Are diversified football clubs better prepared for a crisis? First empirical evidence from the stock market

Fühner, Johannes; Schmidt, Sascha L.; Schreyer, Dominik

doi:10.1080/16184742.2020.1862273

Cited by 15 publications

(13 citation statements)

References 102 publications

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“…The digital pull for business innovations caused by the COVID-19 shock, as well as the abrupt effort of top European clubs, including five from the Premier League, to establish the European Super League, make teams look for novel business opportunities and more sustainable operations in the future (cf. Fühner et al 2021;Lopez et al 2021).…”

Section: Discussion Of the Resultsmentioning

confidence: 99%

Business model innovation for sustainable operations in professional football: How supporters gain more control of the Beautiful Game

Kozma

Teker

2022

SocEc

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We aim to explore whether ongoing digital innovations in Premier League clubs may substantiate a prospective change in their business model and potentially lead to a solution to the financial sustainability issue in professional football. Our exploratory study is to identify ongoing digital innovations and what changes can be foreseen in future years. The empirical analysis is based on information collected from club webpages, their selected social media pages, and top sports business journals. Our results indicate that despite the numerous digital innovations already implemented in the clubs, their utilisation has not reached a level to justify a more complex business model innovation. However, several changes indicate that such a fundamental transformation will likely happen in the foreseeable future. Our work's scholarly contribution is exploring a novel field of study concentrating on the digitally focused business model innovations of professional clubs, unlike most football business model analyses that focus on leagues. We have concluded that clubs can and should apply business innovations to look for more financially sustainable operations, even without necessarily waiting for changes to be made in the generic competitive structure they perform in.

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Section: Discussion Of the Resultsmentioning

confidence: 99%

Business model innovation for sustainable operations in professional football: How supporters gain more control of the Beautiful Game

Kozma

Teker

2022

SocEc

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“…Holzmayer and Schmidt, 2020a, b; Storm, 2009). Recent research has shown that clubs with high levels of product diversification are better protected against the impact of the first wave of the Covid-19 pandemic (Fuhner et al , 2021). Given the financial difficulties that clubs would have faced without governmental support, the governing bodies, i.e.…”

Section: Discussionmentioning

confidence: 99%

French men's professional basketball under the economic shock of the Covid-19

Carin

Desquennes

Jaworski

et al. 2021

SBM

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PurposeThe purpose of this paper is to analyse the economic effects of Covid-19 on French men's professional basketball club championships. Three research questions are raised: What are the characteristics of the economic model of French men's professional basketball? Has this economic model changed over the 2008/2009 to 2018/2019 period? What are the economic effects of the Covid-19 crisis on the finance of French men's professional basketball clubs?Design/methodology/approachRelying on a privileged access to the financial data of professional clubs in the two top-tier divisions (456 observations: 222 in Pro A/Jeep Elite and 234 in Pro B), this research focuses on economic models of French men's professional basketball clubs. The breakdown of revenues, expenses and financial performance is examined over the 2008/2009 to 2018/2019 period. The short-term economic effects of Covid-19 are measured over the 2019/2020 and 2020/2021 seasons.FindingsThe Covid-19 crisis, at least in the short term (2019/2020 season), has affected revenues and expenses. With the closedown of the championship, two out of three main revenue sources have significantly decreased, while two main expense sources have decreased as well. The net incomes of Jeep Elite and Pro B clubs are in the black contrasting with the 2018/2019 season (pre-Covid) owing to clubs having benefited from governmental and federal measures and a stronger support from local authorities and their shareholders.Practical implicationsGiven the financial difficulties that clubs would have faced without governmental support, the federation and leagues would be well advised to develop a real crisis management competence within professional clubs. Owners of French professional men’s basketball clubs must increasingly adopt product diversification strategies to be better prepared for future crises.Originality/valueRecent research on the economic effects of Covid-19 has focused on professional and amateur football. To the best of our knowledge, one does not avail detailed research on the potential effects of a health crisis fought with containment measures on professional basketball clubs. French professional basketball deserves to be studied because it has the third largest professional league revenue (behind football and rugby) and it is the second most practiced sport in France. Its sources of finance, which are different from those witnessed in football and rugby, also make it an appropriate subject for study.

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“…For instance, several industry analysts consider sports businesses as "recession-proof" due to the strong "liaison" that ties together the public, their favourite teams and sports competitions. Football has, in fact, become "the" new religion as contemporary society has been increasingly secularizing and ordinary citizens seek fulfilment not from sport in general, but from football in particular (Foer, 2005;Siddiqui et al, 2019;Carlin, 2021). However, experts also believe that future sports business models will inevitably change, putting more emphasis on sustainability, and paying more attention to the content of personnel contracts and insurance premiums to better support the activities of athletes, personnel and sports centres in the case of disruptive events (Keshkar et al, 2021;Comoli et al, 2023).…”

Section: Introductionmentioning

confidence: 99%

“…vandalism, noise and damage on match days), gender and diversity abuse, and the power relations of key actors in the delivery of football (Andon and Free, 2019; Philippou et al ., 2022). Prior literature has already investigated the re-start of professional competitions (Bryson et al ., 2020; Reade et al ., 2020), the football operations recovery (Carmody et al ., 2020; Corsini et al ., 2020; Dores and Cardim, 2020; Buldú et al ., 2020; Mohr et al ., 2020; Parnell et al ., 2020) and the short-term COVID-19 impacts on the European football ecosystem (Fühner et al ., 2020; Clarkson et al ., 2020; Webb, 2020). Yet, the effects of the COVID-19 pandemic as a catalyst in the transformation process of sports management towards sustainable practices in the long-term remain an open question: this study aims precisely to contribute to this debate, fitting into the wider discussions on organizational change within the football business, as sports governance has evolved to meet new environmental challenges and uncertainties in the context of crisis management (Parnell et al ., 2021; Sato et al ., 2022; Byers et al ., 2022; Comoli et al ., 2023).…”

Section: Introductionmentioning

confidence: 99%

The quest for sustainable sports management: evidence from the football industry

Tettamanzi,

Grazioli,

Murgolo

2023

SBM

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PurposeThis study investigates how the COVID-19 pandemic has affected the sustainability of sports business models by means of a specific case analysis, conducted on M-I Stadio S.r.l., the service management firm that provides all types of backstage activities related to football matches performed at San Siro Stadium in Italy.Design/methodology/approachBuilding on interviews on its management team's direct experience and on archival data, the authors depict the consequences of the pandemic in terms of corporate governance, accounting choices and overall strategic business development through information triangulation from a forward-looking perspective.FindingsComplying with restrictions, M-I Stadio S.r.l. preserved its financial position by embracing digitalization, increasing information flows with partners and adopting a risk aversion behaviour. Overall, results indicate that the pandemic played a catalyst role in the transformation process of the football industry. Moreover, apart from the physical and virtual merge acceleration, well-being for athletes, society and the planet, transcending the gaming part of sports activities has also been taking place. The study also illustrates the foreseeable developments of sustainable sport management practices from a critical perspective.Originality/valueSince the San Siro Stadium management company might represent one of the forefront companies, within the sports industry, this study results should be conveniently taken into consideration by sporting authorities and international bodies, emphasizing the relevance of sustainability (i.e. environmental and social practices within the sports industry) and digitalization so as to better prepare sports organizations and to provide the overall industry with the tools deemed necessary to navigate this important transition in a smoother way.

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Are diversified football clubs better prepared for a crisis? First empirical evidence from the stock market

Cited by 15 publications

References 102 publications

Business model innovation for sustainable operations in professional football: How supporters gain more control of the Beautiful Game

Business model innovation for sustainable operations in professional football: How supporters gain more control of the Beautiful Game

French men's professional basketball under the economic shock of the Covid-19

The quest for sustainable sports management: evidence from the football industry

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