Journal of Human Sport and Exercise

Strategic performance management for soccer clubs: A quantitative model proposal

Ali Coskun, Muhammet Sait Dinc, Selman Tetik

Abstract

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.


Keywords

Strategic management of soccer; Club performance; Balanced scorecard

References

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




DOI: https://doi.org/10.14198/jhse.2021.164.08





Copyright (c) 2018 Journal of Human Sport and Exercise

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.