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Challenges of the Canadian Premier League in Its First Season Learnings from Early Experience and Contrasting with Business Start-Ups

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Challenges of the Canadian Premier League in Its First Season Learnings from Early Experience and Contrasting with Business Start-Ups M.Sc. in Business Management Department of Business Administration Challenges of the Canadian Premier League in its first season Learnings from early experience and contrasting with business start-ups January, 2021 Name of student: Sebastian Goldstein Kennitala: 050388-4339 Supervisor/s: Thóranna Jónsdóttir Acknowledgements First and foremost, I would like to thank my supervisor, Thóranna Jónsdóttir for her excellent feedback, support, and guidance throughout this process. I would also like to extend my sincere gratitude to the study participants that agreed to be interviewed by me as part of this research. I would like to thank my friends and family for their continuous support. Lastly, I would like to give a special thank you to my partner Soffía, who has been by my side throughout these unprecedented times – your positivity and constant encouragement were greatly appreciated. 2 Declaration of Research Work Integrity This work has not previously been accepted in substance for any degree and is not being concurrently submitted in candidature of any degree. This thesis is the result of my own investigations, except where otherwise stated. Other sources are acknowledged by giving explicit references. A bibliography is appended. By signing the present document, I confirm and agree that I have read RU’s ethics code of conduct and fully understand the consequences of violating these rules in regards of my thesis. January 4th, 2021, Winnipeg, Canada 050388-4339 ……………………………………………………………………………………………. Date and place Kennitala Signature 3 Abstract In 2019, the Canadian Premier League (CPL) kicked off its inaugural season. The CPL is a newly established tier-one domestic entity that filled a void for professional football in Canada. Previous attempts to establish a professional football league in the country failed due to various reasons. League officials seemed to face insurmountable challenges prior to the start of the league’s inaugural season. Nevertheless, the new venture concluded its first season and received great reviews from local media. Little research has been published regarding the CPL in general and on its challenges in particular. Therefore, this thesis investigates the challenges of the Canadian Premier League in its first season and additionally contrasts the findings with obstacles regular business start-ups are facing. The researcher utilized a qualitative research approach for this study. Semi-structured interviews with open-ended questions were conducted with eight study participants. The research shows that league officials did a great job of anticipating potential challenges and put a sound league structure in place that facilitates the viability of the league and its clubs. However, the study also shows that the CPL and its clubs faced both, previously known and unknown obstacles that appeared prior, as well as during the inaugural season. Many of the league’s identified challenges are similar to the ones regular business start-ups are facing. However, both entities are difficult to contrast as they demonstrate stark differences. Sport in general is a particular business and the CPL sets itself apart due to its community involvement and unique ownership structure. Keywords: Canadian Premier League, Sport Management, Business Challenges, Business Start-Ups, Entrepreneurship 4 Table of Contents Abstract............................................................................................................................ 4 1. Introduction ................................................................................................................. 8 1.1. Research Question ................................................................................................. 9 1.1.1. Context of the CPL: What approaches did the CPL use to establish a professional soccer league in Canada? .............................................................................................................................. 10 1.1.2. Research Question 1 (RQ1): What are the challenges of the CPL? ........................................ 10 1.1.3. Research Question 2 (RQ2): Did the CPL face similar obstacles than regular business start- ups and to what extend are the two entities comparable? .................................................................. 10 2. Literature Review ..................................................................................................... 12 2.1. Context and background in regards to professional sports leagues in North America and Europe ................................................................................................... 12 2.1.1. Comparison between North America and Europe ................................................................... 13 2.2. General challenges of professional sports leagues .............................................. 15 2.2.1. Demand .................................................................................................................................... 15 2.2.2. Financial Constraints ............................................................................................................... 16 2.2.3. Revenue generation ................................................................................................................. 18 2.2.4. Team location .......................................................................................................................... 19 2.3. Lessons learned from the establishment of professional soccer in the US .......... 19 2.4. Football in Canada ............................................................................................... 21 2.5. The business start-up ........................................................................................... 23 2.5.1. Entrepreneurship ...................................................................................................................... 24 2.5.2. Start-up process ....................................................................................................................... 24 2.5.3. Challenges ............................................................................................................................... 25 2.5.4. Growth opportunities ............................................................................................................... 26 3. Methodology .............................................................................................................. 28 3.1. Methodological Approach ................................................................................... 28 3.2. Participants........................................................................................................... 29 3.3. Data collection ..................................................................................................... 31 3.4. Data analysis ........................................................................................................ 32 3.5. Limitations of study and encountered obstacles .................................................. 33 4. Results ........................................................................................................................ 35 4.1. Approaches used to establish a new professional soccer league in Canada ........ 35 4.1.1. Employees ............................................................................................................................... 36 4.1.2. League Structure ...................................................................................................................... 37 4.1.3. Team owner profile ................................................................................................................. 39 4.1.4. Partnerships and Sponsors ....................................................................................................... 39 4.2. Challenges ............................................................................................................ 41 4.2.1. Perception of the Sport in Canada ........................................................................................... 41 4.2.2. Geography ............................................................................................................................... 42 4.2.3. Infrastructure ........................................................................................................................... 43 4.2.3.1. Stadiums........................................................................................................................... 43 4.2.3.2 Establishment of new clubs .............................................................................................. 44 4.2.3.3. Player housing.................................................................................................................. 45 4.2.4. Monetary issues ....................................................................................................................... 45 5 4.2.4.1. Sponsors ........................................................................................................................... 46 4.2.4.2. Cash Flow ........................................................................................................................ 47 4.2.4.3. Salary Cap ........................................................................................................................ 48 4.2.4.4. Human Resources ...........................................................................................................
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