When Leadership Fails, Fans & Wallets Suffer

In sport and private equity, leadership isn’t simply about strategy. It can determine the success, value and long-term future of an organisation.

The wrong appointment can create instability, damage a brand and cost millions.

The Cost of Leadership Missteps

Manchester United

Following the Glazer takeover in 2005, Manchester United faced years of financial pressure, managerial instability and fan unrest.

• £500M+ in debt accumulated between 2010–2020

• Three managers appointed within five years

• £169M spent on underperforming signings including Harry Maguire and Paul Pogba

• Club valuation fell from $4.6B in 2012 to $3.2B in 2024

  
  

The lesson: Leadership instability doesn't stay in the boardroom. It affects performance, reputation, revenue and stakeholder confidence.

FC Barcelona

Barcelona's financial and sporting struggles demonstrate what can happen when long-term sustainability is compromised.

• €1.35B in debt reported in 2023

• Player salaries cut by 50%

• Brand value fell from #1 to #5 globally between 2020–2023

• More than €500M in commercial revenue reportedly lost

  
  

The lesson: Growth without sustainable leadership and financial discipline can quickly become a liability.

Private Equity: Leadership Can Make or Break an Investment

The same principle applies beyond sport.

WeWork × SoftBank

SoftBank's investment in WeWork became a $10B+ disaster, with governance concerns, aggressive expansion and a lack of effective oversight contributing to the collapse.

KKR × Envision Healthcare

KKR's $4.5B acquisition ultimately resulted in Envision entering bankruptcy, with more than $1.5B of KKR's equity written off.

Apollo × Claire's

Apollo's $3.1B acquisition of Claire's ended in bankruptcy after the business struggled to adapt to the shift towards e-commerce, with $1B+ reportedly written off.

What These Cases Have in Common

Across sport and private equity, the pattern is remarkably similar:

Poor leadership → poor decisions → financial consequences.

Whether it is a CEO, Sporting Director, COO or Board member, the people leading an organisation have a direct impact on its ability to navigate change, manage risk and create sustainable growth.

What This Means for Investors

For investors, leadership should be assessed as part of the investment thesis — not after the deal is done.

The right executive team can:

• Protect and grow enterprise value

• Navigate periods of transformation

• Strengthen operational performance

• Manage risk and stakeholder expectations

• Build a leadership structure capable of delivering the investment strategy

The right leadership team isn't a cost. It's an investment.

The Redbox Perspective

At Redbox Talent Partners, we help organisations across sport, private equity and business identify and secure the senior executives capable of delivering their ambitions.

Because when the stakes are high, the right people can be the difference between protecting value and creating it.

References

Sources: BBC Sport, Reuters, U.S. Securities and Exchange Commission, U.S. Senate.