Evaluation of Components of Business Model in Lithuanian Football Clubs
Total Page：16
File Type：pdf, Size：1020Kb
LITHUANIAN SPORTS UNIVERSITY TOURISM AND SPORTS MANAGEMENT STUDY PROGRAM SALMAN FARRIS KALATHIL PUTHIYAPURAYIL /signature/ EVALUATION OF COMPONENTS OF BUSINESS MODEL IN LITHUANIAN FOOTBALL CLUBS FINAL MASTER ‘S THESIS Scientific Supervisor: Assoc. Prof. Dr. R. Mikalauskas/signature Final thesis Supervisor recommends/ does not recommend the final thesis be assessed Evaluation of the final thesis: in grade and words Secretary of the Assessment Committee: N. Surname/ signature KAUNAS 2020 CONFIRMATION OF INDEPENDENT COMPOSITION OF THE THESIS I hereby declare, that the present final Master’s thesis– EVALUATION OF COMPONENTS OF BUSINESS MODEL IN LITHUANIAN FOOTBALL CLUBS 1.Has been carried out by myself; 2.Has not been used in any other university in Lithuania or abroad; 3.Have not used any references not indicated in the paper and the list of references is complete. (Date) (Author’s name and surname) (Signature) CONFIRMATION OF LIABILITY FOR THE REGULARITY OF ENGLISH LANGUAGE I hereby confirm the correctness of the English language used in the final thesis. (Date) (Author ‘s name and surname) (Signature) FINAL MASTER’S THESIS SUPERVISOR’S ASSESSMENT (Date) (Supervisor ‘s name, surname) (Signature) Reviewer of the final thesis: (Name, surname) (Study Administrator, name, surname) (Signature) Reviewer of the final thesis: (Name, surname) (Study Administrator, name, surname) (Signature) Final thesis supervisor: (Name, surname) (Study Administrator, name, surname) (Signature) Final Master’s thesis has been placed in ETD IS ................................................................................................... (Study Administrator, name, surname, signature) 2 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 3 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. 4 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. 5 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