Stockholm Business School
Contextualisation Case 6
Corporate governance of professional football clubs: for profit or for glory?
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 …show more content…
Here you try to answer the question if listening to the stakeholders interests will have a positive effect on, in this setting, the football club. When looking at the network model you realize that there are many opinions to take into account. If you combine this theory with the network model you will surely understand that bigger football clubs has understood the importance of working proactively to improve its image of the club, for example via the concept of corporate social responsiveness (CSR). To what extent this is altruistic behavior rather than cold business calculations differs from one context to the next, but it definitely helps the shareholders/employees in their claim for legitimacy.
Key governance issues
During this case, we found several issues professional football clubs stakeholder’s face in their daily life.
Executives are always in close relation with Medias as regards to the TV rights. For instance, kick off time represent an important issue. Indeed, it deals about TV contract, audience rating, planning (as regards to the succession of games between preseason games, Tournament, Championship, Cup and friendly games that involve all the marketing, communication and sale department of clubs) that can be adapt following agreements.
E.g « frequent change in kick-off times due to programming demands from TV stations » Football clubs may adapt to the media and not to the fans. Fans can have the feeling of being neglected.
From several years, clubs