Strategic performance management for soccer clubs: A quantitative model proposal
Keywords:Strategic management of soccer, Club performance, Balanced scorecard
Soccer has been a very popular sports industry all over the world. Since soccer clubs generate a huge income from a variety of sources, the stakeholders of the soccer industry have come to recognize that this business should be managed professionally, and this would entail all of the functions of management, including performance management. This study provides a comprehensive framework for the strategic performance management of soccer clubs. In order to be strategy-focused, to better serve their mission, and to improve their performance, the performance management systems of soccer clubs should be linked to their missions and visions. Therefore, this study elucidates the application of a strategic performance management tool, the balanced scorecard (BSC), to the different levels of soccer clubs such as giant, middle-level, and lower-level. The study also provides a quantitative BSC model as a case study.
Adams, A., Morrow, S., & Thomson, I. (2017). Changing boundaries and evolving organizational forms in football: Novelty and variety among Scottish clubs. Journal of Sport Management, 31(2), 161-175. https://doi.org/10.1123/jsm.2016-0286
Ahmed, E. E. D. M., & El Asbah, M. E. I. (2018). Applying the Balanced Performance Model in a confrontation the risks of investing in Egyptian sports clubs. Life Science Journal, 15(2) 26-44.
Al-Alawi, A. I. (2017). Using balanced scorecard in measuring the performance of online banking: cultivating strategic model map in financial sector-case of Bahrain. Journal of Internet Banking and Commerce, 23(2), 1-26.
Andreff, W. & Staudohar, P. D. (2000). The evolving European model of professional sports finance. Journal of Sports Economics, 1(3), 257-276. https://doi.org/10.1177/152700250000100304
Aoki, M. (2000). Information, corporate governance, and institutional diversity: Competitiveness in Japan, the USA, and the transnational economies. Oxford, UK: Oxford University Press.
Barros, C.P. & Leach S. (2006) Analysing the performance of the English F.A. Premier League with an econometric frontier model. Journal of Sport Economics, 7(4), 391-407. https://doi.org/10.1177/1527002505276715
Barros, C. P., Wanke, P., & Figueiredo, O. (2015). The Brazilian soccer championship: an efficiency analysis. Applied Economics, 47(9), 906-915. https://doi.org/10.1080/00036846.2014.982857
BBC (2009) UEFA approves new spending plans, BBC News (September 15, 2009) retrieved from: http://news.bbc.co.uk/sport2/hi/football/europe/8256279.stm
Breitbarth, T. & Harris, P. (2008). The role of corporate social responsibility in the football business: Towards the development of a conceptual model. European Sports Management Quarterly, 8(2), 179-206. https://doi.org/10.1080/16184740802024484
Breitbarth, T., Hovemann, G., & Walzel, S. (2011). Scoring strategy goals: Measuring corporate social responsibility in professional European football. Thunderbird International Business Review, 53(6), 721-737. https://doi.org/10.1002/tie.20448
Buraimo, B. & Simmons, R. (2009). A tale of two audiences: Spectators, television viewers and outcome uncertainty in Spanish football. Journal of Economics and Business, 61(4), 326-338. https://doi.org/10.1016/j.jeconbus.2008.10.002
Carlsson-Wall, M., Kraus, K., & Messner, M. (2016). Performance measurement systems and the enactment of different institutional logics: insights from a football organization. Management Accounting Research, 32, 45-61. https://doi.org/10.1016/j.mar.2016.01.006
Cavalluzzo, K.S. & Ittner, C.D. (2004). Implementing performance measurement innovations: Evidence from government. Accounting, Organizations and Society, 29(3-4), 243-267. https://doi.org/10.1016/s0361-3682(03)00013-8
Chadwick, S. (2009). From outside lane to inside track: sport management research in the twenty first century. Management Decision, 47(1), 191-203. https://doi.org/10.1108/00251740910929786
Cornwell, T.B., Pruitt, S.W. & Van Ness, R. (2001). The value of winning in motorsports: sponsorship-linked marketing. Journal of Advertising Research, 41(1), 17-31. https://doi.org/10.2501/jar-41-1-17-31
Coskun, A. & Tetik, S. (2013, May). Strategy Focused Sports Clubs: An Implementation of the Balanced Scorecard for Soccer Teams. Paper presented at International Conference on Economic and Social Studies, Sarajevo, Bosnia and Herzegovina.
Delaney, Daniel D. (2008). "Accounting for Athletics: A Balanced Scorecard Approach". Honors Scholar Theses. 43. https://opencommons.uconn.edu/srhonors_theses/43
Deloitte. (2019). World in motion: Annual review of football finance. Manchester: Deloitte Sports Business Group. Retrieved from https://www2.deloitte.com/uk/en/pages/sports-business-group/articles/annual-review-of-football-finance.html
Denis, D.K. & McConnell, J. (2003) ‘International corporate governance’, Journal of Financial and Quantitative Analysis, 38(1), 1–36.
Dimitropoulos, P. (2010). The Financial Performance of the Greek Football Clubs. Choregia, 6(1), 5-27.
Dimitropoulos, P. E. & Tsagkanos, A. (2012). Financial Performance and Corporate Governance in the European Football Industry. International Journal of Sport Finance, 7(4), 280-308.
Drut, B. & Raballand, G. (2012). Why does financial regulation matter for European professional football clubs? International Journal of Sport Management and Marketing, 11 (1-2), 73-88. https://doi.org/10.1504/ijsmm.2012.045488
Ehbauer, M. & Gresel, R. (2013). Measuring and managing service performance of luxury stores: development of a balanced scorecard. The Service Industries Journal, 33(3-4), 337-351. https://doi.org/10.1080/02642069.2013.747517
Franck, E. (2010). Private firm, public corporation or member’s association governance structures in European football. International Journal of Sport Finance, 5(2), 108–127.
Georgievski, B., Labadze, L., & Aboelsoud, M. E. (2019). Comparative advantage as a success factor in football clubs: Evidence from the English Premier League (EPL). Journal of Human Sport and Exercise, 14(2), 292-314. https://doi.org/10.14198/jhse.2019.142.04
Guzman, I. & Morrow, S. (2007). Measuring efficiency and productivity in professional football teams: evidence from the English Premier League. Central European Journal of Operations Research, 15(4), 309-328. https://doi.org/10.1007/s10100-007-0034-y
Haas, D.J., Kocher M.G. & Sutter, M. (2004) Measuring Efficiency of German Football Teams by Data Envelopment Analysis Central European, Journal of Operations Research, 12 (3), 251-268.
Hughson, J., Moore, K., Spaaij, R. F. J., & Maguire, J. A. (Eds.). (2017). Routledge handbook of football studies. Routledge, Taylor & Francis Group. https://doi.org/10.4324/9780203066430
Kaplan, R. S. & Norton, D. P. (1992). The Balanced Scorecard - Measures that Drive Performance, Harvard Business Review, LXX (1). 71-79.
Kaplan, R. S. & Norton, D. P. (1996a). The Balanced Scorecard: Translating Strategy into Action. Harvard Business School Press, Boston, USA.
Kaplan, R. S. & Norton, D. P. (1996b) Using the Balanced Scorecard as a Strategic Management System, Harvard Business Review, LXXIV (1). 75-85.
Kern, M. & Süssmuth, B. (2005). Managerial efficiency in German top league soccer: an econometric analysis of club performances on and off the pitch. German Economic Review, 6(4), 485-506. https://doi.org/10.1111/j.1468-0475.2005.00143.x
Késenne, S. (2014). The economic theory of professional team sports: An analytical treatment (2/e). Cheltenham: Edward Elgar Publishing. https://doi.org/10.1177/1527002508317141
Kloot, L. & Martin, J. (2000). Strategic performance management: A balanced approach to performance management issues in local government. Management Accounting Research, 11(2), 1-22. https://doi.org/10.1006/mare.2000.0130
Kozma, M. & Kazai Onodi, A. (2015). Applying the Public Sector ScoreCard in Professional Sports. (pp. 303-316) In: Karlovitz, J. T. (ed.): Some Current Issues in Economics. Komárno: International Research Institute.
Kozma, M. & Kazai Ónodi, A. (2017). Challenges in Measuring International Strategic Performance in Professional Team Sports-Two Case Studies from Hungary. Theory Methodology Practice: Club of Economics in Miskolc, 13(1), 85-96. https://doi.org/10.18096/tmp.2017.01.07
Kriemadis, T. & Theakou, E. (2007). Strategic Planning Models in Public and Non-Profit Sport Organizations. Choregia, 3(2), 27-37.
Leach, S. & Szymanski, S. (2015). Making money out of football. Scottish Journal of Political Economy, 62(1), 25-50. https://doi.org/10.1111/sjpe.12065
Lee, S., Brownlee, E., Kim, Y., & Lee, S. (2017). Ticket sales outsourcing performance measures using balanced scorecard and analytic hierarchy process combined model, Sport Marketing Quarterly, 26 (2), 110-120.
Manuel Luiz, J. & Fadal, R. (2011). An economic analysis of sports performance in Africa. International Journal of Social Economics, 38(10), 869-883. https://doi.org/10.1108/03068291111170415
McLaren, H.R. (2008), Corruption: Its Impact on Fair Play. Marquette Sports Law Review, 19(1), 15-38.
Michie, J. & Oughton, C. (2005). The corporate governance of professional football clubs in England. Corporate Governance: An International Review, 13(4), 517-531. https://doi.org/10.1111/j.1467-8683.2005.00446.x
Morrow, S. (2013). Football club financial reporting: time for a new model?. Sport, Business and Management: An International Journal, 3(4), 297-311. https://doi.org/10.1108/sbm-06-2013-0014
Osokin, N. A. (2018). Win vs. Profit maximization: optimal strategy for managing organizational performance of Russian football clubs. Strategic decisions and risk management, (2), 86-91. https://doi.org/10.17747/2078-8886-2018-2-86-91
Ozawa, T., Cross, J., & Henderson, S. (2004). Market orientation and financial performance of English professional football clubs. Journal of Targeting, Measurement and Analysis for Marketing, 13(1), 78-90. https://doi.org/10.1057/palgrave.jt.5740134
Özaydin, S. & Donduran, M. (2019). An Empirical Study of Revenue Generation and Competitive Balance Relationship in European Football. Eurasian Journal of Business and Economics, 12(24), 17-44. https://doi.org/10.17015/ejbe.2019.024.02
Ozturk, E. & Coskun, A. (2014). A strategic approach to performance management in banks: The balanced scorecard. Accounting and Finance Research, 3(3), 151-158. https://doi.org/10.5430/afr.v3n3p151
Parganas, P., Liasko, R., & Anagnostopoulos, C. (2017). Scoring goals in multiple fields. Sport, Business and Management: An International Journal 7(2). 197-215. https://doi.org/10.1108/sbm-11-2016-0072
Plumley, D., Wilson, R., & Ramchandani, G. (2017). Towards a model for measuring holistic performance of professional football clubs. Soccer & Society, 18(1), 16-29. https://doi.org/10.1080/14660970.2014.980737
Rohde, M. & Breuer, C. (2017). The market for football club investors: a review of theory and empirical evidence from professional European football. European Sport Management Quarterly, 17(3), 265-289. https://doi.org/10.1080/16184742.2017.1279203
Rossi, M., Thrassou, A., & Vrontis, D. (2013). Football performance and strategic choices in Italy and beyond. International Journal of Organizational Analysis, 21(4). 546-564. https://doi.org/10.1108/ijoa-04-2013-0659
Transparency International (2016). Global Corruption Report: Sport. London: Routledge, https://doi.org/10.4324/9781315695709
UEFA (2010). Financial Fair Play Explained. UEFA, retrieved from: https://es.uefa.com/insideuefa/protecting-the-game/club-licensing-and-financial-fair-play/news/newsid=1494481.html
Walzel, S., Robertson, J., & Anagnostopoulos, C. (2018). Corporate social responsibility in professional team sports organizations: An integrative review. Journal of Sport Management, 32(6), 511-530. https://doi.org/10.1123/jsm.2017-0227
Yuksel, H. & Coskun, A. (2013). Strategy focused schools: an implementation of the balanced scorecard in provision of educational services. Procedia-Social and Behavioral Sciences, 106, 2450-2459. https://doi.org/10.1016/j.sbspro.2013.12.282
Zambom-Ferraresi, F., Lera-López, F., & Iráizoz, B. (2017). And if the ball does not cross the line? A comprehensive analysis of football clubs’ performance. Applied Economics Letters, 24(17), 1259-1262. https://doi.org/10.1080/13504851.2016.1270408
How to Cite
Copyright (c) 2018 Journal of Human Sport and Exercise
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Each author warrants that his or her submission to the Work is original and that he or she has full power to enter into this agreement. Neither this Work nor a similar work has been published elsewhere in any language nor shall be submitted for publication elsewhere while under consideration by JHSE. Each author also accepts that the JHSE will not be held legally responsible for any claims of compensation.
Authors wishing to include figures or text passages that have already been published elsewhere are required to obtain permission from the copyright holder(s) and to include evidence that such permission has been granted when submitting their papers. Any material received without such evidence will be assumed to originate from the authors.
Please include at the end of the acknowledgements a declaration that the experiments comply with the current laws of the country in which they were performed. The editors reserve the right to reject manuscripts that do not comply with the abovementioned requirements. The author(s) will be held responsible for false statements or failure to fulfill the above-mentioned requirements.
This title is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International license (CC BY-NC-ND 4.0).
You are free to share, copy and redistribute the material in any medium or format. The licensor cannot revoke these freedoms as long as you follow the license terms under the following terms:
Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
NonCommercial — You may not use the material for commercial purposes.
NoDerivatives — If you remix, transform, or build upon the material, you may not distribute the modified material.
No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation.
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
Transfer of Copyright
In consideration of JHSE’s publication of the Work, the authors hereby transfer, assign, and otherwise convey all copyright ownership worldwide, in all languages, and in all forms of media now or hereafter known, including electronic media such as CD-ROM, Internet, and Intranet, to JHSE. If JHSE should decide for any reason not to publish an author’s submission to the Work, JHSE shall give prompt notice of its decision to the corresponding author, this agreement shall terminate, and neither the author nor JHSE shall be under any further liability or obligation.
Each author certifies that he or she has no commercial associations (e.g., consultancies, stock ownership, equity interest, patent/licensing arrangements, etc.) that might pose a conflict of interest in connection with the submitted article, except as disclosed on a separate attachment. All funding sources supporting the Work and all institutional or corporate affiliations of the authors are acknowledged in a footnote in the Work.
Each author certifies that his or her institution has approved the protocol for any investigation involving humans or animals and that all experimentation was conducted in conformity with ethical and humane principles of research.
Biomedical journals typically require authors and reviewers to declare if they have any competing interests with regard to their research.
JHSE require authors to agree to Copyright Notice as part of the submission process.