Monetizing social value in sports clubs

Abstract

PurposeEuropean elite professional basketball clubs do not pursue economic profit maximization per se, but they also seek to create social value for stakeholders due to the community outreach and the emotional bonding that such organizations create. Here the purpose of this paper is to use an accounting system called social accounting to measure the social effects of an organization's activity in an effort to monetize and describe the holistic value created by these sports organizations for their stakeholders.Design/methodology/approachThis study applies an adapted, redesigned social accounting using SPOLY methodology to two elite basketball clubs in the ACB League (Spanish First Division), in order to monetize their social value. This methodology integrates non-market social value (value created for stakeholders without a financial transaction) with market social value (value created for stakeholders through market transactions), by monetizing validated dimensions for non-market and market social value obtained via information provided by clubs and their financial statements.FindingsClubs create a quantifiable social value for stakeholders through non-market and market dimensions. Value creation is not merely restricted to securing financial profit for shareholders but rather takes on another dimension in which the various stakeholders receive a holistic value from clubs.Originality/valueThis study provides evidence that clubs generate a quantifiable social value for their stakeholders that complements their economic value. This can help clubs to set up their own narrative concerning value creation for stakeholders and enable them to convey and manage the overall distributed value for stakeholders.

Guest editorial: SBM Special Issue EURAM 2021 Conference – reshaping capitalism for a sustainable world – best papers from the Managing Sport SIG

“…The fourth and final article of this Special Issue is a conceptual article. It suggests a definition for sport event innovation and a research agenda for scholars in the domain of sport event innovation.The first article in this Special Issue, entitled "Monetising social value in sports clubs", is authored by Mendizabal Leiñena et al (2022). It provides an interesting example on how market and non-market social value can be accounted for in the context of elite sport organisations.…”

“…The first article in this Special Issue, entitled "Monetising social value in sports clubs", is authored by Mendizabal Leiñena et al (2022). It provides an interesting example on how market and non-market social value can be accounted for in the context of elite sport organisations.…”