Business of sport (Clubs/Franchise) management

Abstract

Sports Management: The entire gamut of sports has undergone a sea change with sports stars now earning more than 400 times the average working salary. The sports industry covers not just the players but now involves organizers, media, managers, government, federations, fans, etc. Sports is now a huge multi-billion dollar industry and offers a variety of opportunities for keen followers. Uniqueness of Sports as an industry: Sports is different from normal forms of business due to some unique characteristics like Anti-competitive behaviour and high loyalty of supporters. Performance evaluation is also very different than a normal business. Changing trends in sports: Sports is not an amateur pastime anymore and is very professionally run around the world. It is characterized by intense competition and running a professional team has become very challenging for managers and owners alike. Major sources of revenue: The sports industry relies on four major components for its revenue generation- gate revenue, sponsorship, media broadcast rights and merchanding. According to a PwC report, global revenue from sports will increase from $ 114 billion in 2009 to $ 133 billion in 2013. Attractive of football as an industry in Europe: The European leagues (German, English) are highly profitable but buying a football club involves a lot of initial investment. Football industry has medium attractiveness as per our assessment based on Porter?s Five Forces. UK’s competitive advantage: The advantage that UK has over other regions in football has been analysed through Porter's nation's competitive advantage (National Diamond Framework). Favourable factors like weather conditions, a great long history and heritage, and a massive brand name add to UK?s advantage as a prime region for the sustainability of the football industry. Case Studies: We have tried to analyse what went right for certain firms that forayed into the sports industry by buying certain teams. We have used SWOT analysis and VRIN approach to see how these teams are doing and how they have added value to the companies that bought them. * Case 1: Chelsea under Roman Abramovich. * Case 2: UB group?s acquisition of RCB. * Case 3: NESV?s investment in Liverpool FC. * Case 4: Venky?s acquisition of Blackburn Rovers FC. Appendix: Figures and various frameworks applied to the various aspects of the study. It also has introductions to the various teams and companies that have been analysed.