Value‐maximizing football clubs

Prinz, Aloys; Thiem, Stefan

doi:10.1111/sjpe.12282

Cited by 3 publications

References 38 publications

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Objectives pursued by European football clubs: compete for income through victories and media exposure

Garcia-del-Barrio,

Rossi

2024

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PurposeThe paper aims to revisit the debate on the priorities of football clubs in talent hiring with respect to maximizing sporting performance or economic profitability. Based on the degree of media exposure of the clubs, we examine whether the clubs’ objectives include, in addition to the classic twofold choice, the aspiration of club managers to gain popularity through media exposure.Design/methodology/approachThis paper applies structural equation modelling (path analysis) techniques to re-examine what is the more realistic description of football club owners’ decisions when hiring talent. Our database comprises teams from the first division of four top European football leagues: 80 observations per season during the pre-COVID period spanning from 2009/10 to 2017/18.FindingsThe results suggest that, when recruiting players, in addition to considering the two classic objectives (wins and profits), club owners also seem to aim expanding the media exposure and popularity of their clubs. Our study reveals that, to explain talent-hiring decisions in football, the ability to attract media attention is as crucial as sporting performance could be. Furthermore, by examining the direct, indirect and total effects on annual revenue, we found that our media visibility index performs a mediation effect connecting sports performance and revenue.Originality/valueAn innovative feature of our analysis is the use of the MERIT media visibility index, which jointly captures the on-field and off-field players’ skills. The consistency and robustness of the results derive from the various specifications of the estimated models.

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Objectives pursued by European football clubs: compete for income through victories and media exposure

Garcia-del-Barrio,

Rossi

2024

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Best Fit Player Acquisition and Squad Personnel System in Football for Sports

Benjamin¹,

Sreedeep²,

Dhanalakshmi³

et al. 2022

2022 1st International Conference on Computational Science and Technology (ICCST)

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The economic limit on sporting success: how can football industry develop?

Platonov,

Kuziaev

2023

Mod. innov. razvit.

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Purpose: of the article is to develop recommendations for the development of football enterprises based on the study of the economic causes of the phenomenon of "overeinvestment" in the football industry.Methods: regression based on the Cobb-Douglas production function with data from the Russian Tax Service database as well as data of the Russian premier league (RPL) for 2018–2022. Results: football industry suffers extreme diseconomies of scale in persuade for sporting success unlike the most other industries. Success in RPL statistically significantly determined not only by labor costs but as well as by capital costs. At the same time, the elasticity of the league outcome to labor costs is somewhat lower than that of capital costs. By getting higher league standing by boosting costs a team enters on plateau of vanishing sporting gains. The predicted dependence of the performance in RPL based on costs pattern is very close to the actual data, including the economic limit of the maximum league outcome. Alongside the labor costs, other tangible and intangible factors are significant, especially for clubs with sustainable competitive advantage and better ability to sustain diseconomies of scale.Conclusions and Relevance: the root cause of overinvestment in football industry is the extreme diseconomies of scale, with other factors being consequences. The development of the industry is possible by combination of sporting and business performance by producing entertainment and information products. Sustainable advantage requires the development of intellectual capital, which improves returns and resilience to rising costs. It requires innovation to develop resources and capabilities of the football enterprise e.g. network capital and organizational know-how.

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Value‐maximizing football clubs

Cited by 3 publications

References 38 publications

Objectives pursued by European football clubs: compete for income through victories and media exposure

Objectives pursued by European football clubs: compete for income through victories and media exposure

Best Fit Player Acquisition and Squad Personnel System in Football for Sports

The economic limit on sporting success: how can football industry develop?

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