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Organizational Mission and Revenue Diversification among Non-profit Sports Clubs

Author

Listed:
  • Pamela Wicker

    (Department of Sport Economics and Sport Management, German Sport University Cologne, Am Sportpark Muengersdorf 6, Cologne 50933, Germany)

  • Svenja Feiler

    (Department of Sport Economics and Sport Management, German Sport University Cologne, Am Sportpark Muengersdorf 6, Cologne 50933, Germany)

  • Christoph Breuer

    (Department of Sport Economics and Sport Management, German Sport University Cologne, Am Sportpark Muengersdorf 6, Cologne 50933, Germany)

Abstract

The beneficial effects of diversified income portfolios are well documented in previous research on non-profit organizations. This study examines how different types of organizational missions affect the level of revenue diversification of organizations in one industry, a question that was neglected in previous research. Based on contingency theory, it is assumed that different missions are associated with different funding sources. Since missions can be complementary or conflicting, specific attention needs to be paid to the combination of missions. The sport sector is chosen as an empirical setting because non-profit sports clubs can have various missions while their overall purpose is promoting sport. Panel data from a nationwide survey of non-profit sports clubs in Germany are used for the analysis. The regression results show that revenue diversification is significantly determined by organizational mission. Historically, typical mission statements like promoting elite sport, tradition, conviviality, non-sport programs, and youth sport have a positive effect on revenue diversification, while clubs with a commercial orientation and a focus on leisure and health sport have more concentrated revenues. The findings have implications for club management in the sense that some missions are associated with higher financial risk and that the combination of missions should be chosen carefully.

Suggested Citation

  • Pamela Wicker & Svenja Feiler & Christoph Breuer, 2013. "Organizational Mission and Revenue Diversification among Non-profit Sports Clubs," IJFS, MDPI, vol. 1(4), pages 1-18, November.
    • Handle: RePEc:gam:jijfss:v:1:y:2013:i:4:p:119-136:d:30294
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    References listed on IDEAS

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    5. Pamela Wicker & Christoph Breuer & Ben Hennigs, 2012. "Understanding the interactions among revenue categories using elasticity measures—Evidence from a longitudinal sample of non-profit sport clubs in Germany," Sport Management Review, Taylor & Francis Journals, vol. 15(3), pages 318-329, July.
    6. Cordery, Carolyn J. & Sim, Dalice & Baskerville, Rachel F., 2013. "Three models, one goal: Assessing financial vulnerability in New Zealand amateur sports clubs," Sport Management Review, Elsevier, vol. 16(2), pages 186-199.
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    Cited by:

    1. Szczepan Kosciolek, 2019. "Do sports clubs differ from other non-governmental organizations in terms of revenue sources? The case of Poland," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 18(3), pages 283-294, September.
    2. Svenja Feiler & Christoph Breuer, 2021. "Perceived Threats through COVID-19 and the Role of Organizational Capacity: Findings from Non-Profit Sports Clubs," Sustainability, MDPI, vol. 13(12), pages 1-24, June.

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