of Salford City, with former Manchester United legends Gary Neville, Paul Scholes, Nicky Butt, Phil Neville, Ryan Giggs and David Beckham sharing the rest.

The new regime took control in 2014, when the club was in the eighth tier of English football. Now it is in the fourth and three promotions away from the English Premier League.  

While successful, Salford is a side project compared to Valencia, six-time Spanish champions. 

In October 2014, the same year Lim bought his stake in Salford City, he was welcomed as a hero when he arrived to take control of 70.4 per cent of the club, clearing €200 million of debt (US$218 million) as part of a €420 million deal.

No wonder then that fans in the Spanish city chanted Lim’s name with great gusto. Yet, five years on, those chants have turned to a less welcoming #LimGoHome. 

Lim, who also tried and failed to buy English football titan Liverpool in 2010, does not need a second invitation as he is probably rarely in Spain these days. 

His roller-coaster relationship with fans is now at rock-bottom. Distrust turned to anger earlier in September when popular coach Marcelino Garcia Toral was fired.

The Brazilian, in charge since 2017, had been credited with bringing some long-awaited success to Valencia. Under his tutelage, Valencia won the Copa del Rey, a first trophy since 2008, and also qualified for the UEFA Champions League. 

Marcelino’s success had been achieved in spite of Lim. Over 50 players have been signed since 2014 and there have been eight coaching changes in a period of instability amid Lim’s micromanagement.

The unpopular Lim could be forgiven for wondering whether it has been worth it, after sinking millions into this latest endeavour.

WHY OWN A FOOTBALL CLUB?

The seductive siren of football club ownership has been incredibly enticing for scores of Asian business leaders.

After a spate of Thai acquisitions of English clubs earlier this decade, the chairman of one Bangkok club told me that the ready-made history of teams in England, the home of the modern game with a professional league, steeped in heritage and going back to 1888 – a full 95 years before South Korea founded the first in Asia – has been tempting for potential investors

READ: Commentary: Premier League wins by creating room at the top for football clubs

The lure of being involved in the English Premier League, the world’s most popular elite club competition that generates massive interest spanning several continents, also lies in its ability to turn their owners into highly recognisable figures.

Owning famous teams can help companies with international exposure but come with substantial risks. Indian poultry company Venky’s bought English Premier League team Blackburn Rovers in 2010. 

Despite the new owners promising stars and success, Blackburn, Premier League champion in 1995, found itself in the third tier in 2017 and struggling to win back disenchanted fans.

KING POWER’S SUCCESS WITH LEICESTER CITY

Rarer is the story of football triumph, when the love of sport marries the acumen of business, though there are laudable examples. 

Few outside Thailand had heard of King Power, the country’s dominant duty-free retail group, until the company bought Leicester City in 2010. The club started the 2015-2016 English Premier League season with odds of 5,000 to 1 to win.

Yet that is exactly what happened in an incredible campaign that captured the imagination of fans and received immense international exposure.

But financial returns can be unpredictable. English Premier League and other leading top tiers in Europe can be broadcasting and commercial money-spinners, but the sky-high salaries and transfer fees involved in keeping clubs competitive can wipe out returns. In the 2017-2018 English season, 13 top tier clubs made a profit while seven were in the red.

Profit may not be the motive for the spate of Chinese activity that started in earnest in 2014 and acquired stakes in 23 European clubs by the end of 2017. 

It has been suggested that these are part of a design to develop the sport in China in a national attempt to help build a sports industry worth US$290 billion by 2025, triple its current value.

READ: Commentary: They are giving up their passports to play football for China but Chinese fans remain sceptical

For Chinese companies, European clubs can act as a bridge between international and domestic markets as well as serve as a place to import football expertise to China and export Chinese players.

THE GULF STATES AND FOOTBALL

Some owners do not seem to care how much it costs. The Abu Dhabi group, headed by Sheikh Mansour bin Zayed Al Nahyan, a member of the United Arab Emirates’ ruling family and deputy prime minister, bought Manchester City in 2008. 

A decade later and the club’s account showed that around US$1.6 billion had been directly invested into the club. 

Whatever success City may have – and the club is arguably the best in England – it will be an uphill climb to recoup the cash. The same can be said for Qatar Sports Investments, a subsidiary of state-owned Qatar Investment Authority, that has taken over Paris St Germain.

The owners of both clubs have been accused of turning them into public relations machines to improve the image of their respective countries.

The Abu Dhabi Group invests, in a much more modest fashion, in Asian teams such as Al Jazira in the UAE and Japan’s Yokohama F Marinos but Asian leagues don’t have the same attraction as their more longstanding and prestigious European counterparts. 

Winning titles in Asia does not command international attention. While it is difficult to make money owning a club in Europe, in Asia, it is almost impossible. Broadcast revenues are, in most countries, negligible as are branding opportunities. 

READ: Commentary: Don’t rule out ASEAN’s bid to host 2034 World Cup

The major European leagues are bigger stages that promise glamour, fame and even sometimes profit. 

Yet it remains an unpredictable venture as the likes of Peter Lim have discovered.

John Duerden has lived in Asia for 20 years and covers the region’s sporting scene. He is the author of 3 books including Lions & Tigers – the History of football in Singapore and Malaysia (2017).

SINGAPORE: Retrenched DFS Group employees were offered better severance packages on Wednesday (Oct 2), but some CNA spoke to remained critical of how the exercise was conducted. 

DFS announced that retrenched workers would receive two weeks’ salary for each year of service, capped at 13 years or the equivalent of 26 weeks’ pay. 

They could either serve out their notice period or be paid in lieu of notice. 

This was more than the original offer of serving notice or payment in lieu of notice period, and a severance package capped at 13 weeks of pay, which the employees received when they were notified of the retrenchment on Thursday. 

The new terms were announced on Wednesday morning in meetings held at the hotel Royal Plaza on Scotts.

The meetings followed comments by Manpower Minister Josephine Teo, who said on Saturday that the DFS Group “could have better handled” the retrenchment exercise, particularly in the way it was communicated to employees and how the severance packages were offered.  

In a statement on Wednesday afternoon, a DFS spokesperson said the company has “made best efforts” to communicate its support in face-to-face meetings with affected staff. 

DFS has increased its “engagement and dialogue with the Ministry of Manpower (MOM), the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) and the Taskforce for Responsible Retrenchment and Employment Facilitation (TASKFORCE)”, said the spokesperson. 

“We remain committed to carrying out this exercise in a fair and sensitive manner,” said DFS, adding that it had in a place a series of measures to assist affected staff. 

These measures were aligned with the Tripartite Advisory from the tripartite partners – MOM, the National Trades Union Congress (NTUC) and the Singapore National Employers Federation (SNEF), it said. 

“We will continue to work closely with TASKFORCE, Workforce Singapore (WSG) and external outplacement agencies to provide support to affected staff in their transition in the next several months.”

In the statement, the LVMH-owned retailer confirmed that employees at its T Galleria in Scottswalk and its shared services centre in Chai Chee were affected by the retrenchment exercise, some with immediate effect, and some over the next few months.

Staff working in the liquor and tobacco concession operations at Changi had also been given formal notice of their termination of employment with DFS, said the spokesperson. 

“This will take effect in June 2020 when DFS will officially exit the concession and a new operator will assume management.” 

READ: TAFEP looking into DFS Group’s retrenchment exercise after dozens laid off

READ: DFS to close its tobacco and liquor stores at Changi Airport

DFS Group announced in August that it would not retain its duty-free liquor and tobacco concession at Changi Airport when its lease expires in June next year.

It had previously said that about 500 people were employed at DFS’s liquor and tobacco duty-free outlets at Changi Airport and that staff members would be offered options regarding their employment, which include deployment to other DFS concessions and working for the new operator.

When CNA visited Royal Plaza on Scotts between 10am and 12pm on Wednesday, there were DFS employees gathered in the hotel lobby. 

Some had just attended their allocated meetings, while others were still waiting their turn.  

Employees CNA spoke to said they were shocked and hurt by the sudden retrenchment, and felt that the updated terms of the severance package were still below expectations. 

Several of them had walked out of the rooms designated for the meetings in tears, while others broke down as they recounted last Thursday’s announcement. 

Ms Celeste (not her real name), told CNA she had worked for the DFS Group for more than 30 years and that she was disappointed with how the retrenchment was handled, especially for long-term employees. 

“It really is so cruel. Most of us have children or parents to take care of, and they didn’t even warn us about the retrenchment,” she said. 

Another employee, who did not want to be identified but said she worked at DFS for 17 years, told CNA she was worried about how the retrenchment would affect her financial commitments. 

She told CNA how her sick husband would unlikely be able to work for a long time and how her two children were still in school. 

“I don’t think this is the right way to treat your employees. They never asked us about family background and whether we can survive if we don’t have a job. I just wish they would be more caring,” she said. 

Employees said they felt the way the exercise was carried out was unprecedented. 

Those whose employment was terminated on Thursday with immediate effect were made to sign and return the retrenchment package agreement by noon the next day. They were also given a bag into which they were to pack their belongings, and asked to leave. 

In previous retrenchment exercises, affected staff were informed in advance so they could make the necessary preparations, according to Ms Celeste. 

“This time, there was no compassion and it was so sudden. Even with the new terms capped at 13 years, that’s less than half of the time some of us have spent at this company.

“Why can’t they have different packages for short-term and long-term employees?” she said. 

Ms Celeste told CNA that several of those who had been asked to leave on Thursday formed a Whatsapp group chat. There were 66 members, many of whom were those who had worked with DFS for more than 15 years. 

One of them, Ms Jessica (not her real name), told CNA: “As a very dedicated employee, I must say that DFS has treated me very well all these years. 

“I love this company, but with this particular incident I feel very sad that we’ve made the news for all the wrong reasons,” said Ms Jessica, who was a DFS employee for 17 years. 

“It is very inconsistent with all the values and teachings they have taught us all these years, to value our people,” she added. “This retrenchment is really like a surprise nuclear bomb.” 

Another employee, who worked for DFS Group for about 40 years, told CNA: “I was very upset over the past few days and I complained to my friends a lot.

“Now I just have no more words to express my disappointment. I never expected this to happen,” she added, tearing up. 

A number of employees said they were aware that the Singapore Manual and Mercantile Workers’ Union (SMMWU), a general union affiliated with NTUC, had reached out to DFS Group.

They told CNA they were hopeful the union could help negotiate for better severance terms. 

“We look forward to further dialogues with SMMWU and NTUC to promote good industrial relations for our mutual benefit and that of our staff,” said the DFS spokesperson. 

Secretary-general of SMMWU David Yeo told CNA that in a unionised situation, the norm for severance packages is one month for each year of service, subject to a cap of 25 years of service. 

Any deviation from the norm would be based on the company’s financial position and viability, he added. 

“If recognition is obtained by the Union to represent the workers, we will revisit the package,” said Mr Yeo. 

“What the outcome of the revisit will be is another thing altogether.”

SINGAPORE: In a country focused on academic achievement, Singaporean Galvin Kang Jian Wen did something almost unthinkable – he stopped studying as a teenager to spend more time playing computer games.

After completing his secondary school education, he defied parental disapproval to pursue his dream of becoming an e-sports champion, but believes the sacrifice has paid off as he heads with his National Team to the Southeast Asian (SEA) Games.

Teenage gamers worldwide are shunning mainstream education in favour of spending hours tapping away on computers and phones, attracted by a booming e-sports scene where prizes at major tournaments reach millions of dollars.

But perhaps nowhere is the prospect of swapping textbooks for joysticks more daunting than in Singapore, which tops global education rankings and where striving for academic excellence is deeply ingrained in the national psyche.

READ: Razer’s Tan Min-Liang pledges S$10m to grow Singapore’s e-sports, support SEA Games team

Kang – who is his national side’s coach and competes in multiplayer battle game Dota 2 under the moniker Meracle – said his belief in his own playing skills was so great he had the courage to what most would not dare.

“I stopped studying and went to pursue this passion of mine,” the 23-year-old told AFP at a SEA Games boot camp in Singapore, which was organised by the tournament’s e-sports partner, gaming hardware company Razer.

“Obviously (my parents) were not very happy about my decision because nobody wants their kids to stop studying.”

EDUCATION PRESSURE

The focus on education in Singapore means few are willing to pursue a career in the fledgeling e-sports scene – Singapore has only around 15 professional gamers.

“Singapore is very focused on study,” said the country’s e-sports association president Ng Chong Geng, recalling how when he gave a talk at a university, not a single student expressed an interest in becoming a professional player.

“Now more or less everyone graduates with some sort of degree … If you try to be an e-sports athlete you have to give up on a lot of other opportunities.”

READ: Several measures in place to support local video gaming, e-sports industries: Chan Chun Sing

WHAT HAPPENS AFTER RETIREMENT?

Kang is not alone among players heading to the SEA Games, taking place in the Philippines in November and December, in having chosen to focus on gaming rather than study.

“The thing that most changed me was quitting school so I can play for the whole day, play full time,” said 17-year-old Thai Dota 2 gamer Nuengnara Teeramahanon, who quit school aged 16.

“I just did not want to study anymore, I just feel like it’s so boring.”

However, the lack of qualifications could be a disadvantage for players when they retire, which can come at a young age in e-sports. In some games, players can be finished by 23 as their reactions slow.

Players from nine countries will compete in six titles at the SEA Games – Mobile Legends, Arena of Valor, Dota 2, Starcraft II, Tekken 7 and Hearthstone.

Supporters hope the tournament could be a step towards a spot at the Olympics although that seems unlikely any time soon, with the venerable institution so far unenthusiastic about the discipline.

READ: Singapore companies looking to capitalise on region’s fast-growing gaming culture and interest in e-sports

Players who cut short their education and made a success of e-sports say their families have, for the most part, accepted their choice – although they stress they are not encouraging other gamers to follow their lead.

Kang used to be part of a team in the United States, where his accommodation was paid for and he received a salary and prize money. He currently plays for a Thailand-based team.

“Eventually they (my parents) were convinced,” he said. “I could pay for my own food, live on my own.”