Towards a Viable Business Model for the Management of Professional Football in Africa
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The business of sport: Towards a viable business model for the management of professional football in Africa Moeketsi Emmanuel Mosola Submitted in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Human Movement Sciences Option: Sport and Recreation Management in the Faculty of Humanities Department of Sport and Leisure Studies University of Pretoria South Africa Promoter: Professor A. E. Goslin July 2017 © University of Pretoria DEDICATION This doctoral thesis is dedicated to all my family members, especially my wife and my children; Lehlohonolo, Karabo, Motse, Tlotliso, and Bokang for providing me with the opportunity to study and with the inspiration for learning. To you I say thank you. This is also dedicated to the millions of our people in South Africa who under very difficult circumstances continue to search for education and knowledge. To all of you, I say education is Power! 2 © University of Pretoria DECLARATION OF LANGUAGE EDITOR I, Moeketsi Mosola, herewith declare that the language of this research report has been United Kingdom English edited in the APA style by Jill Bishop, a language practitioner and a full member of the Professional Editors’ Guild. ------------------------------------------ Moeketsi Mosola ------------------------------------------ Date I, the undersigned, declare that this thesis is my own original work and has not been previously used in full or in part at any other university for degree purposes. ------------------------------------ Moeketsi Mosola ------------------------------------ Date 3 © University of Pretoria ACKNOWLEDGEMENTS The Department of Sport and Leisure Studies at the University of Pretoria has provided me with the experience of a lifetime. The following colleagues, Professors, Anneliese Goslin (Promoter), Ben Steyn, Lourens Human, Drs. Gerrie van Wyk and Engela Van Der Klashorst, provided me with support and encouragement throughout the process. 4 © University of Pretoria Table of Contents SUMMARY ................................................................................................................................ 10 CHAPTER ONE: ORIENTATION, PROBLEM STATEMENT, AIM AND OBJECTIVES AND RESEARCH OF THE STUDY .......................................................................................................................... 14 1.1 INTRODUCTION .................................................................................................................. 14 1.2 RESEARCH PROBLEM AND RESEARCH QUESTION ............................................................. 15 1.3 AIM AND OBJECTIVES ........................................................................................................ 19 1.4 ACADEMIC VALUE AND CONTRIBUTION OF THE STUDY ................................................... 20 1.5 SYNOPSIS OF RESEARCH METHODOLOGY ......................................................................... 20 1.6 LIMITATIONS OF THE STUDY .............................................................................................. 22 1.7 DEFINITION OF KEY TERMS USED IN THE STUDY ............................................................... 22 1.8 THESIS OUTLINE ................................................................................................................. 23 1.9 CHAPTER CONCLUSION ...................................................................................................... 23 CHAPTER TWO: THE BUSINESS OF PROFESSIONAL SPORT ...................................................... 24 2.1 INTRODUCTION .................................................................................................................. 24 2.2 THE CONCEPT OF PROFESSIONAL SPORT .......................................................................... 24 2.3 THE PARADIGM SHIFT FROM AMATEUR TO PROFESSIONAL SPORT ................................. 26 2.4 TRENDS IN THE GLOBAL SPORT INDUSTRY ........................................................................ 34 2.4.1 Size of the global sport market ....................................................................................... 34 2.4.2 Revenue trends in professional sport in Europe ............................................................ 34 2.4.3 Revenue trends of professional sport in Africa .............................................................. 36 2.5 GENERIC BUSINESS MODELS AND SPORT BUSINESS MODELS .......................................... 37 2.5.1 Elements of a generic business model ........................................................................... 38 2.5.2 The Harvard Business of Sport Model ............................................................................ 40 2.5.3 Borland’s Economic Production Model of Professional Sport Teams ............................ 44 2.6 SIMILARITIES AND DIFFERENCES BETWEEN SPORT BUSINESS MODELS AND A GENERIC BUSINESS MODEL ..................................................................................................................... 47 2.7 CHAPTER CONCLUSION ...................................................................................................... 48 CHAPTER THREE: THE BUSINESS OF PROFESSIONAL FOOTBALL ............................................. 50 3.1 INTRODUCTION .................................................................................................................. 50 3.2 DRIVERS OF GENERIC AND SPORT BUSINESS MODELS ...................................................... 50 5 © University of Pretoria 3.3 PROFESSIONAL BUSINESS MODELS OF FOOTBALL ............................................................ 51 3.4 PROFESSIONAL FOOTBALL BUSINESS MODEL IN EUROPE ................................................. 55 3.4.1 Defining the European football industry ........................................................................ 55 3.4.2 Governance structure of European professional football .............................................. 56 3.4.3 Competitions as part of a value proposition–UEFA Champions League ........................ 65 3.4.5 Financial aspects ............................................................................................................. 68 3.4.6 Other key factors ............................................................................................................ 68 3.5 PROFESSIONAL FOOTBALL BUSINESS MODEL IN AFRICA .................................................. 69 3.5.1 Defining an African professional football business model ............................................. 69 3.5.2 Governance structure of African professional football .................................................. 69 3.5.3 Competitions as part of the value proposition ............................................................... 78 3.5.5 Financial aspects ............................................................................................................. 79 3.5.6 Other key factors ............................................................................................................ 84 3.6 INTERPRETATION OF AFRICAN PROFESSIONAL FOOTBALL MODELS ................................ 85 3.7 COMPARING EUROPEAN AND AFRICAN PROFESSIONAL FOOTBALL MODELS .................. 89 3.8 CHAPTER CONCLUSION ...................................................................................................... 91 CHAPTER FOUR: RESEARCH DESIGN AND METHODOLOGY .................................................... 92 4.1 INTRODUCTION .................................................................................................................. 92 4.2 RESEARCH PHILOSOPHY ..................................................................................................... 92 4.3 RESEARCH APPROACH ....................................................................................................... 93 4.4 RESEARCH METHODOLOGY ............................................................................................... 94 4.4.1 Research sampling .......................................................................................................... 95 4.4.2 Research population ................................ ....................................................................... 95 4.4.3 Target population ........................................................................................................... 95 4.4.4 Accessible population ..................................................................................................... 95 4.4.5 Research sample technique and sample size ................................................................. 95 4.5 DATA COLLECTION ............................................................................................................. 96 4.5.1 Quantitative data collection ........................................................................................... 97 4.5.2 Qualitative data collection .............................................................................................. 97 4.5.3 Document analysis ........................................................................................................ 100 4.6 DATA ANALYSIS ................................................................................................................ 102 4.6.1 Quantitative data analysis ............................................................................................ 102 4.6.2 Limitations of quantitative data ................................................................................... 103 6 ©