The Effect of Professional Football Clubs' Legal Structure on Sponsoring Revenue
AbstractProfessional football clubs earn most of their revenues from four sources: sale of broadcasting rights, matchday revenues, merchandising, and sponsorship. The relative importance of these sources differs among clubs and leagues. Economists often argue that the ability of professional football clubs to generate revenues depends to a large extent on their legal structure. In this paper we analyze the effect of different legal structures, such as private company, public company, membersÕ association, on sponsorship. Based on the platform theory we introduce a model of value creation in professional football. After elaborating the property rights situation for each of the legal structures we show the direct and indirect effects on the generation of sponsorship revenues. We theoretically proof the membersÕ association to be the favorable legal structure with regard to sponsorship. The lack of hold-up risks for the stakeholders and the strong position of the fans are the major reasons for the superiority of this non-profit legal structure.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Working Papers with number 0141.
Length: 22 pages
Date of creation: Jan 2011
Date of revision:
Organization; Sponsorship; Network Effects; Platform; Property Rights;
Other versions of this item:
- Helmut Dietl & Christian WeingÅ rtner, 2011. "The Effect of Professional Football Clubs' Legal Structure on Sponsoring Revenue," Working Papers 0041, University of Zurich, Center for Research in Sports Administration (CRSA).
- NEP-ALL-2011-01-23 (All new papers)
- NEP-NET-2011-01-23 (Network Economics)
- NEP-SPO-2011-01-23 (Sports & Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Christoph Breuer & Helmut Dietl & Christian WeingŠrtner & Pamela Wicker, 2011.
"The effect of a sports institutionÕs legal structure on sponsorship income: The case of amateur equestrian sports in Germany,"
0146, University of Zurich, Institute for Strategy and Business Economics (ISU).
- Christoph Breuer & Helmut Dietl & Christian WeingÅ rtner & Pamela Wicker, 2011. "The effect of a sports institutionÃ•s legal structure on sponsorship income: The case of amateur equestrian sports in Germany," Working Papers 0043, University of Zurich, Center for Research in Sports Administration (CRSA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (IBW IT).
If references are entirely missing, you can add them using this form.