Managing Clubs Flashcards
What are the financial drivers of professional sport clubs?
- The scale and strength of the league the club belongs
- The clubs current performance level and the size of its supporter base
- The history and tradition of the club
- The stadium
- The City or region
- The attributes of the owner and the culture of the club
The influence of the scale and strength of the league as a financial driver for a sports club?
Some have access to a much larger global and domestic consumer base and therefore commercial revenues
Seasons and schedules
Key feature – the consistent and regular television programming content – 30 week competitions etc.
–> Constant organisation of competitions
Regular social activity – impact on society
The quadrennial cycle of mega-sport events
The influence of the current performance level and size of its supporter base as a financial driver for a sports club?
On-field success
Coaching and player quality, marquee players, football department etc.
Off-field factors include Membership base Sponsorship list Club culture Commercial revenue
The influence of the history and tradition as a financial driver for a sports club?
The development of its brand status / reputation
Clubs with a rich history have the capacity to develop very strong brands
Collingwood and South Sydney compared with newer organisations i.e. GWS
Strong and rich traditions are created by?
The example of the St George Dragons
Iconic players/coaches i.e. Reg Gasiner, Norm Proven and Harry Bath
Iconic venues i.e. SCG
Winning 11 titles in a row
Creates wide spread fan support
The influence of the the stadium as a financial driver for a sports club?
The stadium
Capacity
Quality of facilities
Location and accessibility
Example - MCG
i.e. Olympic history, CBD location, transport links, membership base, host of big events – AFL GF, Boxing Day Test Match and M2006 Commonwealth Games
Government funding i.e. state and federal
Stakeholder funding i.e. AFL
The influence of the city or region as a financial driver for a sports club?
Sport as a cultural practice may be more ingrained in some places / regions
One team towns can have advantages over clubs that are part of a city or region with many teams
Brisbane Broncos
TV and media coverage
Sponsorship capacity
The influence of the attributes of the owner and the culture as a financial driver for a sports club?
Some owner will do whatever it takes to win a championship
While others will maintain cost discipline to ensure a long-term future for the entity (i.e. Oakland A’s)
Different types of ownership motivation?
Profit maximisers
Strong history in North American sport / teams owned by individuals or businesses
Utility maximisers
Strong history in European football (Leeds United) / winning becomes the main aim
Mixed orientation
Winning is important but so is generating some profit or at breaking even / sustainable future
Pro team sports have an intense business dynamic
It is a “virtuous circle of success”
Sporting success –> Player trading-up –. Increased revenue (and around)
The “vicious circle of decline” is
Sporting failure –> reduced revenues –> operating losses –> excess debt burden –> player trading-down –.> sporting failure in a circle
