Major sporting successes with financial management

Published: 31 August 2017

Elite clubs reach higher audience average and better sporting goals if they have a professional financial management of their business. This is the result of a student project at Luleå University of Technology where over one hundred Swedish club are examined.

– Income from audiences, TV and sponsors are the reason why elite sports clubs in Sweden can invest their resources in reaching other goals. Our study shows that these incomes are essential for the clubs in order to achieve, for example, a sporting goal as high table placement or winning strategic cups, says Mattias Sundman, student at the Master Program in Business and Economics, at Luleå University of Technology. 

Evaluate to reach longer

Simon Trajkovski, together with Mattias Sundman, conducted a survey of Sweden's 109 most attractive clubs when it comes to attracting audience. There are clubs from soccer and ice hockey, but in the control group also sports such as bandy, floor ball, speedway, basketball and handball. Historically, many sports clubs have had financial difficulties which makes it relevant to watch if more professional management increases the likelihood of achieving sporting goals, says Simon Trajkovski.

– The clubs that have a higher audience average are evaluating their business and are giving feedback on, for example, the ticket sales. They are also evaluating the past season to see if previous work has given the desired effect, ie higher audience coverage, he says.

Sport with social responsibility

Previous research has shown that the elite sports clubs have a major impact on society, both in terms of creating social cohesion or providing tax revenues, but also the more negative effects of violence on sporting events.

– Sports in general and especially soccer are becoming more and more like a company. Given the impact of sport on society, it is important that each individual club analyses its business to see how they can improve their financial governance and financial goals, says Mattias Sundman.

The study has already attracted interest among the sports clubs involved and the respondents have taken part of the results. But all clubs have different conditions, Simon Trajkovski points out.

– Those with a great audience will of course get more income that they can invest in reaching other goals. Each club must therefore analyse its work to see what action they can take in their financial management, he says.

Contact

Ossi Pesämaa

Pesämaa, Ossi - Associate Professor

Organisation: Accounting and Control, Business Administration and Industrial Engineering, Department of Business Administration, Technology and Social Sciences
Phone: +46 (0)920 493498
Room: A276 - Luleå»