scholarly journals Potential investment to professional sport subjects

2019 ◽  
Vol 16 (1) ◽  
pp. 57-66 ◽  
Author(s):  
Oleg V. Litvishko ◽  
Roman R. Veynberg
Keyword(s):  
Public Relations ◽  
Capital Investment ◽  
Professional Sports ◽  
Growth Potential ◽  
Stock Index ◽  
Sports Clubs ◽  
Football Clubs ◽  
Physical Form ◽  
European Football ◽  
Football Industry

Purpose of the study.The introduction of financial discipline rules by the Union of European Football Associations started a new stage in the development of the football industry. According to the UEFA statistical report in 2017, football clubs for the first time reported a total profit of more than 600 million Euros, while a few years earlier the total losses of clubs representing the highest European football divisions were 1.7 billion Euros. This fact indicates a possible change in the investment attractiveness of sports clubs. The purpose of this study is to assess the presence of the investment potential of the football industry as a possible object of capital investment.Materials and methods.The study analyzed the data obtained from the official statistical sources, including a comparative UEFA report for 2017 on the licensing of clubs “Landscape of European Club Football”, normative legal acts regulating public relations in the field of professional sports, publishing in periodicals and the Internet, illustrating the practice and problems of professional sports development, as well as statistical data from the portals www.stoxx. com and www.investing.com. The study applies such methods of scientific cognition as a method of statistical and economic analysis, comparison, analogies, synthesis, as well as the method of measuring and aggregating data, the graphical and tabular method.Results of the research.When considering the shares of professional sports clubs as objects of capital investment, it is advisable for investors to pay attention to the functional type of assets that such organizations possess and the degree of diversification of their activities. The structure of non-current assets and the share attributable to tangible assets - sports infrastructure and other objects, is an important factor affecting the specific risks inherent in the activities of sports subjects, which allows to compensate losses incurred as a result of not achieving the goal set for the team for the season due to revenues from other activities that affect the investment attractiveness of the club.Conclusion. Based on the results, we can draw the following conclusions. The football industry has significant revenue growth potential. The increase in the financial profitability of professional sports subjects is accompanied by a rise in the stock index quotes, which accumulates the shares of European public football clubs. The comparative analysis carried out in the research indicates the attractiveness of these financial instruments as an investment object. However, such investments are characterized by a high degree of risk due to the specificity inherent in the professional sports industry. From the total number of factors affecting the exchange rate fluctuations of football clubs' shares, one can single out the most significant indicators such as the outcome and significance of the match, the nature of the tournament, and the sports (physical) form of the team.

scholarly journals EFFICIENT BUSINESS MODEL AS A BASIS FOR THE GROWTH OF THE INVESTMENT COST OF A PROFESSIONAL SPORTS CLUB

2019 ◽  
pp. 159-166 ◽  
Author(s):  
O. V. Litvishko ◽  
O. M. Golikova
Keyword(s):  
Business Model ◽  
Professional Sports ◽  
Cash Flows ◽  
Sports Clubs ◽  
Sports Industry ◽  
Financial Condition ◽  
Sports Club ◽  
Football Clubs ◽  
European Football ◽  
Football Industry

The precarious financial condition of sports clubs, combined with negative cash flows and permanent losses, can be the cause of the further collapse of the entire football industry. This is largely due to the European model of the implementation of sports activities, when in the pursuit of a sports result, the basic principles of building a business and financial efficiency go to the background. The article has been devoted to the search questions of an effective business model for the further development of the professional sports industry, taking into account the modern requirements of a market economy. The arguments, that the financial rules, introduced by Union of European Football Associations, will make football clubs profitable projects attractive to investors, are given in the article.

From Homophonic to Polyphonic Organization: European Team Sports Clubs in Transformation

2010 ◽  
Vol 19 (5-6) ◽  
pp. 93-120 ◽  
Author(s):  
Rasmus Storm
Keyword(s):  
Profit Maximization ◽  
Team Sports ◽  
Professional Sports ◽  
Complex Situation ◽  
Sports Clubs ◽  
For Profit ◽  
Cultural Aspects ◽  
Football Clubs ◽  
European Football ◽  
Spectator Attendance

From Homophonic to Polyphonic Organization: European Team Sports Clubs in Transformation Several European sports - especially association football - have rapidly evolved from amateur status into high-income professional sports in the last two decades or so. During this development the scope and objectives of the clubs have been broadened as the clubs to a growing degree serve several concurrent goals such as striving for profit maximization, a high winning percent, fan loyalty, spectator attendance and TV viewers, coupled with satisfying demands from the environment for various kinds of community engagement and sometimes even social or cultural aspects. Taking this development as its point of departure, this paper aims at deploying a theoretical framework capable of better understanding the objectives of European football clubs as they have developed into a complex situation of professionalism. This is done by deploying a systems theoretical approach, thus regarding the clubs as evolving from homophonic towards polyphonic organization.

Career patterns of marketing managers in top European football clubs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Karolina Nessel
Keyword(s):  
Sports Management ◽  
Career Patterns ◽  
Content Type ◽  
Marketing Managers ◽  
Football Clubs ◽  
European Football ◽  
Main Activity ◽  
The Individual ◽  
Functional Experience ◽  
Football Industry

PurposeThe goal of this research was to explore career patterns of senior marketing managers in the best European football clubs (SMMEFCs).Design/methodology/approachThe data came from the LinkedIn profiles of current and past SMMEFCs. Firstly, the optimal matching algorithm was used to determine clusters of pathways leading to a first SMMEFC position based on the main activity of the employing organisation. Secondly, these patterns were compared in terms of variables depicting the career paths, clubs and managers. Finally, the evolution of the post-SMMEFC careers was analysed.FindingsPeople in their first SMMEFC positions are mainly male with a university degree in business and marketing, and with a predominantly functional experience in marketing. There are five ways to become an SMMEFC: through business (40% of the sample), football (32%), other sports (11%), marketing and communication (11%), and media (6%). As the majority of SMMEFCs come to their positions from outside the sporting world, the specificity of the football industry is not a serious obstacle. Instead, the careers are bounded by functional marketing experience. Among the individual sequences leading to a first SMMEFC position, only around half of the football cluster may be considered traditional careers. Football, and sports in general, seem attractive for post-SMMEFC career development for the majority of managers coming from all pathways.Originality/valueThe study is the first one to quantify career patterns in professional sports management. It provides new insights about marketing careers and practice in European club football.

scholarly journals FINANCIAL AND ECONOMIC ASPECTS OF PROFESSIONAL FOOTBALL INDUSTRY: TRENDS ANALYSIS AND DEVELOPMENT PROSPECTS

2021 ◽  
Vol 1 (36) ◽  
pp. 471-480
Author(s):  
V. Reikin
Keyword(s):  
Annual Reports ◽  
Professional Football ◽  
Economic Aspects ◽  
Academic Field ◽  
Current Trends ◽  
Football Clubs ◽  
Theoretical Generalization ◽  
European Football ◽  
Football Industry ◽  
The Impact

The purpose of the study is the analysis of financial and economic aspects and assessment of current trends and prospects for the development of professional football industry as an independent academic field. In this article the following general scientific and applied methods were used: analysis and comparison — to determine the main trends in the development of top professional football clubs in the context of globalization; generalization — to establish the influence of institutional factors on the economic results of football clubs activity; expert assessments — to determine the market value of players in the global transfer market; abstract and logical methods — for theoretical generalization of the obtained results, forecasting the prospects for the development of European professional football and formulating conclusions of the study.  The article deals with the analysis of financial and economic results of  European football top clubs functioning in the pre-crisis period (before COVID-19). The author emphasizes the dualistic origins of modern professional football, which combines sports and commercial components. It is analyzed the impact of «Bosman case» and the rules of «financial fair play» on the professional football industry development in the context of globalization. The sources and structure of football top clubs income are also analyzed. The main focus is on European football, where current trends are most clearly manifested. The source of information was the annual reports of audit firms, specialized analytical laboratories and FIFA data. As a result of globalization processes, the author predicts the creation of full-fledged «SuperLeague» championship of top clubs with the greatest financial opportunities, as well as the appearence of polycentrism phenomenon in the world football industry. The forecast scenarios of  football industry perspectives, formulated by the author, to substantiate the financial and economic aspects of clubs and players transfer market functioning, can be used in practice to assess the potential and formulate strategies for professional football leagues and clubs.

Chinese Investment in the European Football Industry

2020 ◽  
pp. 1392-1413
Author(s):  
Sue Claire Berning ◽  
Daniel Maderer
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Foreign Direct Investments ◽  
Outward Foreign Direct Investment ◽  
Chinese Firms ◽  
Chinese Investment ◽  
Football Clubs ◽  
European Football ◽  
Cross Case Analysis ◽  
Football Industry

Outward foreign direct investment of Chinese firms in developed markets is a relatively new phenomenon. Since December, 2014 when the Chinese government announced a major investment program in sports, Chinese firms have particularly focused on foreign direct investments in the European football industry. We analyze the investment patterns, the determinants, and the motives of six investment cases of Chinese Outward Foreign Direct Investment (OFDI) undertaken in European football clubs. Based on Dunning's OLI paradigm and the determinants-framework from Holtbrügge and Kreppel, a within-case and cross-case analysis was conducted. We reveal that the main motives of Chinese investments differ between asset-seeking and market-seeking to a combination of both. The most important determinants of OFDI were the size of the host market and the level of know-how in it, while firm-specific resources and the strategic importance of the industry for the home government was a joint determinant for all Chinese companies.

scholarly journals Measuring and Monitoring Sustainability in Listed European Football Clubs: A Value-Added Reporting Perspective

2020 ◽  
Author(s):  
Alessio Faccia ◽  
Leonardo Josè Mataruna-Dos-Santos ◽  
Hussein Munoz Helù ◽  
Daniel Range
Keyword(s):  
Value Added ◽  
Added Value ◽  
Sports Clubs ◽  
Distribution Of Wealth ◽  
Csr Reporting ◽  
A Value ◽  
Football Clubs ◽  
European Football ◽  
Working Principle ◽  
Fundamental Value

Sports are framed within the context of the Olympic spirit and are, therefore, within the vision and mission of the Olympic Committee, aimed at “building a better world”. This is identified as a fundamental value and sustainability is therefore explicitly considered to be a “working principle” of this. In this research an analysis of the performance of professional European football teams publicly listed on stock markets, restating the income statements according to the Value-Added perspective is carried out. This takes into account the effective sustainable contribution in the distribution of added value with reference to the human, structural, debt, infrastructural, and risk capitals of these organisations. The Value-Added Statement is considered as a part of the broader CSR Reporting and can be traced back to the late 1970s. However, it is in widespread contemporary use and is regarded as being both a credible and a tested measure. In this paper, the authors apply a slightly modified and simplified version of this tool to these publicly listed European football clubs as a proxy for wider professional sport. This research demonstrates that, although professional sports clubs are profit-oriented, the distribution of wealth generated by the added value is unbalanced. In most cases, at least in financial terms, shareholders are the most disadvantaged and athletes are the most rewarded.

scholarly journals European Football After COVID-19

2020 ◽  
Author(s):  
J. James Reade ◽  
Carl Singleton
Keyword(s):  
Local Communities ◽  
Look Ahead ◽  
Football Clubs ◽  
Financial Interests ◽  
European Football ◽  
Football Industry

The European football industry has suffered an unprecedented shock from COVID-19. In this chapter, we reflect on how the sport’s administrators responded to the initial outbreaks and what lessons can be learned. We also look ahead to what football in the post-COVID-19 era could look like. We conclude that this largely depends on the decisions now facing the sport’s administrators and the powerful owners of the biggest football clubs: will they prioritise football as the inclusive and diverse game, at the heart of local communities? Or will their intrinsic financial interests dominate?

scholarly journals Intellectual Capital Determinants of Football Clubs in Europe

2020 ◽  
Vol 27 (2) ◽  
pp. 8-13
Author(s):  
Igor Perechuda
Keyword(s):  
Intellectual Capital ◽  
Performance Indicators ◽  
Business Models ◽  
Value Added ◽  
Sports Performance ◽  
Leverage Ratio ◽  
Football Clubs ◽  
European Football ◽  
Football Industry ◽  
Basic Statistical Analysis

AbstractIntroduction. Existing research on football economics mostly focuses on some key performance indicators’ influence on the profitability of clubs. This assumption is a bit misleading in the context of football business models which deliver various benefits other than profits to its stakeholders. In this research, the opposite question was asked: what can determine the intangible value delivered by a football business? This is asked in light of the fact that most of the value created by the football industry belongs to the category of intellectual capital.Material and Methods. The study was based on the financial data of 33 European football clubs. Basic statistical analysis was carried out and regression analysis of chosen drivers influencing intellectual capital of football clubs in Europe was performed.Results. Three of the four assumed hypotheses were not confirmed: higher value of intellectual capital is correlated with higher profitability, higher values of IC efficiency (VAIC) are associated with higher levels of player value and values of IC efficiency (VAIC) are significantly associated with levels of sports performance. Just one hypothesis was confirmed that values of IC efficiency (VAIC) are significantly associated with salary efficiency (S/R). Additionally, the study revealed that there are two important factors influencing the value added intellectual coefficient (VAIC): debt and salaries.Conclusions. If we assume that VAIC is the goal of the managers, then the only two drivers which are significant for this value are salary ratio and leverage ratio. Moreover, we know that profit orientation of the football business in Europe is not the key goal in order to develop intangible values for the stakeholders.

scholarly journals Financial Performance Analysis in European Football Clubs

Entropy ◽  
2020 ◽  
Vol 22 (9) ◽  
pp. 1056
Author(s):  
David Alaminos ◽  
Ignacio Esteban ◽  
Manuel A. Fernández-Gámez
Keyword(s):  
Financial Performance ◽  
Essential Element ◽  
The Novel ◽  
Quantum Network ◽  
Quantum Neural Network ◽  
Football Clubs ◽  
Regulatory Bodies ◽  
European Football ◽  
Football Industry ◽  
Sporting Performance

The financial performance of football clubs has become an essential element to ensure the solvency and viability of the club over time. For this, both the theory and the practical and regulatory evidence show the need to study financial factors, as well as sports and corporate factors to analyze the possible flow of income and for good management of the club’s accounts, respectively. Through these factors, the present study analyzes the financial performance of European football clubs using neural networks as a methodology, where the popular multilayer perceptron and the novel quantum neural network are applied. The results show the financial performance of the club is determined by liquidity, leverage, and sporting performance. Additionally, the quantum network as the most accurate variant. These conclusions can be useful for football clubs and interest groups, as well as for regulatory bodies that try to make the best recommendations and conditions for the football industry.

scholarly journals STRATEGIC MANAGEMENT OF FOOTBALL CLUB DURING THE COVID-19 PANDEMIC

2021 ◽  
Vol 12 (1) ◽  
pp. 50-57
Author(s):  
I. V. Solntsev
Keyword(s):  
Strategic Management ◽  
Academic Research ◽  
Football Clubs ◽  
Strategic Measures ◽  
The Face ◽  
European Football ◽  
Football Industry ◽  
The Impact ◽  
First Time ◽  
The Eu

This research is aimed  to analyze the impact of the coronavirus pandemic on professional football clubs, identify the problems they face and propose strategic anti-crisis measures. The work is based on the analysis of the mapping study on measuring the economic impact of COVID-19 on the sport sector in the EU, provided by European Commission; analytical reports from Deloitte and KPMG containing empirical data on European football, academic research by foreign scientists examining the impact of the pandemic on the football industry. The study resulted in the author's strategic measures to improve the efficiency of football clubs in the face of restrictions caused by the spread of coronavirus, and a system of performance indicators (KPI), concerning the business developments during a pandemic. These results can be used in the strategic management of football clubs, as well as in the development strategies of federations, leagues and individual clubs, and can lead to an increase in the overall efficiency of their activities and the achievement of economic and social results. For the first time, the work carried out a comprehensive study of the consequences of the pandemic for the development of the football industry and offered the author’s view of solving current problems and finding new ways to develop the football business.

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