IDEAS home Printed from https://ideas.repec.org/p/rsd/wpaper/0041.html
   My bibliography  Save this paper

The Effect of Professional Football Clubs' Legal Structure on Sponsoring Revenue

Author

Listed:
  • Helmut Dietl

    () (Institute for Strategy and Business Economics, University of Zurich)

  • Christian WeingŠrtner

    () (Institute for Strategy and Business Economics, University of Zurich)

Abstract

Professional 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.

Suggested Citation

  • 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).
  • Handle: RePEc:rsd:wpaper:0041
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rsd:wpaper:0041. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (IBW IT Support). General contact details of provider: http://edirc.repec.org/data/isuzhch.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.