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A Study of How to Increase Revenues Among League of Ireland Football Clubs Through Marketing Activities

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A Study of How to Increase Revenues Among League of Ireland Football Clubs Through Marketing Activities A Study of how to Increase Revenues among League of Ireland Football Clubs through Marketing Activities Dissertation submitted in part fulfilment of the requirements for the degree of Master of Science in Marketing (Digital Media) at Dublin Business School 2015 Johnathan Manley (10167802) I Declaration I, Johnathan Manley, declare that this research is my original work and that it has never been presented to any institution or university for the award of Degree or Diploma. In addition, I have referenced correctly all literature and sources used in this work and this work is fully compliant with the Dublin Business School’s academic honesty policy. Signed: Date: 21/08/2015 II Acknowledgements I would like to thank everyone who was involved in helping me complete this research. This thesis has given me a great opportunity to conduct research on the League of Ireland which has been very exciting as I am huge fan. Firstly I would like to thank all the respondents as without them this research would not have been able to be concluded. The help from Mark Lynch of Shamrock Rovers, Daniel Lambert of Bohemians, Anthony Delaney of St.Patrick’s Athletic, Richard Sadlier and Martin Russell has been excellent. I appreciate their time and their valuable insights that they shared with me immensely. I would also like to thank my supervisor Shaun Hayden who directed me throughout this process and offered me valuable guidance and feedback throughout this journey. Lastly, I would like to thank my friends and family who have supported me from start to finish. Johnathan Manley III Abstract The aim of this thesis is to find out how League of Ireland football clubs can increase their revenues through marketing activities. The paper contains a literature review which includes concepts such as the football brand, brand equity within sport, stakeholders within football and the revenue model for European football clubs. Also a general discussion about sport marketing and the complexity of the sport product is also provided within the literature review. To answer the main research question, interviews with three board members of three individual League of Ireland clubs have been conducted. In addition to this two other interviews with persons associated with the League of Ireland have also been conducted. The research has identified important insights into the League of Ireland and a revenue model for the clubs within the league has been created. Recommendations have also been provided with a view to help maximise the clubs revenue streams. IV Contents 1.0 Introduction ...................................................................................................................................... 1 1.1 Background ................................................................................................................................... 1 1.2 Problem Discussion ....................................................................................................................... 1 1.3 Problem Definition ........................................................................................................................ 3 1.4 Purpose ......................................................................................................................................... 4 1.5 Limitations ..................................................................................................................................... 4 2.0 Literature Review .............................................................................................................................. 5 2.1 Sport Marketing ............................................................................................................................ 5 2.1.1 Sport Product ......................................................................................................................... 6 2.2 Understanding the football market .............................................................................................. 8 2.2.1 Revenue model for football clubs .......................................................................................... 8 2.3 Marketing Activities to Increase Revenue .................................................................................... 9 2.3.1 Football Stadium .................................................................................................................... 9 2.3.2 Merchandising ....................................................................................................................... 9 2.4 The Football Stakeholders .......................................................................................................... 10 2.4.1 Supporters ............................................................................................................................ 10 2.4.3 Sponsors ............................................................................................................................... 13 2.4.4 Investors (Owners) ............................................................................................................... 14 2.5 Football Brands ........................................................................................................................... 15 2.5.1 Brand Equity ......................................................................................................................... 15 2.5.2 Assessing Brand Equity in Sport ........................................................................................... 18 2.6 Summary ..................................................................................................................................... 21 3.0 Methodology ................................................................................................................................... 22 3.1 Scientific Approach ..................................................................................................................... 22 3.2 Research Strategy ....................................................................................................................... 23 3.3 Data Collection ............................................................................................................................ 24 3.3.1 Interviews ............................................................................................................................. 25 3.3.2 Documentation .................................................................................................................... 26 3.3.3 Primary Sources ................................................................................................................... 27 3.3.4 Secondary Sources ............................................................................................................... 27 3.4 Sampling ...................................................................................................................................... 27 3.5 Quality of Research ................................................................................................................. 28 4.0 Findings ........................................................................................................................................... 30 4.1 Presentation of Respondents...................................................................................................... 30 4.2 LOI Clubs Marketing Activities .................................................................................................... 31 4.3 Revenue model for clubs in the LOI ............................................................................................ 32 4.3.1 Match Day Revenue ............................................................................................................. 32 V 4.3.2 Commercial Revenue ........................................................................................................... 33 4.3.3 Participation Agreement ...................................................................................................... 35 4.3.4 European Prize Money ......................................................................................................... 37 4.4 Stakeholders in LOI ..................................................................................................................... 38 4.4.1 Supporters ............................................................................................................................ 38 4.4.2 Sponsors ............................................................................................................................... 39 4.4.3 Owners/Investors ................................................................................................................. 40 4.5 Brands in the LOI ......................................................................................................................... 41 5.0 Analysis ........................................................................................................................................... 43 5.1 Sport Marketing .......................................................................................................................... 43 5.2 Revenue model for clubs within LOI ........................................................................................... 44 5.2.1 Match Day Revenue ............................................................................................................. 44 5.2.2
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