Search results

The purpose of this paper is to analyse the demand for tickets in the Brazilian State Championships focussing in the impact generated by the brand teams as well as the play-off matches in the demand for tickets and, consequently, in the match day revenues.

An equations system by three-stage least square estimator is employed. The data set comprises 1,114 matches from Mineiro, Carioca and Paulista Championships over the seasons 2013-2015.

All explanatory variables increase both attendance and match day revenues. However, the most important goal is the distribution of wealth found. The presence of brand teams in those championships provides a financial aid for smaller teams.

The proposals from the mass media to exclude the brand teams and design those championships exclusively in play-off stages should not be implemented by the policymakers. On the contrary, rearranging the design of the competition with more matches between small teams and brand teams may help to all of them.

The paper contributes to introduce the Brazilian State Championships in the sport economics literature as well as evidences the redistribution effect of wealth among clubs.

In 2009, the Union of European Football Associations approved the Financial Fair Play (FFP) regulations. These regulations refer to the requirements of transparency and financial conditions for football clubs participating in European competitions. The purpose of this paper is to combine the managerial and the economic points-of-view in order to understand if Italian football clubs are ready to comply with the new FFP rules.

In the analysis, the authors focus on the main Italian football league, Serie A. Using business model analysis, the authors determine what the main profit determinants of football associations are, through panel data for 15 clubs from 2011-2013. The authors then try to match the statistical and managerial approach.

The results show that the key contributing factors to profits are on the costs side. In particular, the most relevant expenses are player wages. The core revenue for clubs comes from the net profit from player trading, while other income, such as TV rights, commercial and match-day proceeds, have no statistical significance for profit formation.

The main limitation of the analysis is that the survey regarded only on Italian Championship. So it is deeply influenced by the competitive structure of the Italian league that is different from that of other European leagues. Therefore, the authors think that the future developments of this work could be the examination of another European Championship, for example, English Premier League, and the compared analysis of Italian league and other European one.

There is a close-link between costs and profitability, and especially between expenditure on players and the ability to close the financial year with a profit. Clubs must address the issue of player wages in order to follow a path of economic recovery towards profitability.

In the work the authors put together managerial point of view and economical one, in order to understand how FFP can impact on profitability of football clubs. The authors use an empirical econometrics model to test the hypothesis about business model of Italian Clubs.

Attendance at matches in the smaller European football leagues is challenged by the increased number of live broadcast matches, particularly covering the biggest leagues. The purpose of this paper is to analyse the effects of live broadcasting, match scheduling and other factors on stadium attendance in the top division of Norwegian football.

The analysis is based on a fixed effects regression model on attendance at match levels covering the period 2005 to 2011.

The main results show two different effects. While live broadcast domestic matches on “free TV” is positively correlated to stadium attendance, the increased number of “imported” matches from the big-five leagues is a substitute. Moreover, matches played on weekdays have a lower level of attendance than weekend matches.

The increased number of imported live broadcast football matches from the biggest European leagues influences and widens the financial gap between the biggest and the smaller football leagues. One possible solution for reducing the substitution effect from these matches is a more efficient match schedule in the Norwegian top division in football.

Norway has a small population with a high interest for football. This paper measures effects on attendance in the Norwegian top division in football matches with regards to the increased number of live broadcast matches both from the domestic league and from the big five football leagues.

Professional football clubs currently strive for a number of concurrent goals, ranging from on-field success to profit maximization to fan expansion and engagement. The purpose of this paper, theoretically informed by the social penetration theory, is to analyze the economics behind such goals and examine the association between team performance, commercial success, and social media followers in professional team sports.

A data set relating to 20 European professional football clubs that combines financial (revenues and costs), sporting, and digital-reach measures for three consecutive football seasons (2013/2014 to 2015/2016) was used. In addition, to elaborate on this data in terms of a descriptive study, the study constructs a range of correlation statistical tests and linear modeling techniques to obtain quantitative results.

The results indicate that all the three main sources of club revenues (match-day, commercial/sponsorship, and broadcasting) are positive drivers for Facebook followers. Staff investments (staff costs) are also positively related to Facebook followers, albeit to a lesser extent, while higher-ranked clubs seem to follow a constant approach in terms of their revenues and cost structure.

This study seeks to bridge the communication and sport economic research, providing evidence that Facebook followers are part of the cyclical phenomenon of team revenues and team performance. In doing so, it initiates a debate on the relationship between the digital expansion of a football club and its sports and financial indicators.

The purpose of this paper is to analyse simultaneously the effect of attendance at the stadium on the size of the TV audience, taking into account the effect of price and uncertainty of outcome hypothesis on both the TV audience and stadium attendance. The paper assumes that a home-team effect exists and influences potential spectators’ decision to go to the stadium or to stay at home.

The data set consists of all 228 matches broadcast live and on open air from the Brazilian League across the seasons 2013–2015. The econometric approach of the present paper is based on three simultaneous equations through the Three-Stage Least Square estimator. This method is chosen in order to avoid endogeneity between ticket prices and live attendance and, consequently, with the television audience, too.

This work finds a correlation between TV audience and attendance at the stadium. However, it has been demonstrated that those matches that are more expensive have a larger TV audience. Scheduling and UO appear to be relevant for TVs and clubs. Scheduling is relevant, as weekend matches have a smaller TV audience but higher attendance at the stadium.

The findings indicate that Brazilian football clubs should find optimal prices for matches in order to maximise both TV audience and attendance.

Analysing simultaneously the effect of attendance at the stadium on the size of the TV audience, taking into account the effect of price on all three of these variables, is new. Another novel aspect is the use of data on audience size to observe a possible substitution effect. The authors also distinguish between home and away matches, assuming that a home-team effect exists and influences potential spectators’ decision to go to the stadium or to stay at home.

In the current economic climate, the huge rise in the levels of debt incurred by professional football clubs challenges the need to improve their efficiency levels. Hence, analysis of their productivity is essential and represents an integral dimension to any realistic and efficient strategy. Any such strategy includes the identification and analysis of the inputs and outputs that underpin club sustainability. The purpose of this paper is to evaluate the relationship between the team performance of professional European football clubs and the stability of their financial efficiency.

The sample spans 15 professional football clubs that won the league titles in the leading football leagues (the English, German, Spanish, Italian and French leagues) in the period between 2009 and 2014. The analysis made recourse to the data envelopment analysis method.

The results demonstrate that of the 15 clubs analysed, only 10 proved efficient. Football is now an industry that moves major quantities of financial capital and holds the attentions of large groups of fans worldwide. However, despite this attractiveness, the financial crisis and recession, ongoing since 2008, increasingly requires the better management of such resources. To this end, clubs should improve their control over the financial resources available given the positive relationship prevailing between the sporting performance of clubs and their levels of financial efficiency.

Analysis of the efficiency levels of the inputs and outputs encapsulating performance related financial variables may aid in improving the standards of planning and sustainable management at professional sport clubs.

The addition of products to the core of matches by professional sports teams (PSTs) has received much coverage. However, there has been limited work as to how their stadiums are used to stage non-sporting events. The purpose of this paper is to investigate how clubs in the English Football League (EFL) use their venues to diversify into other markets.

Secondary sources were used to categorise the teams who played in the EFL by: average division turnover, stadium capacity and stadium age. Semi-structured interviews were held with a member of the commercial teams of 21 clubs.

Clubs use their stadiums to supply a range of products and working with partners is commonplace. These products are targeted at a range of stakeholders, such as supporters, the local community and regionally based organisations. In addition to their own efforts, increased geographical coverage for clubs usually develops in three ways: via internal marketing by local organisations who use the facilities, agents who market the stadium for the club and the EFL who market the league/clubs holistically.

The use of a stadium allows PSTs to diversify by providing new products for new markets. In this instance it has led to the development of capabilities in areas such as conferencing, funerals and weddings.

This is one of the first papers to examine the capabilities developed by PSTs that lie outside the staging of matches.

The purpose of this paper is to propose a model to evaluate the factors that influence soccer attendance at stadiums and arenas.

The quantitative method based on a structural equation modeling using partial least squares.

The results validated the proposed model. The results also showed that the greater the identification of the sports consumer with his team, the greater the impact on his satisfaction, increasing his loyalty to the team and his intention to buy tickets for a soccer match. It was also detected that the higher the risk perception, the lower the purchase intention of tickets. In addition, the study showed that the greater the involvement of sports consumers with soccer, the greater their intention to buy tickets.

One of the academic implications was to prove that team identification can be a predictor of satisfaction, and that the interrelationship between identification with the team, satisfaction at attending soccer matches at the stadium and loyalty to the team constructs has a high impact on the purchase decision of the sports consumer. In addition, the study tests a model that aggregates several constructs with empirical data for other researchers to better understand the phenomenon of attendance in stadiums and arenas.

Corporate sports hospitality (CSH) is a relationship marketing tool whereby customers and other stakeholders are invited by a company buying CSH from a club to attend a sports event. The CSH product involves premium seating and optional services such as catering. This industry has been perceived to be in decline, especially in times of economic downturn. The purposes of this paper are a quantification of the CSH industry’s value and the development of a formal CSH management process for both companies and clubs.

A case study from the highest division in Belgian football (soccer) is conducted, involving interviews and quantitative data collection as the primary data source, in addition to secondary data and insights from the literature. As opposed to literature, this paper uses a holistic approach, combining the perspective of the club and the CSH buying company with attention for customers.

CSH returns account for an important share of club revenues (>10%), despite the smaller market compared to the American major sports leagues. Since a club experiences the strongest competitive impact from substitutes and other clubs in the league, and CSH is often managed on an ad hoc base, disposing of a formal management process is crucial for both clubs and companies. For companies buying CSH, not only return on investment but also return on other objectives matters. Moreover, CSH is at least as effective to deepen existing business relationships as to create new ones.

The paper provides clubs and companies with a theoretic background and practical key performance indicators (KPIs) to base their managerial decisions on. Although external validity to other Belgian venue-based sports can reasonably be assumed, translating the findings to other countries or non-venue based sports requires caution.

Little academic research about the CSH industry is available. Specific KPIs to define objectives and measure output, as well as feedback loops for clubs and companies, are developed. The proposed CSH management process follows the same high-level steps, but with different specific actions per actor, leading to a better understanding of similarities and differences of both processes, and a better co-creation of the CSH event.