Evaluation of Components of Business Model in Lithuanian Football Clubs

LITHUANIAN SPORTS UNIVERSITY TOURISM AND SPORTS MANAGEMENT STUDY PROGRAM

SALMAN FARRIS KALATHIL PUTHIYAPURAYIL

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EVALUATION OF COMPONENTS OF BUSINESS MODEL IN LITHUANIAN FOOTBALL CLUBS

FINAL MASTER ‘S THESIS

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TABLE OF CONTENTS

SUMMARY SANTRAUKA ABBREVIATIONS

INTRODUCTION ...... 6 1. LITERATURE REVIEW ...... 10 1.1. Key Aspects of Understanding the Concept of Business Model and the Football Industry...... 10 1.2. Business Model and Its Application ...... 11 1.3. Types of Business Models in Football ...... 14 2. RESEARCH METHODOLOGY ...... 29 3. RESULTS ...... 31 3.1. Business model used by football clubs playing in the first league...... 31 3.2. Business model used by football clubs playing in the second league ...... 32 3.3. Comparison of business model used by football clubs playing in the first and second league in Lithuania...... 33 4. DISCUSSION...... 40 CONCLUSION ...... 47 REFERENCES ...... 50 APPENDICES ...... 53

SUMMARY

Key word: Football, league, Business model, youth, marketing, supporters Aim of the study: evaluate of components of business model in Lithuanian football clubs. Objective 1. Explain theoretical aspects of understanding the concept of Business Model 2. To identify the present business model used by football clubs playing in the first division. 3. To identify the present business model used by football clubs playing in the second division. 4. To compare the present business model used by football clubs playing in the first and second division. Research methods and organization. A quantitative study was done using questionnaire including 15 questions and 9 sections. An ethical approval was obtained from the university ethical commettee and informed consent was signed by the participants. Participants were coaches, clubs administrators, directors, accountants, directors, sports managers with minimum 3 or more years of experience with current football club. Data was collected using questionnaire and changed into numerics using Microsoft excel spread sheets and statistical analysis was done using SPSS 2.11. Descriptive analaysis was done according to age category, gender and position in the football club. To check the normal distribution of the data Shapiro-wilk test was used. When data was found not normally distributed then non parametric test Kruskal Wallis Test to analize the independent parameters according to the varibales. Conclusions 1. Present business model used by football clubs playing in the first league is a strong business model but still lacking to utilise 4 P principle and their supporters engagement. 2. Present business model used by football clubs playing in the second league is a progressive business model which probably will help them to raise their funds and value. 3. Second league clubs are strong in their supporters engagement and relationship with the organizing bodies but still lacking a strong platform to develop youth. 4. The present business model used by football clubs playing in the first and second league has many differences in terms of marketing strategies, supporters engagement program and youth program.

SANTRAUKA

Raktažodžiai: futbolas, lyga, verslo modelis, jaunimas, rinkodara, sirgaliai Tyrimo tikslas: įvertinti verslo modelio komponentus Lietuvos futbolo klubuose. Uždaviniai: 1. Paaiškinti teorinius verslo modelio koncepcijos supratimo aspektus 2. Apibūdinti verslo modelį, kurį naudoja pirmajame divizione žaidžiantys futbolo klubai. 3. Nustatyti verslo modelį, kurį naudoja antrajame divizione žaidžiantys futbolo klubai. 4. Įvertinti verslo modelius, kuriuos naudoja futbolo klubai, žaidžiantys pirmajame ir antrajame divizionuose. Tyrimo metodai ir organizavimas. Kiekybinis tyrimas buvo atliktas naudojant klausimyną, įskaitant 15 klausimų ir 9 skyrius. Iš universiteto etikos komiteto buvo gautas etinis pritarimas, o dalyviai pasirašė informuoto asmens sutikimą. Dalyviai buvo treneriai, klubų administratoriai, direktoriai, buhalteriai, direktoriai, sporto vadybininkai, turintys ne mažiau kaip 3 ar daugiau metų patirtį futbolo klubuose. Duomenys buvo surinkti naudojant klausimyną ir interviu metodus, statistinė analizė buvo atlikta naudojant SPSS 2.11. Aprašomoji analizė buvo atliekama pagal amžiaus kategoriją, lytį ir poziciją futbolo klube. Siekiant patikrinti normalų duomenų pasiskirstymą, buvo naudojamas Shapiro-wilk testas. Išvados 1. Dabartinis verslo modelis, kurį naudoja pirmoje lygoje žaidžiantys futbolo klubai, yra stiprus verslo modelis, tačiau jam vis dar trūksta 4 P principo ir jų rėmėjų įsitraukimo. 2. Dabartinis verslo modelis, kurį naudoja antroje lygoje žaidžiantys futbolo klubai, yra progresyvus verslo modelis, kuris tikriausiai padės jiems surinkti savo lėšas ir vertę. 3. Antrosios lygos klubai yra stiprūs palaikančiųjų santykiuose ir santykiuose su organizatoriais, tačiau vis dar neturi tvirtos platformos jaunimui ugdyti. 4. Įvertinti verslo modeliai, kuriuos naudoja pirmoje ir antroje lygoje žaidžiantys futbolo klubai, turi daug skirtumų rinkodaros strategijų, sirgalių įsitraukimo ir jaunimo programų vystymo požiūriu.

INTRODUCTION

The relevance. Football has become a massive part of society, and it has a become part of culture all over the world, especially in Europe. Not only social impact but also financial implications through the elite competitions of UEFA. The participant gets a tremendous amount of money every year so that once a club has qualified for the competition, the club itself change their status and consider more professional approach to football in order to fulfil the standards of the competition and to compete in the elite competition every year for social and economic benefits (Dima, Teodor, 2015). The football industry is developing day by day, and clubs need to innovate new models despite this development. "European Football has altogether changed particularly throughout the most recent 20 years, following a serious cycle of trading and marketing, a cycle that has brought significant wholes of cash" (Dima, 2015, p.1245). The football industry has become a significant financial industry, and the commercialization of football required the professionalization of football clubs (Söderman, 2013). As per Söderman (2013, p.7) football clubs don't just offer a service, however they likewise give interconnected "value capture". This worth catch incorporates groups, sport rivalries, players, football administrations, product, and business exercises. New arenas, broadcasting organizations, productivity of players and transferring main players and numerous components make football an appealing industry and a business (Şener and Karapolatgil, 2015, p.15). The focal strategy issue for administrators is generally basic: how to figure and execute strategies that create value for clients and catch benefits for the football club (Johnson, 2011). There are a large number of conceivable asset and capacity arrangements a football club can decide to create value yet besides numerous vulnerabilities that can keep them from changing over these designs into items that make value for clients and in this manner benefits for the football club. Industry plans and business models are complementary ideas that can help administrators in understanding the scope of asset and capability designs and vulnerabilities they face in choosing a strategy with a reasonable likelihood of producing value for clients and catching benefits for their football club.

An analysis of literature shows (Dima, Teodor, 2015) that the current business model of European Football Industry depends on three significant incomes – creating factors: 1. Media rights – the value paid by media organizations so as to broadcast the sport events 2. Commercial income – cumulates sponsorships (primarily from putting the brands on shirts, around the arena, media broadcasting) and different business income (advertising activities, conferences services, catering, and so on.); 3. Match day income – cash from ticket deals (counting season tickets memberships) and supporters' costs inside the arena (promotional products, services). Lithuanian Football Federation is one of the 55 European Union countries registered in UEFA, the highest authority of football in Europe. Lithuanian national football team is currently participating in the latest version of UEFA the Nation League and European qualifiers for Euro Championship. A LYGA is the top division of football league in Lithuania which consist of six teams in the 2020 season. Unfortunately, it is the lowest number of participants since the foundation of the league. The team who finishes first will be awarded the LFF championship and an opportunity to participate in the UEFA champions League qualifying round, and the teams finish second and third will be competing in the Europa League qualifier. Moreover, it is implausible last season started with 8 teams but unfortunately due to the lack of financial support, debts and poor management two teams could not complete the league. Therefore, the football clubs in Lithuania must develop a business model of their own to compete and stay in the top division of the Lithuanian football league. Novelty. Sports clubs need to be able to withstand the growing competitive pressures in order to stay competitive and in the football market. The relevance of a topic can be defined by the fact that the application of a particular business model can ensure the success or failure of every sports club. Such a sports club, in order not only to survive in the market, but also to achieve good results, must know in what ways or means it can increase its entrepreneurship or demand in competitive activities. It is a complex process, because, for example, attracting spectators, fans, service users is one task, and how to make similar processes work, creating added value for the club, is quite another. Understanding how the business model works, what impact it has on the organization itself, the work tries to identify the essential components of such a model and evaluate them properly. It goes without saying that every sports club, in an effort to compete, additionally organizes various competitions, about the processes taking place in the club, creates interesting and fun presentations on social networks, offers various services, the best coaches,

7 and all to gather a large number of spectators, fans, a community of beneficiaries that brings multifaceted benefits. But that is not enough. Unfortunately, today there are almost no data on what specific, relevant, business model can be applied to Lithuanian football clubs in order to not only survive in a competitive environment, but also to create added value through their activities. It can be argued that this phenomenon is understood differently not only by scientists or economists, but even each country has its own degree of perception.This can be based on the fact that it is not a situation, a state that can be measured by one or more parameters.The mechanism of the applied business model is a complex phenomenon and in all cases it is related to productivity: it determines the extent to which economic value will be created or the level of return on investment. In other words, there is a lack of research available comparing the existing business model in the Lithuanian football club playing in the first and second division. Aim of the study: To evaluate of components of business model in lithuanian first and second leagues football clubs Objectives: 1. Explain theoretical aspects of understanding the concept of Business Model 2. To identify the present business model used by football clubs playing in the first division. 3. To identify the present business model used by football clubs playing in the second division. 4. To compare the present business model used by football clubs playing in the first and second division. Hypothesis: The mechanism of the applied business model is a complex phenomenon and in all cases it is related to productivity. It is assumed that football clubs playing in the first division have adopted a better business model than football clubs playing in the second division. Structure of thesis: This thesis is going to use quantitative method and going to explore the existing business model in the Lithuanian football club playing in the first and second division. • The theoretical part will be included to explain about literature background the topic. • The analytic part will be included to identify the existing business model in the Lithuanian football club playing in the first and second division and its relationship using scientific articles. • Experimental part included toanalyze the results collected using open and closed ended questionnaires. 8

Research methods: 1. Analysis of scientific literature 2. Questionnaire 3. Statistical analysis The theoretical significance of the study: This study identified the specific business models used among football clubs playing in the first division of Lithuanian football club. This study explored the factors which hinder the success of football clubs playing in the second division and their business model The practical significance of the study: This study helps the football club leaders to understand the positive effects of an adapted business model and provide information regarding steps required to adjust their football club according to the successful business model. It can be concluded that in the modern market economy, the application of business models is understood as one of the integral components. Competitive struggle is becoming an increasingly relevant phenomenon, which forms one of the inseparable parts of business, state, and various cluster strategies.

1. LITERATURE REVIEW

The literature review discusses about some theories of business model explained in previous literature and then we will be discussing about football as an industry. In addition, it contains the analyses of different business models that exist in the football world. Moreover, the paper will discuss about the business model in football industry in detail, especially in Europe. In the first subsection we will talk about key aspects of understanding the concept of Business Model and the football industry. In the second subsection, we will analize Business Model and its application. Third subsection is connected with existingt popular types of Business Models in football industry.

1.1. Key Aspects of Understanding the Concept of Business Model and the Football Industry.

The term of" business model" initially introduced in the scientific literature during 1957 and 1960 in the title of academic article. But, most of the authors said the term "business model" is utilized in the management literature by 1990.In addition,there are also different opinions among the authors that the term “business model” is not utilized in public since the development of business model was initially used by practitioners and afterward conceptualized by researchers.The term “business model” is used as the substitute for strategy such as revenue model, economic model, business process modelling etc. (DaSilva and Trkman, 2013). Teece (2010) says that the center of the Business Model is the means by which the enterprise goes about when defining how the enterprise delivers value to its clients, how it draws in its clients to pay for that value lastly how it converts that into a profit. Teece (2010) additionally lifts up that Business Model will mirror the administration's view and their speculation about exactly what the client needs. How they need it and how to best arrange methods for meeting these ends. At that point additionally how move these needs to the clients, while simultaneously increasing a profit in the enterprise. It doesn't make a difference, which area one works in, there exists clear criteria, which will help empower one to "decide if one has planned a decent Business Model" (Teece, 2010, p.174). As author indicated, a decent Business Model should assist to yield value propositions, which are very convincing to its clients. It ought to likewise accomplish beneficial expense and risk structures and help empower a huge catch of significant value to the enterprise that made and delivered the service and product. (Teece, 2010). Zott and Amit (2010), in their article explains Business Model as something as "a system of related exercises that transcends the central firm and ranges its boundaries" (Zott and Amit 2010 10 p.216), they later used an alternate definition, which is "the content, structure, and governance of transactions designed to make a value through the exploitation of business openings" (Zott and Amit 2010 p.219). Zott and Amitt (2010) explains that a Business Model can be viewed as a format of exactly how the business will go about when leading business and capture income for its stakeholders, just as how the firm "joins factor and product markets" (Zott and Amit 2010 p.222). This while activity system, has as objective to address every single fundamental issue and furthermore provide managers with an applied tool kit, just as scientists in the academic world, a language to address the issues. Zott and Amitt (2010) gives three reasons why their viewpoint on active system is beneficial for academics and managers who are worried about the past. Business model is been described in different ways by many authors. Majorly a business model is a outline of the current business which explains the company’s mission and vision. A proper business model reflects the actions the of company to achieve their goals using various strategies. Business model is the overview of the company’s functional infrastructure.

1.2. Business Model and Its Application

Any football club's business model ought to be embedded inside the football business framework. That model ought to explicitly consider the entire arrangement of its stakeholders. In such framework, it is important to develop reputation as the primary component of fascination for newcomers, and, subsequently, to in this way make financial value. This includes the football business medium (clubs and associations), the structure of sources of salary (media, globalization, exchange, companies, capital, fans and players) and the use structure (contenders, group of interest, providers and infrastructure). These components (joined with the club's vision and strategy) make the football organize to achieve value (Sasson, 2013). The following basic provisions can be used to describe the essence of the business model that can be applied to the activities of football clubs: 1. It helps the individual who needs to take choices about the Business Model design and choose which activities to utilize. This can be as to choose, which activities to stay with inside the firm and which to out-source.

2. It assists with giving the organization an all holistic and orderly perspective when planning the Business Model. Zott and Amitt (2010) portray this metaphorically as "The message to the administrators is clear: take a look at the forest, not the trees – and get the general plan right, instead of optimizing details." (Zott and Amitt 2010, p.223) 3. Focus on activities Zott and Amitt (2010) explains is "an attention on activities permits us to loosen up a few assumptions made in the Transaction Cost Economics (TCE) writing – for instance that the governance difficulties of firms engaged with an exchange will be homogeneous" (Zott and Amitt 2010 p.223). Johnson, Christensen and Kagermann (2008), clarifies Business Model ought to contain components, for example, profit formula, customer value proposition, key resources and key processes. As indicated by Johnson et al., (2008), these components, expressed above are interlocked and by a long shot the most significant. These were brought up in their article to be CVP (Customer Value Proposition). Together they assume a pivotal part in making value for the organization. As clients have needs, which can be everything from service need to need of a particular product, the organization who can effectively distinguish and fulfill this need will create a profit. This is then caught by the organization itself, which is actually the explanation behind any organization to exist as long as its profit-oriented. One could sum up everything up with that a client has a job, which needs an answer that the organization can fulfill, it very well may be service or product such as extraordinary skill or a technological product just to give a model. This is then generating income, which at that point can be caught by the organization who sold the solution and afterward got back to the organization as profit. (Johnson et al., 2008) Customer value proposition (CPV) means that the successful organization is the person who has figured out how to make value for its customers. This will be an approach to help the client in completing a significant job (Johnson et al., 2008). Authorexplains job as "an essential issue in a given circumstance that needs a solution" (Johnson et al., 2008 p. 52). After have a comprehension of the job, how to figure all the measurements for completing it, a customer proposition can be made where an offering of solution for the client can be made. As indicated by Johnson et al., (2008), an offering is something that the client needs to satisfy a need it have, such as, a solution for its problem it is presently facing. It isn't simply explained by what it is yet, similarly as essential to remember how it is sold to the client. It is given that if the client considers problem to be as significant, this will impact the degree of client acknowledgment to different arrangements, for example, current ones will be. Model given if the client considers this to be as significant, the client acceptance of current solution will be very low. This along with as per Johnson et al., (2008) the new solution offered by the organization in the event that it is better that is considered the price tag of this new solution the better the organization's CVP will compete: 12

1.Profit formula: This can be seen by Johnson et al., (2008) as an outline, which depict exactly how the organization goes going to make a value for itself and as yet delivering truly necessary value to its client. profit formula comprise of the following as per Johnson et al., (2008). 2. Revenue model: price x volume 3. Cost structure: this will essentially be affected by the costs originating from the key resources, which are required by the BM. To this Johnson et al., (2008) makes reference to variables, for example, economy of scale, direct and indirect costs. 4. Margin model: "given the expected volume and costs structure, the contribution required from every transaction to accomplish wanted profits." (Johnson et al., 2008 p. 53) 5. Resource velocity: is the means by which quick stock turnover should be, fixed assets and other kinds of assets, how great utilization of resources should be "to support our expected volume and accomplish our foreseen profits" (Johnson et al., 2008 p. 53). Key resources: These are resources in the organization, for example, people, product, facilities and so forth which is needed to really deliver the offer to the client who has the job. As per Johnson et al., (2008) center here ought to associate with key components, which really make a value for both "the client and the organization and the way those components interact."(Johnson et al., 2008 p. 53). Key processes: The scholars take up here process that is essential for having the option to deliver value repeatable, it likewise contains the capacity to expand scale and covers such territories as operational and administrative process. Towards key processes organization rules, measurements and standards can be counted. (Johnson et al., 2008 p. 53) As indicated by Johnson et al., (2008) these previously mentioned components can be viewed as the squares by with any business works where customer value proposition and profit formula is explaining the value for both the organization and the client while the key resources and key processes manages delivering and capturing value. As indicated by Osterwalder and Pigneur (2010, p.14) "A business model depicts the reason of how an association creates, delivers, and captures value.". The beginning stage of a business model is an idea that streamlines explanation and discussion (Osterwalder and Pigneur, 2010). Furthermore, the business model assists to define the association and to distinguish other associations and contenders (Osterwalder and Pigneur, 2010). Furthermore, Osterwalder and Pigneur (2010) depict the business model as a language that makes and change strategic alternatives for associations. This system includes the thirty connections built up between the six components of “the football bundle” (team, sporting competition, club, event and arena, players and product) with the 13 five components of “clients/consumers” (fan base, club members, media, sponsors and nearby communities).In request to increase full benefit from the over, a scope of significant value drivers, (for example, brand, fan dedication or the adequacy of the team's playing performance) must be actualized; the point of these drivers is to help a system of related exercises that make value. (Sasson, 2013). A business model is useful in terms of managing the marketing strategies, sustaining the core ideas, raising finanaical values and arranging the stakeholders. Components of the business model among the football business (clubs and associations) are the structure of sources of salary (media, globalization, exchange, companies, capital, fans and players) and the use structure (contenders, group of interest, providers and infrastructure).

1.3. Types of Business Models in Football

Bourg and Gouguet (2012), Teodor (2015) establish the "SATI model” (Sponsors – Actionnaires – Television – International) as an acclimation to the monetary reality of game after 1995, beginning from football model. Bastien (2013) sums up what's more, differs both of the past renditions through the SATEMMI model (Spectators – Actionnaires – Television – Enterprise – Marches – Merchandising - International)". An analysis of the different literature shows (Dima, Teodor, 2015) that the current business model of European Football Industry depends on three significant incomes – creating factors: 1. Media rights – the value paid by media organizations so as to broadcast the sport events 2. Commercial income – cumulates sponsorships (primarily from putting the brands on shirts, around the arena, media broadcasting) and different business income (advertising activities, conferences services, catering, and so on.); 3. Match day income – cash from ticket deals (counting season tickets memberships) and supporters' costs inside the arena (promotional products, services). In some financial reports, the sponsorship income and different business income are evaluated independently. Taking into thought the current real factors of this industry, where the cash got from broadcasting has the best share, generally assuming a significant job, the above model – MCM (Media – Commercial – Match day) shows to the most suitable way to deal with European football business. For example, in Denmark, in addition to accepting capital injections, clubs have created different answers for the focal issue of remaining competitive. Storm contends that during the cycle of commercialization clubs have built up specific “programs” so as to streamline the odds 14 of getting effective – both monetarily and in sporting terms(Storm,2013). Altogether, these projects, which incorporate talent development, engaging sponsors, floating shares, facilities and stadium development and diversification, establish the Danish business model of professional football and will be quickly inspected in the following to show how the expert clubs have organized their market relations. (Storm,2013). In the course of events of commercialization, talent development was the initial program created by the clubs. In fact, it previously began being institutionalized before the commercialization cycle in which the clubs moved from the voluntary to the commercial sector. Notwithstanding, talent development presently helps the clubs both financially and according to sporting performance by developing players who can be used by the clubs themselves or sold on the world-wide transfer market. FC Midtjylland A/S is a case of a Danish club that has developed a conscious strategy of talent development and been very fruitful at selling players throughout the years (Søren Bennike, 2020) The second program created was engaging sponsors, which follows normally from the commercialization cycle itself. By selling sponsorship and utilizing football players as promoting represents different products, throughout the years the Danish clubs have expected to gain income that can be utilized for improving sporting performance and – thus – income. All clubs with desire of turning out to be fruitful are obliged to create projects to attract sponsors and increase income(Søren Bennike, 2020) The third program is the transforming of clubs into stockholding organizations and floating shares. This is basic to the comprehension of professional clubs as a component of the business sector. Danish top-level clubs were among the first in Europe to coast shares. In 1987, Brøndby IF turned into the subsequent football club in Europe (after Tottenham Hotspur a year sooner) to skim offers and become a stockholding organization. Numerous other Danish clubs followed, including Århus Elite A/S (AGF) in 1998, SIF Fodbold Support A/S (Silkeborg) in 1989 and PARKEN Sport og Entertainment A/S (FC Copenhagen) in 1997. Today, practically all Danish top-level clubs are stockholding organizations, numerous with floating shares. This advancement ought to be viewed as a feature of attracting sponsors and money investment to the club so as to stay competitive.(Søren Bennike, 2020) Facility and stadium development programs have likewise been aspect of the commercialization cycle. Most facilities are possessed by the municipalities, however a few clubs, for example, FC Copenhagen and Brøndby IF, have occupied with purchasing or building their own arenas. Throughout the years, league clubs have pushed for development of existing

15 facilities so as to attract more fans or sponsors, and during the 2000s many had their home grounds redesigned, fundamentally paid for by Danish municipalities. This implies the public sector (the municipality) is investing into facilities worked to help actors in the business area (Søren Bennike, 2020). According to Storm and Brandt (2008) around DKK 2.1 billion was put resources into Danish arenas for football and team handball somewhere in the range of 2001 and 2007. Besides, during a similar period extra plans were made to put around DKK 1.2 billion in similar kind of facilities. While there is no refreshed information accessible onthe amount of investment since 2007, obviously Danish professional football clubs have assumed a functioning part in advancing these ventures. Redesigned facilities are essential so as to improve request among sponsors and fans and are along these lines a fundamental device for achieving success. Diversification into other leisure and entertainment activities was a system of the Danish clubs from the beginning of the 2000s, it was seen by numerous clubs as a way to increasing extra revenue from, for instance, property investments, the experience economy and leisure activities, for example, shows and events. Indeed, even investment in fitness centers and hotels – or other property – was essential for the diversification process. FC Copenhagen specifically was fruitful in building an exceptionally diversified business by purchasing the Danish national stadium, PARKEN, a chain of fitness centers and an enormous holiday resort, while additionally building another holiday resort near the effectively settled LEGO amusement park in western Denmark. Other Danish football clubs were clearly roused by this and begun to diversify into other business too (Søren Bennike, 2020). Clubs face competing pressures while considering between resource design decisions: to take an interest in bidding wars to secure high market value talent in the transfer market or to develop players' talents inside the association; to receive an intentional and deliberate arrangement towards making club-specific shared group experience, or adopt a less vital strategy to team integration. Clubs may pick among these business model typologies as indicated by their accessible resources, however should be aware of the differing execution results they can expect regarding value creation for clients and value capture for the club. it likewise show that contending business model can be utilized in a similar setting – and that the successive interdependencies and compromises in their underlying dimensions doesn't really imply that just one of them will have the option to yield a club value creation and appropriation focal points over its rivals: clubs that comprehend the fundamental elements of these results can pick another business model if they wish to find some kind of difference between value creation and financial value appropriation.

Figure. 1. gives a two-by-two synthesis of these contentions, in light of the components of the external market value of talent and the improvement of amassed shared team experience, bringing about four stable business model typologies inside a talent based industry formula (Sasson, 2013).

Figure 1.Business model typologies: expected and resulting value creation and appropriation.(Sasson, 2013)

Business model 1.Both participating in the external market for talent and putting resources into creating aggregated shared team experience inside can affect both value creation and appropriation. Working anti-clockwise from the upper left quadrant of Figure 1 a club may picked a sort First business plan, includes investing just in lower (B class) player talent and furthermore receiving what we may call a “low shared team experience” strategy towards building amassed shared team experience bringing about what for shorthand will be called a “B talent, inexperienced” model. Such clubs will in general need both the imperative individual talent and the aggregate experience to work adequately as firm units, so we can anticipate that clubs following a Type 1 B ability, low shared talent experience business plan will produce both low value creation, estimated as focuses toward the finish of the season, and low value appropriation, estimated as profit for sales(Sasson, 2013)

Business model 2. Clubs that choose not to take part in the war to purchase in high level player talent can in any case despite everything decide to invest into building up an aggregate squad mentality, where colleagues figure out how to foresee the activities of others, and accordingly integrate and arrange their joint efforts all the more effectively, in a “B talent, experienced” model, as appeared in the lower left quadrant. More prominent shared experience will bring about the team filling in as stronger and more successful on-field unit, making up for lower individual talent levels, so that, by and large: clubs following a Type 2 B talent, high shared team experience business plan will produce moderate value creation, estimated as focuses toward the finish of the season, and high worth apportionment, estimated as profit for sales (Sasson, 2013) The other two business models in this typology expand on clubs making noteworthy investments in outside talent, which they will purchase the players with top (A class) talent. These clubs would then be able to decide to put or not in building up the experience of their team regarding the amassed shared team experience develop. This prompts the third business model types.(Sasson, 2013) Business model 3. Clubs that appreciate the mix of A-class talent and elevated levels of amassed shared team experience (i.e., utilizing “A talent, experienced” business model – see lower right quadrant) should field amazing teams that perform adequately and win regularly: such teams should be exceptionally appealing to customers, so we can anticipate A talent, experienced firms to be high in value creation. While the expense of securing such talent might be high, if the talent-based viewpoint is valid, winning teams will draw in more clients, who will pay more to watch their team, buy more product and yield extra income openings which should mostly balance greater expenses of getting talent, so that: clubs following a Type 3 A talent, high shared team experience business model will produce high value creation, estimated as focuses toward the finish of the season, and high value appropriation, estimated as profit for sales (Sasson, 2013). Business model 4. At last, we can expect that simply partaking in talent wars without making the suitable investment in the interior coordination of effort (as in the A talent, low shared team experience business model – upper right quadrant) will be hindering to a club's circumstance. Players will lack adequate shared experience and comprehension of one another's capacities to incorporate into a cohesive team unit on the field, which just comes after some time as they work together at the task of winning football matches. To a degree, their individual ability should mostly make up for this lack of collected shared team experience, so we can anticipate (Sasson, 2013) A team, inexperienced business model to have moderate degrees of significant value creation regarding points picked up toward the finish of a season. Then again, given its A-class 18 talent, the club's supporters may well anticipate significant levels of performance, and be frustrated when it is just moderate, decreasing their fulfillment beneath their desires, and with it their readiness to invest into the club’s merchandise or in other income generate opportunities. The expenses of this business model will be high, as A class player must be bought at open market costs, and given more unfortunate outcomes and hence lower incomes, we ought to expect such this business model to offer extremely low value appropriation, so that: clubs following a Type 4 A talent, low shared team experience business model will produce moderate value creation, estimated as focuses toward the finish of the season, and low value appropriation, estimated as profit for sales(Sasson, 2013) To conclude, clubs may pick among these four business model typologies as per their accessible assets, however should be aware of the differing performance results they can expect regarding value creation for clients and value capture for the firm. The first model is all about investing in B talent inexperienced players and trying to create a successful team and value, is more unlikely since it is very hard to win matches on the field and also value creation. The second model might work for some teams by investing in the academy and developing players and create shared team experience and understanding between the players may end in success but it will be time consuming. Moreover, it can create value moderately and the fans are expected to support more home-grown players. The third model is highly recommended since it is a combination of buying of talented player and also investing in youth to develop players and finally building up a team of mix of experience and talent which has a chance of success and high value creation. The fourth model is high risk model since it is recommended to invest in top quality players and building up of Galactic’s. The results are expected to be 50-50 chance of success and failure and hence low value appropriation (This business model canvas can see Table 1, which has four boxes: Infrastructure, Package of Offers, Customers,Finances, Osterwalder & Pigneur, 2010). Infrastructure. • Key partners: So as to enhance tasks and decrease dangers of a business model, associations ordinarily develop buyer-supplier connections so they can look into their main activity. Integral business partnerships likewise can be considered through joint ventures or vital partnerships between contenders or non-contenders.Organizations get into an association with different organizations to make assets and lessen risk with the arrangement. Moreover, organizations are searching for a partner who can arrive at the equivalent target group as the establishments and give financial assets. Football clubs need partners to be more fruitful. Money related help and venture make football clubs financially more grounded (Osterwalder and Pigneur, 2010). 19

Table 1.The Business Model Canvas (Osterwalder & Pigneur, 2010)

Key Key Value Customer Customer Partners Activities Propositions Relationships Segments

Who are our Key What Key What value do we What type of For whom Partners? Who are Activities do our deliver to the customer? relationship are we our key suppliers? Value Propositions Which one of our does each of creating Which Key require? Our customer’s problems are our Customer value? Who Resources are we Distribution we helping to solve? Segments are our most acquiring from Channels? What bundles of expect us to important partners? Which Customer products and services are establish and customers? Key Activities do Relationships? we offering to each maintain with Is partners perform? Revenue streams? Customer Segment? them? Which our customer Which customer needs ones have we base MOTIVATIONS CATEGORIES: are we satisfying? established? Mass FOR Production, How are they Market, PARTNERSHIPS: Problem Solving, CHARACTERISTICS: integrated Niche Optimization and Platform/Network Newness, Performance, with the rest Market economy, Customization, “Getting of our , Segmented, Reduction of risk the Job Done”, Design, business Diversified, and uncertainty, Brand/Status, Price, Cost model? How Multi-sided Acquisition of Reduction, Risk costly are Platform? particular resources Reduction, Accessibility, they? and activities Convenience/ KeyResources Usability Channels What Key Through Resources do our which Value Propositions Channels do require? Our our Customer Distribution Segments Channels? want to be Customer reached? Relationships How are we Revenue Streams? reaching them now? TYPES OF How are our RESOURCES: Channels Physical, integrated? Intellectual Which ones (brand patents, work best? copyrights, data), Which ones Human, Financial are most cost- efficient? How are we integrating them with customer routines?

Cost Structure Revenue Streams What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key For what value are our Activities are most expensive? customers really willing IS YOUR BUSINESS MORE: Cost Driven (leanest cost to pay? For what do they structure, low price value proposition, maximum automation, currently pay? How extensive outsourcing), Value Driven (focused on value creation, are they currently paying? premium value proposition). How would they SAMPLE CHARACTERISTICS: Fixed Costs (salaries, rents, prefer to pay? How much utilities), Variable costs, Economies of scale, Economies of scope does each Revenue Stream contribute to overall revenues?

TYPES: Asset sale, Usage fee, Subscription Fees, Lending/Renting/Leasing, Licensing, Brokerage fees, Advertising FIXED PRICING: List Price, Product feature dependent, Customer segment dependent, Volume dependent DYNAMIC PRICING: Negotiation (bargaining), Yield Management, Real- time-Market Designed by: The Business Model Foundry (www.businessmodelgeneration.com/canvas). Word implementation by:Neos ChronosLimited(https://neoschronos.com).License: CC BY-SA 3.0

Investors are the one that gives the most monetary help to football. Football clubs ought to guarantee monetary manageability and achievement. clubs need investment for team building, transfer, and attracting players, and keeping great players by significant compensation (Michie and Oughton, 2005, Firildak, Akin, 2020). Aside from the pay of football clubs, it tends to be given to put resources into the club with extra incomes and to give monetary comfort to the club. • Key activities:The most significant exercises in executing an organization's value proposition.As indicated by Osterwalder and Pigneur (2010), key activities "...are the most significant moves an organization must make to work effectively." (p.36). In expansion, key activities are essential to produce and present a value proposition, to carry income to the market and to look after client connections. Key activities have additionally a significant spot for football clubs since they are the exercises required for football clubs to make value. Putting money into the youthful institute and improving the players is one of the principle key activities of the clubs.

• Key resources:The assets that are important to make a value for the client. They are viewed as advantages for an organization that are expected to continue and backing the business. These assets could be human, financial, physical and intellectual.As indicated by Osterwalder and Pigneur, (2010) key resources "permit a venture to make and offer a Value Proposition, arrive at business sectors, keep up associations with Customer Segments, and procure incomes."(p.34). Controlled by the business model, key resources are required, which can be physical, money related, or human. There is an asset in the football business relying upon human capital, the distinct advantages of football clubs are football players, trainers and scouts.The principal focus of football clubs is to make a decent player and afterward to make a decent team. The principle wellsprings of football clubs are their players. Also, finding players and present them to the football market makes a club to be more effective and increment their popularity. (Radaelli et al., 2017). Trainers are another asset for football clubs. They assume a significant job in the handling and improvement of the most significant players for a football club. The primary wellspring of football clubs are football players, yet their trainers create and professionalize them. Consistently, unpracticed and youthful players join football clubs' youth institute, and trainers add to the tactical and technical advancement of these players (Di Minin et al., 2014). Package of Offers: • Value propositions:the assortment of items and administrations a business offers to address the issues of its clients. As indicated by Osterwalder, and Pigneur,(2010) organization's value proposition is the thing that recognizes it from its rivals. The value proposition offers some benefit through different components, for example, freshness, execution, customization, "taking care of business", plan, brand/status, value, cost decrease, risk decrease, openness, and accommodation/convenience. The offers might be: Quantitative – cost and productivity and Qualitative – generally client experience and result. In the value proposition offered by football clubs, they ought to pick potential value of partners and make proposals that are considered monetarily gainful for the club. The proficient utilization of the football club's assets expands the productivity and viability of the club and guarantees that its value is caught. Youth foundations permit football clubs to enlist new abilities, through which they advantage. Thus, youth institutes are vital for "product development". Utilizing their own assets viably and creating revenue are significant components for football clubs. In addition, it is significant for the accomplishment of a group that the club puts resources into youth institute and improves the execution of junior players (Dolles and Söderman, 2013; Vrontis, Thrassou, Kartakoullis and Kriemadis, 2014; Söderman, 2013).

Customers • Customer segments. Mass Market: There is no particular division for an organization that follows the Mass Market component as the association shows a wide perspective on expected customers. for example, Vehicle Niche Market: Customer division dependent on particular needs and attributes of its customers. for example, Rolex. • Segmented: An organization applies extra division inside existing client section. In the divided circumstance, the business may additionally recognize its customer’s dependent on sex, age, as well as purchasing power. • Diversify: A business serves various client portions with various requirements and qualities. • Multi-Sided Platform/Market: For a smooth everyday business activity, a few organizations will serve commonly subordinate client sections. A MasterCard organization will offer types of assistance to Visa holders while at the same time helping traders who acknowledge those MasterCard. Customers are the most essential component of a business model that allows a company to continue its activities by profiting (Osterwalder and Pigneur,2010). organizations must decide which segments to serve and design a business model to meet the needs of their customers.Football players become products for football clubs, who likewise add to incomes of a club. The player market development of a player with a substantial contract between two sport associations is called transfer (Andras and Havran, 2015). The achievement and disappointment of clubs vary as indicated by the limit of a club and a solid team is critical to be effective (Dolles and Söderman, 2013). Football clubs additionally make a likely client inside themselves. Every football club is a likely client of another as they are related to have the option to move the players that they have to improve their quality. Then again, strategy intended for enhanced clients serves two disconnected client portions with various requirements and issues (Osterwalder, Pigneur, 2010). In the football business, supporters are one of the most significant segments for clubs. "Football without fans with a common enthusiastic interest in their team's performance, and a passionate interest in the disappointment of their rivals, doesn't work – neither as a human experience nor as a business venture" (p.21). (Hamil, 1999; Ozawa, Cross & Henderson, Dolles & Söderman, 2013). • Channels:An organization can convey its incentive to its focused-on clients through various channels. Compelling channels will disperse an organization's value proposition in manners that are quick, proficient and financially savvy. An association can arrive at its customers through its own channels (retail front), accomplice channels (significant distributors), or a blend of both. Channels are one of the most significant pieces of the business model since 23 they give the association between the organization and client. Also, channels are an apparatus for organizations to publicize their services and permit clients to assess the organization's value proposition. Football competitions, that are trailed by a huge number of individuals, are the stage that clubs and players show themselves (Osterwalder & Pigneur, 2010). • Customer relationships:To guarantee the endurance and accomplishment of any organizations, organizations must recognize the kind of relationship they need to make with their customer segments. That component should address three basic strides on a customer relationship: How the business will get new clients, how the business will keep clients buying or utilizing its administrations and how the business will develop its income from its present clients. Different types of client connections include: Individual Assistance as assistance in a type of employee client cooperation. Such help is performed during deals and additionally after deals. • Committed Personal Assistance: The most private and hands-on close to home help with which an agent is appointed to deal with all the necessities and inquiries of an extraordinary arrangement of customers. Self Service: The sort of relationship that interprets from the circuitous communication between the organization and the customers. Here, an association gives the apparatuses expected to the clients to serve themselves effectively and viably. • Mechanized Services: A framework like self-administration however more customized as it can recognize singular clients and their inclinations. A case of this would be Amazon.com making book recommendations dependent on the attributes of past book buys. Networks: Creating a network takes into consideration direct communications among various customers and the organization. The people group platform delivers a situation where information can be shared and issues are solved between various customers. • Co-creation: An individual relationship is made through the client's immediate contribution to the ultimate result of the organization's items/services (Osterwalder & Pigneur, 2010). In the present football industry, online media is the most significant correspondence stage for the clubs to collaborate with supporters, as they are a critical wellspring of salary for the club. (Koenigstorfer, Groeppel-Klein and Schmitt, 2010). The fan base of football clubs has additionally developed quickly in the most recent decade with the development of the football business. As, football clubs need to communicate more with their fans and along these lines they utilize different web-based media stages. In expansion, web-based media has furnished a two-route relationship with fans for football clubs and gives an open door for groups to distribute data and restrictive offers from their online media accounts ((Koenigstorfer, GroeppelKlein and Schmitt, 2010; Kuzma, Bell and Logue, 2014).

Finances • Cost structure:This depicts the most significant financial results while working under various business model. An organization's DOC. Classes of Business Structures: Cost-Driven – This business model centers around limiting all expenses and having no nonsense. for example, cheap flights. Value Driven – Less worried about cost, this business model centers around making avalue for items and services. for example, Louis Vuitton, Rolex. Qualities of Cost Structures: Fixed Costs – Costs are unaltered across various applications. for example, wages, rent. Variable Costs – Costs change contingent upon the measure of creation of products or services. For example, concert. Economies of Scale – Costs go down as the measure of merchandise are ordered or delivered. Economies of Scope – Costs go down due to joining different organizations which have an immediate connection to the original item. In the football business, football clubs train junior players, and their elevated level trainers establish a significant expense for the groups to make open doors for players' enrollment (pool, rec center, physiotherapy, sports psychology). Club openings ought to be awesome for a football player to select in the best way. Numerous clubs are putting intensely in youth foundation institute, for example, football fields for players, whose maintenance make a cost for clubs. • Revenue streams:The manner in which an organization makes money from every client section. A few different ways to produce an income stream: Resource Sale – (the most well-known sort) Selling ownership rights to a physical decent. For example, retail enterprises. Use Fee – Money produced from the utilization of a specific assistance. for example, UPS. Membership Fees – Revenue created by offering admittance to a nonstop assistance. For example, Netflix. Loaning/Leasing/Renting – Giving selective right to a benefit for a specific timeframe. For example, Renting a Car. Authorizing – Revenue produced from charging for the utilization of an ensured licensed property. Business Fees – Revenue produced from an intermediate service between two people. For example, Dealer selling a house for commission.Promoting – Revenue created from charging expenses for item publicizing.Income stream is a part of how much pay will be earned from the objective crowd and the value proposition introduced (Osterwalder and Pigneur, 2010). It is an assurance of the incomes that the administration organization will get from its client. Today, football clubs produce an enormous aspect of their salary from transfer income, marketing, sponsorship, and broadcasting rights (Andras and, Havran, 2015). In thebusiness model, the revenue stream is formed decided by the client segment and the value proposition. For instance, Manchester United has set up many offerings focuses to offer its items to their fans in Asia. The achievement of a group builds the deals of authorized items, the gifted players and the trophies are the components that influence the fans (Ratten and Ratten, 2011). 25

Sponsorship is another significant wellspring of income in football. As per Dolles and Söderman, (2013, p.22) sponsorship can be a vital apparatus to shape furthermore, advance the picture of the football market for clubs and sponsors. Sponsorship settles on a positive understanding between the two parties, football clubs gain an extra pay through supporting organizations and furthermore supports can make their own commercials in the game business through football teams.Football clubs have become brands because of the expansion in the football business what's more, these elements positively affect the salary channels. The achievement of football clubs straightforwardly influences their incomes, and this is reflected in broadcast and arena (ticket costs) incomes (Şener & Karapolatgil, 2015). Otherwise, Porter’s five forces structure help decide the appeal of the industry’s competitiveness; these are the threat of entry, the threat of substitutes, the power of buyers, the power of suppliers and the degree of contention between competitors (Johnson, Scholes and Whittington, 2011). Additionally, five powers structure are identified with associations, a helpful beginning stage for making a key examination for the market. This hypothesis looks at how a football club examines potential contender groups while making a business model and how they should design as indicated by these investigations.firms, teams, and managers in the football business can build up their own models by key investigation or foresee threats ahead of time and act appropriately. The consistency of groups' arrangements is vital for their sportively and monetary achievement. Thinking about outside elements, playing it safe and making a model in the football business might be in the groups' advantage. "To investigate segment competitiveness, Porter's five forces model was utilized, involving the five forces that decide the appeal of the segment. An eminent whimsy of the football part in this setting however, is the way that "achievement" is dictated by factors past business boundaries, and fundamentally athletic accomplishment ones." (Rossi, Thrassou and Vrontis, 2013, p.550). The threat of new entrants is the way that it is anything but difficult to enter the division influences the level of rivalry: if the entry danger is high, it makes challenges for those in the business. So as to diminish the danger of new rivals in an industry, entry obstructions ought to be high in such a case that it is simple for contenders to enter the market, it might represent a danger later on and debilitate the situation of existing ones (Johson, Scholes and Whittington, 2011). New participants in the football business can represent an incredible danger to different groups. The new proprietors of the groups enter the market with a huge financial plan and guarantee that these groups represent a danger to different groups. For instance, expanding market incomes in European football turned into the objective of unfamiliar speculators, and one of them, Roman Abramovich, turned into the owner of Chelsea F.C. in 2003. Also, in a similar period, the money 26 related states of the European expert club weakened, and there was a high increment in player wages (Birkhäuser, Kaserer and Urban, 2017). "Buyers are the association's quick clients, not really the extreme shoppers. On the off chance that purchasers are powerful, at that point they can request modest costs or item or service upgrades obligated to decrease profits." (Johnson, Scholes and Whittington, 2011, p.58). Buyers power lessens or builds the benefit of suppliers. The most beneficial clubs in the football business are productive. There are low number of clubs in Europe with the capacity of creating football players; consequently, this capacity can assist these clubs with increasing a favorable position, when selling their players. "Suppliers are the individuals who gracefully the association with what it needs to produce the item or services. Just as fuel, crude materials and gear, this can incorporate work and wellsprings of account." (Johnson, Scholes and Whittington, 2011, p.58). The quality of suppliers is dictated by how effectively providers can change costs. As per remarkable items and services they give, it influences the intensity of suppliers decidedly. The Italian football crew Udinese Calcio is truly outstanding in raising and discovering players and it gives players to other football clubs and this club is characterized as "Europe's greatest talent factory" (Di Minin et al., 2014, p.331). The threat of substitution can be described as "substitutes are items or services that offer a comparable advantage to an industry's items or services, however by an alternate cycle." (Johnson, Scholes and Whittington, 2011, p.57). A modest and simple assistance can make a supplier change, which can sabotage organizations' position and decline their benefits. Clients can change to elective items and it can likewise set a cutoff on costs that can be procured in an industry. The level of competitive rivalry. "These more extensive serious forces all encroach on the direct serious competition between an association and its promptest rivalries." (Johnson, Scholes and, Whittington, 2011, p.59). In this classification, the number and quality of contenders is significant.In this class, the number and quality of contenders is significant. Factors, for example, the size and development of the market, the quantity of contenders and their point of view piece of the overall industry, levels of fixed expenses and obstructions to leave influence rivalry (Beech and Chadwick, 2004, p.225).

All football clubs become a threat to one another. The football business is developing to an ever-increasing extent, so clubs are contending hard to become champions furthermore, add to their revenue. Football clubs put resources into being the best in the season 27 and to surpass their opponents and create strategy likewise. Football clubs with quality youth institutes assume a part of providers in the football market. By utilizing the principle assets of football clubs to be deciding and creating likely players, they get an edge over the other clubs. In the football business clubs can build up their own business models by their own core values while doing key investigation or foresee threats ahead of time and act appropriately. All business model in football clubs revolves around clubs’s core values, vision, goals, target groups, their spectators, engaging fans, sponsors, media, youth programs, development of the youth talent, investments, fundings from the institutions, marketing strategies and current infrastructure.

2. RESEARCH METHODOLOGY

The empirical research was carried out in different football organizations playing in first and second league. A quantitative approach was chosen while using self made questionnaire to understand the existing business model in football clubs and the differences between football clubs playing in first and second league. The instrument of quantitative research: Questionnaire was used to identify the relationship in business model in the Lithuanian football club playing in the first and second division. Specialization: Football clubs employees head coaches, assistant coaches, administrators, managers, directors (Male/ Female) working in Lithuanian region. Gender: Majority of the responders were male among total participants number (n=20), male (n=14)and female (n=6). Age: Age distribution among sample of 20 participants. 30-35 age group have 7, 36-40 age group consist higher percentage of sample size 9, 41-50 age group have 4 of entire sample size of 20 football club employees. Work experience: Minimum experience 3 years or more as head coaches, assistant coaches, administrators, managers, directors in a football club. Should not be suffering from psychological disorders. Procedure: A quantitative survey using google forms had sent among football clubs official email addresses. Time: Time for data collection was held between 10 September 2020 till 10 November 2020. Data Analysis: Data was collected using questionnaire and changed into numerics using Microsoft excel spread sheets and statistical analysis was done using SPSS 2.11. Descriptive analaysis was done according to age category, gender and position in the football club. To check the normal distribution of the data Shapiro-wilk test was used. When data was found not normally distributed then non-parametric test Kruskal Wallis Test to analize the independent parameters according to the varibales. Survey organization and ethics: Questionnaire consists of total 15 questions and having 9 sections consisting 1 question each to evaluate business model among football clubs. Ethical approval: All the participants signed a consent form and confirmed a voluntarily participation in the study. Research population will be football club managers working in football clubs.

Organization of the research: The survey consist of close-ended questions. The demographic part consisted of four questions regarding gender, age, club name and position in the club. In Lithuania there are 6 football club teams which play in first league which is also called as A Lyga and total 14 teams playing in second league called as Lyga1. (Table.2.)

Table 2:The list of first and second league football teams of Lithuania. First league Second league football teams football teams 1. FK Kauno ZALGIRIS FK VYTIS Vilnius 2. FK Panevėžys FK DAINAVA Alytus 3. FK RITERIAI FC HEGELMANN LITAUEN 4. FK Sūduva FC DZIUGAS 5. FK ZALGIRIS FA Šiauliai 6. FK BANGA FK Panevėžys B 7. FK Jonava 8. FK MINIJA Kretinga 9. FK Kauno ZALGIRIS B 10. Baltijos FUTBOLO AKADEMIJA 11. ZALGIRIS Vilnius B 12. FK ATMOSFERA Mažeikiai 13. FK RITERIAI B 14. FK.NEVEZIS Kėdainiai

Responder's Designation in the club

Sports Manager 13.3 % 13.3 % Head of communications 6.7% 33.3% Assistant Coach 6.7% 20.0% Accountant 6.7%

Figure 2.The responders designation in the club.

In football club different designations are responsible for the role to provide business information. Among responders 33.3% were directors of the club, 20% were administrators, 13.3% were sports managers, head of marketing and least percentage 6.7 % were head of communications and assistant coaches (see Fig.2).

3. RESULTS

This section will summarize the results from collected data as descriptive statistics and give report on the findings from the relevant and appropriate analysis and interpretation.

3.1. Business model used by football clubs playing in the first league.

All the football clubs have (100)% youth program, strong media relatiosnhip (100%), least imporatance to the supporters (60%). There are differences in organizing bodies, arena/ stadium specific parameters and stakeholders among first league clubs which statistically significant (see Figure. 3) (p = 0.02; 0.04; 0.04); p < 0.05).

Arena/ stadium specific * Marketing strategies * Target groups (Stakeholders)

Organizing bodies * FK ZALGIRIS Media relationship FK SUDUVA Government and local FK RITEIRIAI authorities FK PANEVEZYS Supporters FK KAUNO ZALGIRIS

Youth Program FK BANGA

Responsibility in society

* Target Groups (Stakeholders) 0 20 40 60 80 100

Figure3. The business model followed by first league football clubs of Lithuania.

3.2. Business model used by football clubs playing in the second league.

There are big variations in terms of business model among second league football clubs. All the football clubs playing in second league does have (100%) youth program, strong media relatiosnhip (100%), marketing strategies (<80%) least imporatance to the supporters (60%). There are differences in organizing bodies, arena/ stadium specific parameters and supporters among second league clubs which statistically significant (See figure. 4) (p = 0.01; 0.03; 0.02);p<0.05.

FK.NEVEZIS Kėdainiai Arena/ stadium specific FK Panevėžys B

Marketing strategies FK VYTIS Vilnius

FK TRAKAI ꞁꞁ Organizing bodies ZALGIRIS VILNIUS ꞁꞁ

Media relationship BALTIJOS FUTBOLO AKADEMIJA Government and local FK KAUNO ZALGIRIS ꞁꞁ authorities FK MINIJA KRETINGA Supporters FK JONAVA

Youth Program FA SIAULIAI FC DZIUGAS Responsibility in society FC HEGELMANN LITAUEN Target Groups FK DAINAVA ALYTUS (Stakeholders) FK ATMOSFERA 0 20 40 60 80 100

Figure 4. The business model followed by second league football clubs of Lithuania.

3.3. Comparison of business model used by football clubs playing in the first and second league in Lithuania.

Business model consists of stakeholders, players salaries, youth programs, marketing strategies, supporters strategies, marketing tactics, media role and arena/ stadium management. Football clubs plays an important role in the society. Players are role model for the supporters and football clubs influence the social behavior towards them. Among first and second league football clubs in Lithuania, first league clubs give high importance to the rules and regulations(5), compliance, misbehaviors(5), sponsors image(5) and employees satisfaction where as second league football clubs gives high importance to the sponsors image (5), prices and place of the event (5). (See figure5.)

Working hours

Addressing social & cultural issues

Employees staisfaction *

Publicity, promotion, presentation, and…

Image of Sponsors organization logo,…

Price & place of event

Regularity in sports program

Policies to avoid off field misconduct by the…

Compliance and penalty system * Maintainence of sports rules and regulations

0 1 2 3 4 5 Second league teams First league teams

Figure 5.Social responsibility parameters of football clubs.

First league clubs pays salary to all of the players (100%) where as in second league only 54% players get salaries. (See figure.6)

100 100 % 80

60 54 % 40

0 First league teams Second league teams

Figure 6. Players salary from the club

Youth program helps the football clubs to develop players for future both first and second league have youth program. Fisrt league clubs have long term and short term plan for the youth (5), they try to watch off field behavior of the youth (5), you families doesn’t influence their decision (5), Second league club as compared with fisrt league give less impotance to these parameters (4), also to the evaluation and result of the program (3) (See figure 7).

Special support to the parents to pay… Youth background (rural , urban, race,… Youth families Evaluation & result of the program Achieving good grades in school to… Youth off -field behavio r Special sports motivational program for… Utilizing spare time of youth Aim to practice elite sports for youths Long term and short term plans…

0 1 2 3 4 5 Second league teams First league teams

Figure 7. Youth program in first and second league football clubs.

Do you have any cooperation with official supporter club Does club have meetings with supporters to share thougthts on… Have you experienced pressure from the supporters when the team… Does supporters can put pressure on the club regarding certain decisions… Can they influecne the players buy/sell Do these supporters have insight in the club regarding player signings Do you consider your paid audianc eas supporters for the club Do you have audiance that pay for enterance Do you have any organized supporter groups : 0 1 2 Second league teams First league teams

Fig.8. Supporters parameters among first and second league football club

First and Second league football clubs gives same opinion about government and local authorities, second leagues clubs lacks financial contribution from the government and local authorities which is statistically significant (p=0.04; p<0.05) differences in their opinion(See figure 9)

Does club have meetings with local authorities to share thoughts on current… Have you experienced pressure from the local authorities when the team… Does local authorities can put pressure on the club regarding certain decisions…

Can they influecne the players buy/sell

Do you think local authorities are influencial in the club management… Do you experience interference of local authorities into the club in daily… Do you feel that club need support from the government (New arena,… Does Lithuania contribute with money to the club :

0 1 2 Second league teams First league teams

Figure 9. Government and local authorities parameters among first and second league football club.

First and Second league football clubs gives same opinion very important (5) about their media relationship, second leagues clubs gives more importance to the media content and get special support from their media partners (See figure 10)

Special support from certain media partners

Managing the content for media

Media critics

Positive highlights in media

Role of media in your club

Good relationship with the media

0 1 2 3 4 5 Second league teams First league teams

Figure 10. Media relationship parameters among first and second league football club.

First and Second league football clubs gives different opinion about their relationship with organizing bodies, second leagues clubs gives more importance to the organizing bodies as compared to the first league clubs and there is statistically significant differences (p=0.05; p<0.005) in terms of position of Lithuanian federation in first and second league teams get spcial support from organizing bodies (See figure 11)

Rules and regulations of Lithuanian football federation for the club

Position of Lithuanai football federation in your club

Communication with the Lithuanian football federation

Relationship with the Lithuanian football federation

0 1 2 3 4 5 Second league teams First league teams

Figure 11. Organizing bodies parameters among first and second league football club.

First and Second league football clubs gives different opinion about their marketing strategies, second leagues clubs gives more importance to offer special packages and follow 4P’s principle for marketing as compared to the first league clubs and there is statistically significant differences (p=0.03; 0.02; p<0.005) in both parameters(See figure 12).

We offer special places to sports brand… We provide special passes to our… We use players profile as promotional tool We offer special packages to sports… We give high importance to public… We offer special incentives, commisions… We focus on educating and… We highly focus on publicity, promotion,… We take care about the location of the… We reduces the ticket prices during the… We raise the ticket prices during the… We offer special pricies during holidays/… We create packages to sell our matches… Our marketing stretegies revolves around… 0 1 2 3 4 5 Second league teams First league teams

Figure 12. Marketing strategies among first and second league football club.

First and Second league football clubs gives different opinion about their arena/ stadium specific parameters. Second league clubs create special packages and offer their areas for promotion to the sports companies as compared to the first league clubs and there is statistically significant differences (p=0.02; 0.04; p<0.005) in both parameters (See figure 13).

We give our arena/ stadium for conference/ other public events to raise funds during non-match day

We provide stalls for souvenir shop, kiosk during the matches to raise income

We invite mobile restaturants, pubs to attarct people who doesnot like to watch matches but like to enjoy the evening… We offer special pricies during holidays/ to our members, associated compnies/ individuals/ to our arena/ stadium

We create spacial packages to sell tickets for matches occuring in our arena/ statdium

Our arena offers other activies also to raise funds such as conference rroms, pubs, office, guided tours 0 1 2 3 4 5 Second league teams First league teams

Figure 14. Arena/stadium specific parameters among first and second league football club.

Second league football clubs are more interested in raising funds while inviting mobile restaurants, pubs so that match can be enjoyed by those people who just like to party with friends and has no interest in football match. Both First and Second league clubs offers special prices on non-match days as well as during holidays to invite people to their arena/ stadium.

4. DISCUSSION

In Lithuania there are only 6 football club teams play in first league which is also called as A Lyga and total 14 teams play in second league called as Lyga1. There is lack of sports managers in Lithuanian football as we see in football club different designations are responsible for the role of business communication. Mostly in first league they have sports managers position to communicate because avalaibility of the funds to hire and in second league as they are struggle and lacking financial support from the Lithuanian government most of the responders were directors of the club. Business model used by football clubs playing in the first league. A perfect business model is made when all the variables works in equilibrium and football clubs playing in the first league doesnot follow a perfect business model. In Lithuania all the football clubs have youth program and very strong media relatiosnhip but lacking the startegies to engage their fans/supporters. First league football clubs totally ignoring the fact to engage their supporters. There are differences in organizing bodies, arena/ stadium specific parameters and stakeholders among first league clubs which statistically significant. Fk Zalgiris followed their business model in equilibrium and set an good example for other clubs whereas FK Riteiriai do not have equilibirum in their business model. Facility and stadium development programs have likewise been aspect of the commercialization cycle. Most facilities are possessed by the municipalities,Throughout the years, league clubs have pushed for development of existing facilities so as to attract more fans or sponsors., and during the 2000s many had their home grounds redesigned, fundamentally paid for by Danish municipalities. This implies the public sector (the municipality) is investing into facilities worked to help actors in the business area (SørenBennike, 2020).Redesigned facilities are essential so as to improve request among sponsors and fans and are along these lines a fundamental device for achieving success.Commercial income – cumulates sponsorships (primarily from putting the brands on shirts, around the arena, media broadcasting) and different business income (advertising activities, conferences services, catering, and so on.);. Match day income – cash from ticket deals (counting season tickets memberships) and supporters' costs inside the arena (promotional products, services), Dima, Teodor, 2015). Business model used by football clubs playing in the second league. There are big variations in terms of business model among second league football clubs. All the football clubs playing in second league does have youth program which can lead to lack of talent in upcoming years, they have strong media relatiosnhip and also marketing strategies are pretty good.We observed second league clubs has some activities to engage their fans but least imporatance to the supporters. There are differences in organizing bodies, arena/ 40 stadium specific parameters and supporters among second league clubs means not all clubs have proper access to the stadium and doesnot get support from the organizing bodies as well as from the government. In case of A Lyga and 1 Lyga, no clubs have their own stadiums and they all rent the stadium from Municipality. the stadium facilities are limited and some of the stadiums does not have proper seating facilities and toilets. Most of the facilities are arranged temporary for match-days like temporary seating and mobile toilets. since the stadiums are under Municipalities, they should invest to make the stadium a better place for fans and sponsors which will convert into profit in future. The sponsors will provide advertisement to put around the stadiums which will increase the income and also the rooms in the stadium can be rented for catering services, the official merchandising store to sell licensed products which will increase the supporters cost inside the stadium and giving arena for concerts, meetings and festivals on non-match days will increase the revenue. Comparison of business model used by football clubs playing in the first and second league in Lithuania: We can emphasize, that Business Model consists of stakeholders, players salaries, youth programs, marketing strategies, supporters strategies, marketing tactics, media role and arena/ stadium management. Marketing Activities: Promoting – Revenue created from charging expenses for item publicizing. Income stream is a part of how much pay will be earned from the objective crowd and the value proposition introduced (Osterwalder and Pigneur, 2010).In the present football industry, online media is the most significant correspondence stage for the clubs to collaborate with supporters, as they are a critical wellspring of salary for the club. (Koenigstorfer, Groeppel-Klein and Schmitt, 2010). As per Dolles and Söderman, (2013, p.22) sponsorship can be a vital apparatus to shape furthermore, advance the picture of the football market for clubs and sponsors. Diversification into other leisure and entertainment activities was a system of the Danish clubs from the beginning of the 2000s, it was seen by numerous clubs as a way to increasing extra revenue from, for instance, property investments, the experience economy and leisure activities, for example, shows and events. Indeed, even investment in fitness centers and hotels – or other property – was essential for the diversification process.(SørenBennike, 2020).Football clubs need partners to be more fruitful. Money related help and venture make football clubs financially more grounded (Osterwalder and Pigneur, 2010).In expansion, web-based media has furnished a two- route relationship with fans for football clubs and gives an open door for groups to distribute data and restrictive offers from their online media accounts ((Koenigstorfer, GroeppelKlein and Schmitt, 2010; Kuzma, Bell and Logue, 2014).

Social media is the most used platform by A lyga clubs to sell the tickets. Promotional activites of A lyga clubs are mainly through the social media channels like facebook, twitter and Instagram. The matchday tickets and sponsorship money are the two main streams of income for A lyga clubs. A lyga clubs does not give special attention to sponsors by providing offers or special passes for their families. Partnership with sponsor is really important to make the club finanacially stable. Another revenue stream is by diversifying into leisure and entertainment business by making partnership with ventures and providing offers to the fans to engage in leisure activities. Second league clubs mostly follow 4P Principle that is place , product, prize and promotion. The entrance of second league matches are free so the main revenue is from sponsors and the mobile restaurants. Since most of the second league teams have official supporters, the cost inside the stadium spent in kiosks (food and beverages) are the only income on matchdays. Second league clubs are also well active in social media platforms to promote and announce the game time and place to attract the fans. Second league club can convert their fans into revenue in future. Organizing bodies: In Denmark, in addition to accepting capital injections, clubs have created different answers for the focal issue of remaining competitive. “Storm contends that during the cycle of commercialization clubs have built up specific “programs” so as to streamline the odds of getting effective – both monetarily and in sporting terms” (Storm,2013).Altogether, these projects, which incorporate talent development, engaging sponsors, floating shares, facilities and stadium development and diversification, establish the Danish business model of professional football and will be quickly inspected in the following to show how the expert clubs have organized their market relations. (Storm,2013).Lithuanian Football Federation can play an important role in making a sustainable business model for the ALYGA clubs to sustain in the league and also help the second division clubs to participate in the a A lyga. Both A lyga and 1 lyga clubs are very disciplined in following the rules and regulations of LFF. But the clubs in both divisions really do not care about position of the LFF in their clubs. So LFF should introduce more commercialization into A LYGA clubs by introducing new project by using components of Danish model such as talent development, engaging sponsors, floating shares, facilities and stadium development and diversification. Media: Media rights – the value paid by media organizations so as to broadcast the sport events (Dima, Teodor, 2015). Football clubs need to communicate more with their fans and along these lines they utilize different web-based media stages. In expansion, web-based media has furnished a two-route relationship with fans for football clubs and gives an open door for groups to distribute data and restrictive offers from their online media accounts ((Koenigstorfer, GroeppelKlein and Schmitt, 2010; Kuzma, Bell and Logue, 2014). Both the A lyga and lyga 1 league clubs are very much active in social media and they are trying to attract more supporters and 42 convert them into fans and later into income. Both the A lyga and lyga 1 clubs have very close relationship with public media also especially the second division clubs as they are more interested to form partnership and gain support from them. Media rights is one of the biggest revenue in football business, unfortunately due to few number of participating teams and repeated matches against each other and few fan base has costed the A LYGA broadcasting rights. So there is no paid telecast of A LYGA and DELFI TV is broadcasting A lyga for free in their YouTube channel. So none of the clubs are receiving any money from media rights. All the second division home teams are filming their home games in their own camera and should upload into cloud.eu platform where all the second division clubs can view. Only some teams put live on facebook. The LFF should change the format of the league and should attract more sponsors and quality players to the league inorder to get the media rights. Supporters: The fan base of football clubs has additionally developed quickly in the most recent decade with the development of the football business. As, football clubs need to communicate more with their fans and along these lines they utilize different web-based media stages. In expansion, web-based media has furnished a two-route relationship with fans for football clubs and gives an open door for groups to distribute data and restrictive offers from their online media accounts ((Koenigstorfer, GroeppelKlein and Schmitt, 2010; Kuzma, Bell and Logue, 2014).component should address three basic strides on a customer relationship: How the business will get new clients, how the business will keep clients buying or utilizing its administrations and how the business will develop its income from its present clients.Osterwalder&Pigneur, 2010).five components of “clients/consumers” (fan base, club members, media, sponsors and nearby communities). (Sasson, 2013).Supporters are the income generating machines and most of the A LYGA clubs do not have official supporter group. They agree they see the paid audience as their supporters or fans but there is no promotional activities or supporter engagement programs organized by any of the club. since the they don’t have stadium facility to arrange these programs, only income is from match day tickets and also since they don’t have supporter group, membership fees is not applicable.. Most of the Second division clubs have official fan groups and they have very close relationship with the communities. They organize community programs to keep a close relationship with the fans and the clubs can convert the customers and fans into loyal fans and then generate income in future. Stake holders: One of the stake holder program created was engaging sponsors, which follows normally from the commercialization cycle itself. By selling sponsorship and utilizing football players as promoting represents different products, throughout the years the Danish clubs have expected to gain income that can be utilized for improving sporting performance and – thus – 43 income. All clubs with desire of turning out to be fruitful are obliged to create projects to attract sponsors and increase income(SørenBennike, 2020). Stake holders are the people who are interested in the club. since most of the clubs does not have members, the sponsors are the main stake holders. Since the lack of specialist individuals in marketing, and the lack of promotional activities there is only limited sponsors. Even the digital advertising is not available in stadiums. The only advertisements are banners and flexes inside stadium during match days. While in second division some of the clubs have loyal fans who are members of the club and it can be converted into monetary benefits in future. Responsibility in community: Since the most of the First league clubs do not have fan base they are less engaged with the community. The only social responsible activities performed by the clubs is players visiting disable and orphan schools sometime. The second league clubs have shown more responsibilities towards community due to which they have fan following. Second league clubs are more engaged to the communal issues and they work as a joint venture in tackling social and communal issues. Many clubs are organizing district school football tournaments to involve more children and parents into sport and leisure activities. Youth progam: Talent development was the initial program created by the clubs. In fact, it previously began being institutionalized before the commercialization cycle in which the clubs moved from the voluntary to the commercial sector. Notwithstanding, talent development presently helps the clubs both financially and according to sporting performance by developing players who can be used by the clubs themselves or sold on the world-wide transfer market. FC Midtjylland A/S is a case of a Danish club that has developed a conscious strategy of talent development and been very fruitful at selling players throughout the years (SørenBennike, 2020). Both participating in the external market for talent and putting resources into creating aggregated shared team experience inside can affect both value creation and appropriation. Working anti-clockwise from the upper left quadrant a club may picked a sort First business plan, includes investing just in lower (B class) player talent and furthermore receiving what we may call a “low shared team experience” strategy towards building amassed shared team experience bringing about what for shorthand will be called a “B talent, inexperienced” model.sasson ,)2013.. Every club has youth program funded by LFF. LFF has introduced the Belgian Model Training to every club. so due the following of same philosophy in youth all over the country we can expect bright future in terms of quality of future players. Most of the clubs have different category of age groups starting from age 6 and they provide elite youth training programs to each category.

Clubs that choose not to take part in the war to purchase in high level player talent can in any case despite everything decide to invest into building up an aggregate squad mentality, where colleagues figure out how to foresee the activities of others, and accordingly integrate and arrange their joint efforts all the more effectively, in a “B talent, experienced” model, (Sasson,2013) A LYGA clubs follow the Business Model 1that is inexperienced B talent model. They search for talents in external market and also invest in their youth to combine the youth and experience. The external players will take to time to adapt and have team unity and experience. So average talented and inexperienced squad will take time to make results and hence the spectators are not attracted by the result and also style of the game which will cause the revenue income while assessing at the end of season. Second division clubs use B talent experienced model in which they give importance to youth and they try to build good team experience and combination. Since they give chance to youth and local players fans will be happy even if they don’t give result at first stage. Later when they start winning it will be a huge boost and the clubs earn profit from sale of players with not much investment. Government and Local authorities: Personal income tax department has introduced 1.2% of the tax of the fans can be contributed to the club as support. The fans just need to fill up the form and submit before july 1 every year. Most of the first league clubs are independent so the local authority has less influence on them apart from stadiums owned by municipalities. Most of the second league clubs are public institutions so the municipalities have influence in certain decision making process. At the last, we know football clubs plays an important role in the society. Players are role model for the supporters and football clubs influence the social behavior towards them. Among first and second league football clubs in Lithuania, first league clubs give high importance to the rules and regulations, compliance, misbehaviors, sponsors image and employees satisfaction where as second league football clubs gives high importance to the sponsors image, prices and place of the event. First league clubs pays salary to all of the players where as in second league not all players get salaries. Youth program helps the football clubs to develop players for future both first and second league have youth program. Fisrt league clubs have long term and short term plan for the youth, they try to watch off field behavior of the youth, you families doesn’t influence their decision, Second league club as compared with fisrt league give less impotance to these parameters, also to the evaluation and result of the program.

Second league football clubs gives more importance to the supporters and they have supporters groups and allow them to share their views as well as they consider paid audience as their supporters where as first league clubs doesn’t have supporters group. First and Second league football clubs gives same opinion about government and local authorities, second leagues clubs lacks financial contribution from the government and local authorities differences in their opinion. First and Second league football clubs gives same opinion very important about their media relationship, second leagues clubs gives more importance to the media content and get spcial support from their media partners. First and Second league football clubs gives different opinion about their relationship with organizing bodies, second leagues clubs gives more importance to the organizing bodies as compared to the first league clubs, in terms of position of Lithuanian federation in first and second league teams get special support from organizing bodies. First and Second league football clubs gives different opinion about their marketing strategies, second leagues clubs gives more importance to offer special packages and follow 4P’s principle to for marketing as compared to the first league. First and Second league football clubs gives different opinion about their arena/ stadium specific parameters. Second league clubs create special packages and offer their areas for promotion to the sports companies as compared to the first league clubs.

CONCLUSION

1. Business model is been described in different ways by many authors. Majorly a business model is a outline of the current business which explains the company’s mission and vision. A proper business model reflects the actions the of company to achieve their goals using various strategies. Business model is the overview of the company’s functional infrastructure. 2. A business model is useful in terms of managing the marketing strategies, sustaining the core ideas, raising finanaical values and arranging the stakeholders. Components of the business model among the football business (clubs and associations) are the structure of sources of salary (media, globalization, exchange, companies, capital, fans and players) and the use structure (contenders, group of interest, providers and infrastructure). 3. All football clubs become a threat to one another. The football business is developing to an ever-increasing extent, so clubs are contending hard to become champions furthermore, add to their revenue. Football clubs put resources into being the best in the season and to surpass their opponents and create strategy likewise. Football clubs with quality youth institutes assume a part of providers in the football market. By utilizing the principle assets of football clubs to be deciding and creating likely players, they get an edge over the other clubs. In the football business clubs can build up their own business models by their own core values while doing key investigation or foresee threats ahead of time and act appropriately. All business model in football clubs revolves around clubs’s core values, vision, goals, target groups, their spectators, engaging fans, sponsors, media, youth programs, development of the youth talent, investments, fundings from the institutions, marketing strategies and current infrastructure. 4. Present business model used by football clubs playing in the first league is a strong business model but still lacking to utilise 4 P principle and their supporters ans sponsor engagement. Present business model used by football clubs playing in the second league is a progressive business model which probably will help them to raise their funds and value. They are strong in their supporters engagement and relationship with the organizing bodies but still lacking the evaluation of youth programs and developing and implementing elite programs regularly. The present business model used by football clubs

47 playing in the first and second league has many differences in terms of marketing strategies, supporters engagement program and youth program.

RECOMMENDATIONS

• First league football clubs should start focusing on to engage their supporters by creating a fan clubs and arranging acitivities to engage them during match days. They should intract more with organizing bodies to educate themselves regarding latest updates. • Second league football clubs should focus on the youth program to generate talent for the future, also they should pay attention to the evaluation and results of the program frequently. • Second league clubs should contact the local small scale business for the sponsorship. • Incase of Stadium development and facilities both the first league and second league clubs should submit new proposal to the government and local authorities. The proposal should explain the importance of facilities and infrastructure and how these facilities can convert into profit for both the club and the government in future. • First league clubs need to attract more sponsors to the club by organizing activities to engage sponsors. • First league clubs should be involved in more socially responsible activities to involve more into the community and should make them feel the club as part of the community and should work as a joint venture in dealing with social issues and hence the club can turn the community into spectators and later into loyal fans. • First league and second league clubs should discuss with Lithuanian Football Fedration about the development of the leagues and clubs themselves and should have vision for future. • First league clubs should start to follow business model 3 typology,appreciate the mix of A-class talent and elevated levels of amassed shared team experience, should field amazing teams that perform adequately and win regularly: such teams should be exceptionally appealing to customers, so we can anticipate A talent, experienced firms to be high in value creation. Clubs following Type 3 A talent, high shared team experience business model will produce high value creation, estimated as focuses toward the finish of the season, and high value appropriation, estimated as profit for sales. • Future researchers must focus on the commercial aspects of football clubs in Lithuania, specially long term studies to evaluate marketing strategies of football clubs.

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APPENDICES

ANNEX. 1 INFORMED CONSENT FORM

I have received oral and written information about the research. I have read and understood the information presented: research aims, research methods, research benefits, and the potential harm. I had the opportunity to ask and get answers to the questions related to this research. I have been informed that my participation is voluntary and I have the right to terminate participation at any time. I know that all information concerning me will be analysed and stored confidentially, without any identifiable information. I have received a copy of the Subject Information Form.

I agree to be applied Master’s Thesis research conducted by ......

______

Participant’s name, surname, signature Date

______

Participant’s father’s/ carer’s name, surname, signature Date

(If the participant is a child)

______

Participant’s mother’s/ carer’s name, surname, signature Date

(If the participant is a child)

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Investigator’s name, surname, signature Date

ANNEX. 2

Questionnaire

I am Salman Farris Kalathil Puthiyapurayil, Master studentof Tourism and sports management program in Lithuanian sports University, Kaunas,Lithuania. I am writing my master thesis on the topic of “Aspects of business model evaluation in lithuanian football club”. The main aim of this study is to evaluate the existing business model in the Lithuanian football club playing in the first and second division.identify.Tofullfil the requirement of master thesis I created a questionnaire to collect the data from the football clubs. It would take 10 minutes to answer this questionnaire. I chose You to answer these questions because of Your ability, eligibility, professionality that allow to give the answer to below mentioned questions.This will help the football clubs to make improvements to the existing busniess areas and prioritize new features for soceity, players and specially youth. All the collected data will be confidential, used only for research purposes and information of the participants will not be disclosed.

Name (optional): Age (optional): Gender (optional): Which club do you belong to : Your position position in the club: Target groups (Stakeholders) 1. What target groups do you consider important to your club? Please rate on a 5-point scale, where 1 means "not imprortant at all" and 5 means "dete" on each line 1 2 3 4 5 Not It doesn't Neither Important Very important matter important nor important at all unimportant Participants Spectators Governing bodies Finanical stakeholders Community

2. How does your club take responsibility in the society? Please rate on a 5-point scale, where 1 means "values the least" and 5 means "values the most" on each line.

1 2 3 4 5 Valuess the Values the least most Maintainence of sports rules and regulations Compliance and penalty system Policies to avoid off field misconduct by the club officials Regularity in sports program Price &place of event Image of Sponsors organization logo, trademark Publicity, promotion, presentation, and availability of tickets Employees staisfaction Addressing social & cultural issues Working hours Other (pleasespecify)

Employees – Players and youths 3. Do your players get a salary from the club? • Yes • No - If no, is it just something they do on their spare time? • Yes • No • Other reasons please specify____

4. Does following parameters have influence on the sports club?

1 2 3 4 5 No It doesn't Neither have Have High influence at matter influence nor Influence influence all uninfluence Players influence during signing the contract Influence of key players image Community

5. Do you sometimes “protect” certain key-players/talents by adding special terms/clauses in their contracts which prevents them from going to a competitor? • Yes • No • Not sure Youths 6. Do you have a daily direct contact with the youths of the club? • Yes • No 7. Do you have a youth program/Youth team in the club? • Yes • No - If no, go to question 9.

8. What parameters are important is these youth programme in your club? 1 2 3 4 5 Not It doesn't Neither Important Very important matter important nor important at all unimportant

Long term and short term plans according to Youths interest Aim to practice elite sports for youths Utilizing spare time of youth Special sports motivational program for youth Youth off -field behavio r Achieving good grades in school to participate in youth program Evaluation & result of the program Youth families Youth background (rural , urban, race, appearance, financial status) Special support to the parents to pay program membership fee

9. If you do not have a youth team/function then: what is the most important thing for the club in short/long term?

Supporters 10. Evaluate the supporters:

Yes No May be Do you have any organized supporter groups : Do you have audiance that pay for entrance Do you consider your paid audianc eas supporters for the club Do these supporters have insight in the club regarding player signings Can they influecne the players buy/sell Does supporters can put pressure on the club regarding certain decisions that affects the club (new arena, management recruitment, events) Have you experienced pressure from the supporters when the team performance is bad Does club have meetings with supporters to share thougthts on players signings, ticket prices, violence during matches Do you have any cooperation with official supporter club

Governmental and local authorities

11. Evaluate the governmental and local authorities:

Yes No May be Does Lithuania contribute with money to the club : Do you feel that club need support from the government (New arena, administration, maintenance of the arena/ ground) Do you experience interference of local authorities into the club in daily operations Do you think local authorities are influencial in the club management decisions Can they influecne the players buy/sell Does supporters can put pressure on the club regarding certain decisions that affects the club (new arena, management recruitment, events) Have you experienced pressure from the supporters when the team performance is bad Does club have meetings with supporters to share thougthts on players signings, ticket prices, violence during matches Do you have any cooperation with official supporter club

Media 12. Evaluate the importance of media in your club: 1 2 3 4 5 Not It doesn't Neither Important Very important matter important nor important at all unimportant Good relationship with the media Role of media in your club Positive highlights in media Media critics Managing the content for media Special support from certain media partners

Organizing bodies 59

13. Evaluate the importance of organizing bodies in your club: 1 2 3 4 5 Not It doesn't Neither Important Very important matter important nor important at all unimportant Relationship with the Lithuanian football federation Communication with the Lithuanian football federation Position of Lithuanai football federation in your club Rules and regualtions of Lithuanian football federation for the club

Marketing strategies/activities 14. Evaluate the marketing strategies/activities of your club: 1 2 3 4 5 strongly Disagree Neither Agree Strongly disagreet agree nor agreet disagree Our marketing stretegies revolves around 4 P principle (Product, price, place, promotion,) We create packages to sell our matches as product (family entertainment, family events, business packages ) We offer special pricies during holidays/ to our members, associated compnies/ individuals/ We raise the ticket prices during the good performance of the team We reduces the ticket prices during the bad performance of the team We take care about the location of the matches, stadium choices, cleaning of the area, scoring and replay display We highly focus on publicity, promotion, presentation, and availability of tickets

We focus on educating and communicating our customers We offer special incentives, commisions to sell more tickets We give high importance to public relations such as media coverage, newspapers, televisions We offer special packages to sports brand companies to raise sponship income We use players profile as promotional tool We provide special passes to our sponsors to build long term relationship We offer special places to sports brand companies during matches for their employees/ their family members

Arena/ stadium specific 15. Evaluate the arena/ stadium of your club:

1 2 3 4 5 strongly Disagree Neither Agree Strongly disagreet agree nor agreet disagree Our arena offers other activies also to raise funds such as conference rroms, pubs, office, guided tours We create spacial packages to sell tickets for matches occuring in our arena/ statdium We offer special pricies during holidays/ to our members, associated compnies/ individuals/ to our arena/ stadium We invite mobile restaturants, pubs to attarct people who doesnot like to watch matches but like to

61 enjoy the evening with their friends We provide stalls for souvenir shop, kiosk during the matches to raise income We give our arena/ stadium for conference/ other public events to raise funds during non-match day

Thank you for your answers

ANNEX. 3

ANNEX. 4