Development of a Sustainable Strategic Framework for the Bsn – Puerto Rico’S Pro Basketball League
Total Page:16
File Type:pdf, Size:1020Kb
EDGAR X. VARGAS ACEVEDO DEVELOPMENT OF A SUSTAINABLE STRATEGIC FRAMEWORK FOR THE BSN – PUERTO RICO’S PRO BASKETBALL LEAGUE Final Master Thesis Study program: Sport Business Management State code 6211LX001 Supervisor: Assoc. prof., dr. Renata Legenzova Head of Graduate Studies of Faculty of Economics and Management Defended: Assoc. prof., dr. Rita Bendaravičienė Dean of the Faculty of Economics and Management Kaunas, 2021 Abstract Edgar X. Vargas Acevedo. DEVELOPMENT OF A SUSTAINABLE STRATEGIC FRAMEWORK FOR THE BSN – PUERTO RICO’S PRO BASKETBALL LEAGUE: Final Master Thesis in Sport Business Management/ Assoc. prof., dr. Renata Legenzova / Vytautas Magnus University, Faculty of Economics and Management, Graduate studies. – Kaunas, 2021. – number of pages p. 84 SUMMARY Throughout the years, the professional basketball league of Puerto Rico – Baloncesto Superior Nacional (BSN) – has been recognized as one of the top competitions of the Americas continent. Its beginnings date back to as early as 1930 - making the league one of the oldest in the world with 90 continuous years of serving basketball to the Puerto Rican community. BSN’s preparation, production and post-tournament activities generate a significant impact in Puerto Rico’s economy, the island’s natural ecosystem and on local communities of the participating franchises. As with any mega- sporting event, the BSN also presents risks related to the increased use of limited natural resources, as well as to the health, safety, and well-being of all its stakeholders. Using a mixed-method research design (804 online surveys and 30 one-to-one meetings), this final master thesis seeks to develop a sustainable strategic framework for the BSN organized according to three pillars: governance, people, and environment. Keywords: Basketball in Puerto Rico, Sustainability, Sustainable Development, Sustainability Development Goals, Sports, and Sports Business 2 TABLE OF CONTENT ABSTRACT.........................................................................................................................................2 INTRODUCTION................................................................................................................................5 I. LITERATURE REVIEW ON SUSTAINABILITY AND SUSTAINABLE DEVELOPMENT IN SPORTS ……………………………………………………………………………………………..8 1.1 The Concept of Sustainability........................................................................................................8 1.2 Sustainable Development ............................................................................................................10 1.2.1 The Five P’s of Sustainable Development …………………………………………………..11 1.3 United Nation’s 2030 Agenda for Sustainable Development .....................................................14 1.3.1 Sustainable Development Goals (SGDs) …………………………………………………….14 1.3.2 SDGs Challenges …………………………………………………………………………….17 1.4 Sports as Drivers for Sustainable Development …………………………………………….….17 1.5 Advantages of Sustainable Sporting Organizations…………………………………………….19 II. FIELD OF ANALYSIS: ASSESMENT OF SDGs IMPLEMENTATION IN THE BSN ..........21 2.1 An Overview of the Baloncesto Superior Nacional (BSN).........................................................21 2.2 Analysis of BSN’s Business Model.............................................................................................24 2.2.1 Value Proposition……………………………………………………………………………..24 2.2.2 Customer Segment…………………………………………………………………………….25 2.2.3 Channels……………………………………………………………………………...……….27 2.2.4 Customer Relationships……………………………………………………………………….32 2.2.5 Resources ……………………………………….…………………………………………….32 2.2.6 Activities ……………….……………………………………………………………………..34 2.2.7 Partners ……………………………………………………………………………………….35 2.2.8 Revenue Structure …………………………...……………………………………………….36 2.2.9 Cost Structure ………………………………………………………………………….……..37 2.3 Sustainable Strategic Framework Development Process …………………...……………........38 III. BSN’s SUSTAINABLE STRATEGIC FRAMEWORK AND OBJECTIVES...........................41 3.1 Governance Pillar………………………………………………..……………………………...43 3.1.1 Strategic Planning ………..…………………………………….…………………………….43 3.1.2 Transparency, Accountability, and Compliance …………………………………..…………44 3.1.3 Economic Performance …………….……………………………………………………...…45 3.1.4 Sporting Integrity …….…………………………………………………………………..…..48 3.1.5 Safety and Security …………………………………………………………………………..48 3.1.6 Infrastructure …………………………………………………………………………………49 3 3.2 People Pillar………………………………………………………... ..........................................50 3.2.1 Workforce Development ……………………………………………………………………..50 3.2.2 Community Cohesion ………………………………………………………….……………..51 3.2.3 Cultural Understanding …………………………………………………………………...….52 3.2.4 Diversity and Anti-Discrimination…………………………………………………………....53 3.2.5 Accessibility ……………………………….………………………………………...……….54 3.2.6 Workers’ Living Conditions ………………………………………………………………….54 3.3 Environment Pillar........................................................................................................................55 3.3.1 Energy Emissions and Mobility………………………………………………………………56 3.3.2 Waste…………...……………………………………………………………………………..56 3.3.3 Water……….…………………………………………………………………………………57 CONCLUSIONS................................................................................................................................58 REFERENCES...................................................................................................................................60 ANNEXES ........................................................................................................................................64 4 INTRODUCTION Relevance and topicality. Over the years, the term sustainability has taken roots within the sports industry. As stated in the Brundtland Commission of the United Nations in 1987, sustainability was defined as meeting the needs of the present without compromising the ability of future generations to meet their own needs. This concept is usually analyzed through three core elements: environmental protection, economic growth, and social inclusion. In 1997, British entrepreneur John Elkington popularized the concept applied in business on his book Cannibals with Forks: The Triple Bottom Line of 21st Century Business. In here, he defined a business as ‘sustainable’ when it lives up to what he calls the “Triple Bottom Line”. In this framework, Elkington assesses business performance based on the three main pillars – what he calls the 3 P’s of sustainability: planet (environmental protection), profit (economic growth), and people (social inclusion). In this context, sustainability was defined as the place where the three P’s overlap. Throughout the years, the professional basketball league of Puerto Rico – Baloncesto Superior Nacional (BSN) – has been recognized as one of the top competitions of the Americas continent. Its beginnings date back to as early as 1930 - making the league one of the oldest in the world with 90 continuous years of serving basketball to the Puerto Rican community. BSN’s annual preparation, production and post-tournament activities generate a significant impact in Puerto Rico’s economy (around twelfth million dollars in gross income per year), the island’s natural environment, and on local communities of the participating franchises. Despite basketball’s popularity among the island of Puerto Rico, where it is considered the island’s primary sport, its professionalization as a business has left much to be desired. Although the league had an explosion in its commercialization during the 2000s, it has been suffering from an economic crisis during the past decade. Every year there are fewer franchises competing in the league, lower budgets for each team, higher owners’ contributions, lack of different revenue streams, less government contribution for each team, and more debts in the operation of the remaining franchises. Although BSN’s outreach has significantly been reduced in recent years, the league is still considered Puerto Rico’s preferred league among fans. Reality is that the direction the league is heading is negatively alarming. For this reason, it is necessary to develop a sustainable strategic framework that guarantees the progress of the BSN in the long term and ensures the well-being of all its stakeholders for the subsequent years. The research problem addressed in this paper is – what is the economic performance, social inclusion, and environmental impact of performing each year the BSN, and what sustainable strategic framework can be implemented to enhance this impact for the league in the long-term. The research object is sustainable development strategy of the BSN. 5 The research aim of this final master thesis seeks discuss key concepts as sustainability, sustainable development, and sustainable development applied in sporting organizations in order to develop a sustainable strategic framework for the BSN organized according to three pillars: governance, people, and environment. To do so, this document explores three key areas: • Sustainability and sustainable development in sports (literature review): In this part, reference information was obtained from the Vytautas Magnus University and the University of Puerto Rico-Mayagüez’ databases, and the official website of the United Nations. o Define terms such as sustainability and sustainable development. o Address United Nations’ 2030 Agenda for Sustainable Development. o Understand sports’ importance as sustainable development