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
The first stakeholder I am going to evaluate is customers which are external stakeholders. Customers contribute to profit levels and turnover through buying products and services. People are stakeholders in a company for financial reasons, customers do not want to have to spend an excessive amount of money to purchase a product, so if the product is cheaper in one store, such as Tesco, than in another store then customers will buy the cheaper one which then attracts more customers.
Traditionally, nutrition programs were targeted to the indigent and poor populations in developing countries. Many of today's Americans are malnourished also, but they are inundated with unhealthy foods and require a multidisciplinary approach to nutrition education. What would be the three most important points to include in a public nutrition program? Provide current literature to support your answer and include two nutritional education community resources.
In this task I will be describing eight different stakeholders which are; customers, employees, suppliers, owners, trade unions, employer associations, local and national communities and the government. I will be stating what they are, who they are, why they useful, how they influence stake holders on organisation and why they are useful to business I have chosen which is Tesco and The British Heart Foundation.
Professional football clubs need revenue. It is vital to the financial survival of a club as they have ultimately become a business. Money is a vital necessity to enable the club to function. From paying ground rent to the funding of the youth system and to even signing players for the clubs, it is fundamental that a club is making a profit. The owners of the clubs will want to see profits being made otherwise the club will eventually no longer be able to function.
Football has seen itself undergoing a paradigm shift in the past decades. As European football grew into the gigantic monolith it is today, an inflow of money found its way into the coffers of the Union des Associations Européennes de Football (UEFA). The Financial Fair Play (FFP) regulations were initiated in principle to create a level playing field between clubs owned by business tycoons and those who are a bit more moderate in comparison. It is a sad sight that today, European club football is in truth, nothing short of an oligopoly of about ten clubs. This distorts the competitive balance not only among them, but among leagues all over Europe. Even though the FFP has been roped in to prevent this there have been widely publicized doubts over its claims of causing a harmonised and tighter regulation for all European clubs. It might be ineffective owing to its incompleteness, plausible inefficacy and humungous costliness. Even though the regulations are welcome with regards to controlling debt, hopes that it will make football more ethical and competitive, are foolhardy. Only time will tell as to how the ‘beautiful game’ will respond to FFP and how ‘fair’ and effective it really is.
In this case study we were given the opportunity to evaluate Tottenham Hotspur’s plans for a new stadium and a new striker. The Chairman of Tottenham, Daniel Levy has focused on three pillars that he believes could sustain long-term success for Spurs. Levy states, “If you sign older players at huge salaries but don’t get the immediate football success you dreamed of, you cripple yourself” (p.2). The pillars are: the development of a new stadium, the building of a new training facility, and the continual improvement of the club through prudent player acquisitions during the various transfer windows. Adhering to these pillars would allow for continued success in both domestic and European football, as well as the development of the company’s assets. Ultimately, this would allow for the club to build their brand, which in turn will lead to greater revenues being streamed in.
There is a frequent change of leadership in the company making the club to be disunited. Nonetheless, this will affect the sale of merchandise. Lastly, the club is lacking enough finances for financing academies and junior football, so that they can train the best footballers to ensure smooth succession in the future.
Although, the case study of Manchester United gives us a good example of a brand’s ability to globalize, it does not give us a clear picture into how a league as a whole accomplishes these same goals. To get this clear picture of a successful global soccer league we can review a case study by Matthew Holt that examines the UEFA Champions League and its ability to succeed. The UEFA Champions League(UCL) was established after the UEFA European cup started to see more revenue increases based on the increase in television and digital technologies. (Holt, 2007) The goal of the UCL was to increase revenue through a newly structured European club soccer league. The first way that UCL accomplished this was through centralized marketing. This was accomplished through selling the television rights as the UCL brand rather than allowing the clubs to individually sell the rights to the games. This increased the value of the television rights and in turn increased the profitability of the clubs. (Holt, 2007) UEFA sold this UCL brand
According to Edward Freeman, stakeholders are anyone that has a stake or claim on the firm, including suppliers, customers, employees, stockholders, the local community, and management. Every corporation has stakeholders, and they are the individuals or groups of people who are benefited or harmed as a result of the operations of a company. Stakeholders are also crucial for the survival and success of a firm. In addition, a corporations competitors can also be viewed as a stakeholder, because they may have a potential claim on the firm. A corporations competitors are only considered stakeholders in the wide definition of a stakeholder in Freeman’s theory, while all the other stakeholders are included in the narrow definition (2014, pp. 263-267).
The UEFA Champions League is a European football tournament that is held every year across Europe. With over 300 million television viewers, the league’s final is the most watched annual sporting event worldwide. For an event of this magnitude, the stakes for everyone involved are very high (appendix 1). This essay includes a short description of the tournament along with an overview of the stakeholders, followed by an analysis of one of the sponsors, Heineken.
Below is our sample essay question, which is designed to be as close as possible to an essay question that might appear on the SAT. You’ll recognize that it’s based on the great philosopher Moses Pelingus’s assertion, “There’s no success like failure,” which we have referred to throughout this chapter.
Investors, Suppliers and community groups are seen, to be kept informed but have little if no power (segment B). Investors in particular want to know if their investment will produce a return, so at times they are not interested in using power or having much interest. Suppliers have little power as the team have a strong demand from others wanting to supply their needs. Just by them being linked to Manchester United makes them more
The English Premier League (EPL) is the fourth most lucrative sporting league in the world, behind America’s NFL, NBA and Major League Baseball. It is a corporation owned by the 20 participating football clubs and currently has revenues of £1.8billion a year and television rights deals worth over £2.7 billion. It is already one of the UK’s most successful and recognisable international brands. The EPL’s top four clubs, Manchester United, Chelsea, Liverpool and Arsenal are global brands in themselves, occupying four of the top eight of Deloitte’s football money league places and commanding combined revenues of £714.1 million last year. (Deloitte Sports Business Group,
The total size of European football market is up to €15.7 billion in 2008/2009. It is proven that football industry stay strong under the pessimistic economic environment. In Europe, England’s Barclays Premier League, Spain’s La Liga, Germany’s Bundesliga, Italy’s Serie A and France’s Ligue 1 are recognized as “The 5” by organizations and supporters worldwide.
On 23rd June 2016, there will be an important referendum for the UK and its economy to resolve whether the UK leaves the EU or not. The decision that will be made by the British citizens will effect on a lot of sectors in many ways. However, it is expected that especially sports industry which has been globally developing nowadays will be the most influenced on by that decision. The purpose of the report is to identify what are the advantages and disadvantages for sport-related organisations caused by the case of the UK leaving the EU. In this report, it will be focusing on Manchester City Football Club, and discussing what are the main merits and demerits for one of the most globally-oriented football clubs as a result of