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1 – 10 of over 1000Resource-based view (RBV) theory (Barney, 1991; Barney and Mackey, 2016; Nagano, 2020) states that a firm’s tangible and intangible resources can represent a sustainable…
Abstract
Theoretical basis
Resource-based view (RBV) theory (Barney, 1991; Barney and Mackey, 2016; Nagano, 2020) states that a firm’s tangible and intangible resources can represent a sustainable competitive advantage (SCA), a long-term competitive advantage that is extremely difficult to duplicate by another firm, when it meets four criteria (i.e. not imitable, are rare, valuable and not substitutable). In the context of this case, we believe there are three sources of SCA to be discussed using RBV – the major league soccer (MLS) team player roster, the use of artificial intelligence (AI) technologies to exploit this roster and the league’s single-entity structure: • MLS players: it has been widely acknowledged that a firm’s human resource talent, which includes professional soccer players (Omondi-Ochieng, 2019), can be a source of SCA. For example, from an RBV perspective, a player on the Los Angeles Galaxy roster: > cannot play for any other team in any other league at the same time (not imitable and are rare), > would already be a competitive player, as he is acquired to play in the highest professional league in the country (valuable) and > it would be almost impossible to find a clone player matching his exact talent characteristic (not substitutable) anywhere else. Of course, the roster mix of players must be managed by a capable coach who is able to exploit these resources and win championships (Szymanski et al., 2019). Therefore, it is the strategic human resource or talent management strategies of the professional soccer team roster that will enable a team to have the potential for an SCA (Maqueira et al., 2019). • Technology: technology can also be considered a source of SCA. However, this has been a source of contention. The argument is that technology is accessible to any firm that can afford to purchase it. Logically, any MLS team (or for that matter any professional soccer team) can acquire or build an AI system. For many observers, the only obvious constraint is financial resources. As we discuss in other parts of the case study, there is a fan-based assumption that what transpired in major league baseball (MLB) may repeat in the MLS. The movie Moneyball promoted the use of sabermetrics in baseball when making talent selection (as opposed to relying exclusively on scouts), which has now evolved into the norm of using technology-centered sports analytics across all MLB teams. In short, where is the advantage when every team uses technology for talent management? However, if that is the case, why are the MLB teams continuing to use AI and now the National Basketball Association (NBA), National Football League (NFL) and National Hockey League are following suit? We believe RBV theorists have already provided early insights: > “the exploitation of physical technology in a firm often involves the use of socially complex firm resources. Several firms may all possess the same physical technology, but only one of these firms may possess the social relations, cultural traditions, etc., to fully exploit this technology to implementing strategies…. and obtain a sustained competitive advantage from exploiting their physical technology more completely than other firms” (Barney, 1991, p. 110). • MLS League Single-Entity Structure: In contrast to other professional soccer leagues, the MLS has one distinct in-built edge – its ownership structure as a single entity, that is as one legal organization. All of the MLS teams are owned by the MLS, but with franchise operators. The centralization of operations provides the MLS with formidable economies of scale such as when investing in AI technologies for teams. Additionally, this ownership structure accords it leverage in negotiations for its inputs such as for player contracts. The MLS is the single employer of all its players, fully paying all salaries except those of the three marquees “designated players.” Collectively, this edge offers the MLS unparalleled fluidity and speed as a league when implementing changes, securing stakeholder buy-ins and adjusting for tailwinds. The “socially complex firm resources” is the unique talent composition of the professional soccer team and most critically its single entity structure. While every team can theoretically purchase an AI technology talent management system, its application entails use across 30 teams with a very different, complex and unique set of player talents. The MLS single-entity structure though is the resource that supplies the stability required for this human-machine (technology) symbioses to be fully accepted by stakeholders such as players and implemented with precision and speed across the entire league. So, there exists the potential for each MLS team (and the MLS as a league) to acquire SCA even when using “generic” AI technology, as long as other complex firm factors come into play.
Research methodology
This case relied on information that was widely reported within media, press interviews by MLS officials, announcements by various organizations, journal articles and publicly available information on MLS. All of the names and positions, in this case, are actual persons.
Case overview/synopsis
MLS started as a story of dreaming large and of quixotic adventure. Back in 1990, the founders of the MLS “sold” the league in exchange for the biggest prize in world soccer – the rights to host the 1994 Fédération Internationale de Football Association World Cup before they even wrote up the business plan. Today, the MLS is the highest-level professional men’s soccer league competition in the USA. That is a major achievement in just over 25-years, as the US hosts a large professional sports market. However, MLS has been unable to attract higher broadcasting value for its matches and break into the highest tier of international professional soccer. The key reason is that MLS matches are not deemed high quality content by broadcasters. To achieve higher quality matches requires many inputs such as soccer specific stadiums, growing the fan base, attracting key investors, league integrity and strong governance, all of which MLS has successfully achieved since its inception. However, attracting high quality playing talent is a critical input the MLS does not have because the league has repeatedly cautioned that it cannot afford them yet to ensure long-term financial sustainability. In fact, to guarantee this trade-off, the MLS is one of the only professional soccer leagues with an annual salary cap. So, the question is: how does MLS increase the quality of its matches (content) using relatively low cost (low quality) talent and still be able to demand higher broadcast revenues? One strategy is for the MLS to use AI playing technology to extract higher quality playing performance from its existing talent like other sports leagues have demonstrated, such as the NFL and NBA. To implement such a radical technology-centric strategy with its players requires the MLS to navigate associated issues such as human-machine symbioses, risking fan acceptance and even altering brand valuation.
Complexity academic level
The case is written and designed for a graduate-level (MBA) class or an upper-level undergraduate class in areas such as contemporary issues in management, human resource management, talent management, strategic management, sports management and sports marketing. The case is suitable for courses that discuss strategy, talent management, human resource management and brand strategy.
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Beth G. Clarkson, Keith D. Parry, Alex Culvin and Stacey Pope
Women's football faces an existential threat from COVID-19. Using case studies, the authors explore the COVID-19 responses of three highly ranked national football associations…
Abstract
Purpose
Women's football faces an existential threat from COVID-19. Using case studies, the authors explore the COVID-19 responses of three highly ranked national football associations (Australia, England and the USA) and their professional women's football leagues to (a) compare and shed new insights into the wide range of phased responses and (b) establish recommendations for other nations to navigate major crises with their social and ethical responsibilities to women's football.
Design/methodology/approach
Drawing on institutional theory, a framework analysis was undertaken examining 71 articles to analyse the gendered global impacts of COVID-19 on women's football.
Findings
Results highlight several important recommendations for nations to consider during the pandemic: (1) maintain active communication with the community to allay worries about the future of women's football, (2) gather support from health and government officials, (3) seek out commercial and broadcasting partnerships to drive revenue, and (4) the interests of women's football are best served when responsibility for the elite women's league does not rest (solely) with national football associations.
Social implications
The authors argue that sport is an interwoven part of society and cannot be separated from gender equality issues irrespective of the pandemic.
Originality/value
The study is first to explore institutional pressures and football governing bodies during COVID-19 and provides a framework for nations to manage major crises.
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Kieran James, Chris Tolliday and Rex Walsh
The purpose of this paper is to review the cancellation of Australia's National Soccer League (NSL) competition and its replacement in 2004 with the corporatist A‐League which is…
Abstract
Purpose
The purpose of this paper is to review the cancellation of Australia's National Soccer League (NSL) competition and its replacement in 2004 with the corporatist A‐League which is based on the North American model of “one team one city”, no promotion and relegation, and private‐equity clubs. The authors believe that one of the aims of the A‐League and its “ground‐zero” ideology was to institute exclusion of the ethnic clubs that had formed the backbone of the NSL for 30 years.
Design/methodology/approach
Extensive literature search, participant‐observation, one personal interview and two group interviews were employed. People interviewed were the President of the Croatian community's Melbourne Knights Football Club, the Club Secretary of Melbourne Knights, and three leaders of Melbourne Knights’ MCF hooligan firm.
Findings
The authors observe the Football Federation Australia hiding behind the perceived scientific nature and technical veracity of budgeted accounting numbers to set the financial bar too high for the ethnic clubs to find a place in the brave new world that has been called “Modern Football”. However, capitalism creates its own discontents. Online forums and homemade fence banners are the new vehicles for dissent for the supporters of “Old Soccer”.
Originality/value
There is still only a small academic literature on Australian football and most of this has been written by humanities lecturers. The paper offers a business school perspective.
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Heath McDonald, Adam J. Karg and Daniel Lock
It is not uncommon for sports fans to follow multiple sports teams across different sports and even several teams across different leagues of the same sport. Whereas this might be…
Abstract
Purpose
It is not uncommon for sports fans to follow multiple sports teams across different sports and even several teams across different leagues of the same sport. Whereas this might be considered a competitive situation, the purpose of this paper is to examine how interest in overseas football (soccer) leagues played a symbiotic role in the successful development of an Australian national soccer league.
Design/methodology/approach
Results of survey data are presented from two clubs in Australia's newly formed A‐League. Three surveys were conducted over a two year period with over 3,700 season ticket holders. Specific attention is paid to fans' previous interest and exposure to football, which is then related to attitudes and behaviour associated with the new clubs.
Findings
Interest in overseas clubs and leagues is found to be a major antecedent of interest in the Australian league. Those who follow teams in overseas leagues are more likely to be heavy consumers of the new local league than those who follow local leagues or had no prior experience. They also exhibit stronger attitudinal and behavioural loyalty, such as higher attendance and renewal rates of season tickets.
Practical implications
Recognising fan interest in multiple teams/leagues as positive involves a shift in management thinking away from a competitive to a collaborative stance. In this case, rapid adoption of new teams is encouraged by capitalising on strong interest in overseas leagues. This requires careful structuring and branding of the competition that mimicks familiar foreign leagues, while minimising unfavourable comparisons in areas like quality of play.
Originality/value
This study capitalises on the rare opportunity to examine foundation teams in a new national league. The findings highlight the importance and value of taking a “global” perspective to the marketing of sports, and of carefully leveraging the interest in other elite competitions to build interest in new leagues.
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Yongqiang Gao, Yingli Wang and Taïeb Hafsi
Drawing on the affect transfer and stakeholder theories, this study aims to examine how the performance of a sports team that a firm owns or sponsors may affect the firm’s market…
Abstract
Purpose
Drawing on the affect transfer and stakeholder theories, this study aims to examine how the performance of a sports team that a firm owns or sponsors may affect the firm’s market value. It explicates that a sports team wins (loses) in the field raises the public’s positive (negative) affect, which can spill over to the associated firm.
Design/methodology/approach
Based on a sample of publicly listed firms in Chinese stock exchanges that are owners or sponsors of soccer teams that competed in the National soccer league of China during 2004–2017, the authors find good support for the hypotheses.
Findings
The findings reveal that a firm’s cumulative abnormal return is positively related to its soccer team’s winning and negatively related to the team’s losing, and these relationships are moderated by both firm and match characteristics. By showing a relationship between sports team’s performance and associated firm’s market value, executives need cautions when their firms want to own or sponsor sports team. However, owned sports team’s winning could be a good strategy to improve a firm’s market value.
Originality/value
This study enriches the spillover literature and deepens the understanding of spillover effect. It provides evidence for the concept of affect transfer and broadens its application scope.
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Timothy Kellison and Beth A. Cianfrone
In this study, the authors examine consumer attitudes toward a professional soccer club’s proenvironmental initiatives and evaluate whether key themes are consistent with those…
Abstract
Purpose
In this study, the authors examine consumer attitudes toward a professional soccer club’s proenvironmental initiatives and evaluate whether key themes are consistent with those found in previous research of fans in different sporting contexts.
Design/methodology/approach
The authors analyzed empirical material provided by 147 highly identified supporters of a Major League Soccer team. Using template analysis, the authors compared codes, categories and themes with those previously identified in a reference group of National Football League (NFL) fans.
Findings
Twenty-three preliminary codes, nine categories and four themes were established by the researchers. Three themes – Considering Environmental Action, Business Insights and Impacting the Fan Experience – were all consistent with the NFL reference group. A fourth theme, Public Visibility, focused on the possibility that the club’s proenvironmental initiatives could provide a competitive advantage over rival cities and positively influence local programming and behaviors.
Originality/value
The results of this study support the notion that fan characteristics may differ across various demographic and structural contexts and fans’ recognition that a club could leverage its community standing to promote proenvironmental action.
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This paper investigates the role of competitive balance among teams in a league in predicting attendance at spectator sporting events. It also controls for the demographic and…
Abstract
This paper investigates the role of competitive balance among teams in a league in predicting attendance at spectator sporting events. It also controls for the demographic and economic characteristics of the league's markets, and changes in the number of teams in the league. The research relies on a sample that includes 707 non-major professional team seasonal win-loss records (12,956 games) from five sports, aggregated into 75 seasons to develop a model consistent with extant literature. The authors find that competitive balance and average income in the league's markets are significant predictors of leaguewide attendance.
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Diego Gutierrez, James J. Zboja, Kristie Briggs and Kathleen M. Sheehan
The primary purpose of this study is to examine how fan attendance at team special events and player appearances impact fan consumption (as measured by merchandise sales)…
Abstract
Purpose
The primary purpose of this study is to examine how fan attendance at team special events and player appearances impact fan consumption (as measured by merchandise sales). Insights obtained could shed light on opportunities for professional soccer teams to expand revenues through enhanced fan consumption of goods and services.
Design/methodology/approach
A sample of 499 season ticket holders were used to assess fan consumption by measuring merchandise sales. Ordinary least squares (OLS) regressions were run for merchandise sales as the dependent variable of fan consumption. The control variables were age, gender (male = 1, 0 otherwise), and whether an individual has children.
Findings
The key independent variables of attending special events and fan–player bonding were both found to have a statistically significant impact on merchandise sales. Results show that each additional special event attended generates up to $33.71 in merchandise sales for the club. Similarly, each fan–player bonding experience attended also has a direct impact, increasing merchandise consumption by $23.00.
Social implications
The results of this study provide insights that can help fan consumption grow within the professional United States soccer industry and better allow team managers to make decisions about the possible benefits of holding more special events and fan–player bonding experiences. The findings also confirm the impact personal relationships with fans can have on the bottom line of sport franchises.
Originality/value
Though this study adds to the body of literature by expanding previous work on fan consumption, there are limited studies on the social aspects of consumption which are examined and analyzed within this study, particularly of note is the study of merchandise sales as proxy for fan consumption.
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