31.1.06

 

Sports in the world of business

The increasing "businessification" of sports has brought challenges to clubs who had their decisions taken by their associate base. These decisions were linked closely to the "love for the shirt", and many times they were contrary to solid business savvy.

In football, as in many other sports where clubs were financed by eager associates and benevolent mecenas, the revolution came when clubs had to create "Sports Business Companies", which would respond before creditors and tax authorities. Many of them started to be publicly traded, and the decisions are being done much more by investors than by the fans-including the selling of the whole club to a single owner.
In plus, if the club goes bankrupt, it is dispromoted to a lower league, and obliged to find financing, or simply shut their doors.

This situation made the clubs look for other sources than only membership fees and sponsorships, and trying to enter another competitive field, that of marketing.
Many are eager to embrace its power, improving and increasing the value of their brands, but find challenges in a field far from their core competences.
This blog was created precisely as a repository of ideas, to help sports companies to improve their strategy and marketing efforts, thus making both fans and investors happy.

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