Why Football Clubs And Sports Clubs In General

Despite recording large budget deficits in general, participate in the championship every year, and points out as the underlying reason the fact that the managers of the clubs are not only interested, nor even primarily , to generate profits. They are much more attracted to the notoriety deriving from the In this sense, the ‘well-being’ of the sports club largely depends on four factors: 1) success or placement in the league (number of games won); 2) turnout of the public at the stadium; 3) state of health of the league to which the company is affiliated; 4) amount of revenues. Assuming that after-tax revenues cover operating expenses, the greater the weight of the other factors, the better the position of the company.

The achievement of a profit therefore becomes not the ultimate goal, but only the means by which a (sports) football club can acquire notoriety; indeed, it can be said that the main objective is to maximize sporting success, maintaining a balanced budget position (net of taxes) in the long run. What matters, in the first place, is to win the championship or one of the international cups and the profits are only the means to build a team capable of achieving similar goals.

Company executives are often fanatical supporters

But that obviously cannot explain why they accept non-remuneration and more often loss of invested capital. The reality is that they derive other advantages from the pre-eminence within football clubs: prestige, notoriety, the possibility of new business for their extra football activities.

To conclude the topic, some quick considerations can be made on the 해외축구중계사이트 economic policy proposals that emerge from the aforementioned literature. If we think that the uncertainty of the result is the keystone of all professional sport and that the aim is to maximize profit or utility, however qualified and subject to a budget constraint, it is clear that the task of league is to have teams of comparable strength, so as to maximize the profits or well-being of individual teams and the league itself. When one or more teams become too above average, diseconomies occur outside those teams and within the league, as uncertainty about match outcome and championship winner decreases and crowds drop.

If we do not share the idea that the uncertainty of the result is the engine of the sports industry (Grattan-Taylor 2000) but rather other social and cultural characteristics, such as those highlighted by Wiseman, that push the public to attend the sports show , the cross-subsidy proposal loses some of its persuasive force.

On the other hand, a policy centered on the objective of cross-subsidization overlooks the fact that in European sport there are international competitions that are now as relevant as national championships and that from a financial point of view they are increasingly important for the teams that take part in them. A redistribution policy would weaken them financially, as for example they couldn’t buy the best talent on the market. Failures in European cups lead to a drop in viewers and lost revenue from television rights; therefore, a correction of an internal lack of economy in the league can only be made by taking into account all the games and competitions in which the affiliated teams are involved.

You might also like