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The Effect of a Sports Institution’s Legal Structure on Sponsorship Income: The Case of Amateur Equestrian Sports in Germany

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Listed:
  • Pamela Wicker

    () (Griffith University)

  • Christian Weingärtner

    () (University of Zurich)

  • Christoph Breuer

    () (German Sport University Cologne)

  • Helmut Dietl

    () (University of Zurich)

Abstract

Choosing the legal structure of a sports institution is one of the key decisions that sports managers must make. Using platform theory and property rights theory, this paper shows that the choice of legal structure influences the revenue composition of sports institutions. We hypothesized that member associations should receive higher sponsorship revenues than private firms because their legal structure offers better protection against hold-up for sponsors and also for customers/members, which in turn leads to increased attention for the sponsor. We tested this prediction using quantitative data from a nationwide online survey of equestrian sports institutions in Germany. In 2009, n=574 private firms and n=1,165 member associations completed the same questionnaire. Regression analyses were run to determine whether the legal structure has an impact on sponsorship income. The results confirmed the hypothesis that the legal structure has a significant impact on sponsorship income.

Suggested Citation

  • Pamela Wicker & Christian Weingärtner & Christoph Breuer & Helmut Dietl, 2012. "The Effect of a Sports Institution’s Legal Structure on Sponsorship Income: The Case of Amateur Equestrian Sports in Germany," International Journal of Sport Finance, Fitness Information Technology, vol. 7(4), pages 340-357, November.
  • Handle: RePEc:jsf:intjsf:v:7:y:2012:i:4:p:340-357
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    References listed on IDEAS

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    1. Dietl Helmut & Duschl Tobias & Franck Egon & Lang Markus, 2012. "A Contest Model of a Professional Sports League with Two-Sided Markets," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(3), pages 336-359, June.
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    3. Dietl, Helmut & Duschl, Tobias, 2012. "The organization of professional sports leagues: A comparison of European and North-American leagues from the perspective of platform organization," Edition HWWI: Chapters,in: Sport und Sportgroßveranstaltungen in Europa - zwischen Zentralstaat und Regionen, pages 111-126 Hamburg Institute of International Economics (HWWI).
    4. Helmut Dietl & Christian WeingŠrtner, 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).
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    Cited by:

    1. Kiefer, Stephanie, 2014. "Are riding club members willing to pay or work for an overall quality improvement?," Discussion Papers of the Institute for Organisational Economics 1/2014, University of Münster, Institute for Organisational Economics.
    2. Jürgen Rösch, 2014. "More Surf, Less Bias: The Influence of Advertising in Two-Sided Sport Markets," International Journal of Sport Finance, Fitness Information Technology, vol. 9(4), pages 331-345, November.

    More about this item

    Keywords

    sponsorship; property rights; platform theory; sport club; private firm;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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