Seminar 2 Essay example

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Stockholm University
Stockholm Business School
Business Ethics

Seminar 2
Contextualisation Case 6

Corporate governance of professional football clubs: for profit or for glory?

Shadan Abdullah(930514-6541)
Per Jonsson (780827-0479)
Victor Savigny (902710-P154)
Pui Shan Szeto (921026-P500)
Omkar Vedpathak (940126-P152)
The main stakeholders of football clubs, their 'stake' in the organization and legitimacy of their interests.

Some European football clubs have in, approximately in the last three decades, developed from being relatively small local organizations, into global giants in terms of multi-million businesses supported and followed by millions of stakeholders from all over the world. How does one relate
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With normative stakeholder theory one tries to explain (in these settings) why football clubs should take into account the interests of the stakeholders. It is easy to sympathize with the customer group in this matter. They are the foundation stone that has built the club through the years and they have invested money, emotions and their private time. But they are not as important as they once was for the club. This given that another stakeholder group (Suppliers e.g. broadcasting companies, sponsors etc.) now serves the business with monetary funding’s, hence the times have changed. Ultimately though, the suppliers will almost certainly vanish if the customers stop buying the product. Shareholders and employees can easier than the customers in this case find another business to join, they are not exclusive in the same way as the customers.
The descriptive stakeholder theory can also be useful to the settings in trying to state whether and how the football clubs do listen to the stakeholder’s interests. Also in this context the clubs can rely on their loyal customer base. Even though if you treat them bad (expensive tickets, changing the club badge and colors etc.) they will not ultimately stop buying the product. You might however as a owner/ shareholder have a customer rebellion on your hands. Shareholders can more easily sell their stocks if they feel neglected by the club, suppliers will search for other
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