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Shadow Hybridity and the Institutional Logic of Professional Sport : Perpetuating a Sporting Business in Times of Rapid Social and Economic Change

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Shadow Hybridity and the Institutional Logic of Professional Sport : Perpetuating a Sporting Business in Times of Rapid Social and Economic Change This is a repository copy of Shadow Hybridity and the Institutional Logic of professional sport : Perpetuating a sporting business in times of rapid social and economic change. White Rose Research Online URL for this paper: https://eprints.whiterose.ac.uk/127802/ Version: Accepted Version Article: Gillett, Alex Giles orcid.org/0000-0001-7965-2404 and Tennent, Kevin Daniel orcid.org/0000-0003-1952-5969 (2018) Shadow Hybridity and the Institutional Logic of professional sport : Perpetuating a sporting business in times of rapid social and economic change. Journal of Management History. pp. 228-259. ISSN 1751-1348 https://doi.org/10.1108/JMH-11-2017-0060 Reuse Items deposited in White Rose Research Online are protected by copyright, with all rights reserved unless indicated otherwise. They may be downloaded and/or printed for private study, or other acts as permitted by national copyright laws. The publisher or other rights holders may allow further reproduction and re-use of the full text version. This is indicated by the licence information on the White Rose Research Online record for the item. Takedown If you consider content in White Rose Research Online to be in breach of UK law, please notify us by emailing [email protected] including the URL of the record and the reason for the withdrawal request. [email protected] https://eprints.whiterose.ac.uk/ Journal of Management History Journal of Management History Shadow Hybridity and the Institutional Logic of professional sport: Perpetuating a sporting business in times of rapid social and economic change Journal: Journal of Management History Manuscript ID JMH-11-2017-0060 Manuscript Type: Research Paper Public sector intervention, Cross-sector collaboration, Institutional logic, Keywords: Hybrid organizations, Professional Sport http://mc.manuscriptcentral.com/jmh Page 1 of 68 Journal of Management History 1 2 3 Shadow Hybridity and the Institutional Logic of professional sport: Perpetuating a 4 5 6 sporting business in times of rapid social and economic change. 7 8 9 Purpose:Journal Existing studies of of the Management finance of English Association Footba Historyll (soccer) have tended to 10 11 focus on the sport‘s early years, or on the post-199 Premiership era. We examine a case from 12 13 the turbulent 1980s charting the struggle for economic survival of one club in a rapidly changing 14 15 16 financial, economic, political, and demographic landscape. 17 18 19 Design/methodology/approach: We investigate the financial difficulties of a sport business, 20 21 Middlesbrough Football and Athletic Company Limited (MFAC), examining the broader 22 23 economic context, drawing on unseen archival sources dating from the 1980s to analyse the 24 25 26 relationship between club, local and national government, and the regional economy. 27 28 29 Findings: We examine not only the financial management of the football club but also analyse 30 31 the interventionist role of the local authority in supporting the club which had symbolic value for 32 33 the local community. 34 35 36 37 Practical implications: This paper is relevant to policy ma,ers interested in the provision of 38 39 local sports facilities and the lin,s between elite sport and participation. 40 41 42 riginality/value: We show that professional sports clubs are driven by a different institutional 43 44 logic to state organisations and our findings enable us to define these differences, thereby 45 46 47 refining Thornton et al‘s ( 01 ) typology of institutional orders. Furthermore our case study 48 49 highlights practices involving informal partnership between state and sport that we label shadow 50 51 hybridity. 52 53 54 55 56 57 58 1 59 60 http://mc.manuscriptcentral.com/jmh Journal of Management History Page 2 of 68 1 2 3 Keywords 4 5 6 Public sector intervention, cross-sector collaboration, institutional logic, hybrid organi-ations, 7 8 9 professionalJournal sport of Management History 10 11 12 13 14 15 INTR DUCTI N 16 17 18 .esearch on hybrid organi-ations has hitherto focused on social enterprise, government and their 19 20 relationships with the private and voluntary sectors (Mullins et. al, 01 / 0attilana and Lee, 21 22 23 011/ 2oherty et. al, 011/ Santos, et. al, 015/ 5illett et. al, 016). This paper postulates that 24 25 partnerships between government bodies and professional sporting clubs re7uire a reassessment 26 27 of extant hybridity theory. This is because professional sporting clubs have their own 28 29 30 institutional logic that affects the dynamic of the relationship in ways that are different to other 31 32 institutional orders, which are summari-ed by Thornton et. al ( 01 ) as family, community, 33 34 religion, state, mar,et, profession, and corporation. 35 36 37 Amongst professional sport, association football provides an interesting context because 38 39 40 there have been many instances of clubs facing financial difficulty, and local authorities have 41 42 often responded to assist. The extent to which local authority intervention can or should occur is 43 44 debateable and little is ,nown about how such partnerships manifest and operate. We show that 45 46 47 professional sports clubs are driven by a different institutional logic to state organisations and 48 49 our findings enable us to define these differences, thereby refining Thornton et al‘s ( 01 ) 50 51 typology of institutional orders. Furthermore our case study highlights practices involving 52 53 informal partnership between state and sport that we label shadow hybridity. These practices 54 55 56 enable the organisations to wor, in an informal but functional partnership when attempts to 57 58 2 59 60 http://mc.manuscriptcentral.com/jmh Page 3 of 68 Journal of Management History 1 2 3 establish a formal partnership were unsuccessful. Therefore shadow hybridity can be a way to 4 5 6 circumnavigate what S,elcher and .athgeb Smith ( 015, p. 110) refer to as 8bloc,ed hybridity‘ 7 8 (the dysfunction arising from inability to resolve competing logics). 9 Journal of Management History 10 11 Whereas much published literature relating to association football has focussed on the 12 13 sport before the Second World War or on developments since the introduction of the Premier 14 15 16 League (Taylor, 013/ Tennent and 5illett, 016), the focus of our paper is on the 1980s, an 17 18 important but overloo,ed period in the sport‘s history. We use unpublished archival data relating 19 20 to Middlesbrough Football : Athletic Company (the legal entity behind Middlesbrough Football 21 22 23 Club, referred to hereafter as MFAC) and its relationship with local authorities at a time of 24 25 significant change when club and geographic region faced financial difficulties. 5overnance and 26 27 the political and economic environments are examined at the local rather than national level, 28 29 although important national developments are also included. We contextualise the case in the 30 31 32 declining economic context of Teesside, north-east England, drawing parallels with the 33 34 simultaneous diminishing performance and finances of the football club. 35 36 37 We emphasise and explain how the local authority was an important sta,eholder for 38 39 football clubs. Our findings should be of relevance to contemporary local authorities and leisure 40 41 42 providers, providing insight regarding the pitfalls of involvement with sports clubs, 43 44 considerations for business and mar,eting planning when proposing multi-use and community- 45 46 focussed leisure facilities, as well as showing some of the things that local authorities can do 8off 47 48 49 balance-sheet‘ to successfully assist their local sports clubs and communities, whilst operating 50 51 within the constraints to which they must adhere. Examples can be seen in North American sport 52 53 and in higher-profile global sporting mega-events such as the Olympic 5ames, e.g. the London 54 55 56 01 Olympic Stadium, which post- 01 faced difficulties finding a subse7uent use (Zimbalist, 57 58 3 59 60 http://mc.manuscriptcentral.com/jmh Journal of Management History Page 4 of 68 1 2 3 016/ 0aade and Matheson, 001/ Hop,ins, 010/ The Guardian, 016). Walters and Chadwic, 4 5 6 ( 009) point to the role of community trusts as a ,ey strategy in galvanising the relationship 7 8 between football clubs and local authorities, identifying this is important because local 9 Journal of Management History 10 authorities have a gate,eeper role in planning and safety regulation. Such relationships 11 12 involving organi-ations from different sectors re7uire careful consideration because of the 13 14 15 different priorities of each organi-ation stemming from its primary function. We now explain 16 17 this with reference to hybridity theory. 18 19 20 21 22 23 H()RID ORGANI,ATI NS 24 25 26 There are several ways to theori-e the operation of organi-ations with social as well as financial 27 28 29 objectives, including sta,eholder, institutional, organi-ational identity, and paradox approaches 30 31 (2acin et al. 2011/ Smith et al. 2013/ Wilson and Post 2013). In this paper we are concerned 32 33 with extending theories of institutional order and hybrid types because they offer the most 34 35 36 comprehensive explanation of cross-sector collaboration, and yet do not sufficiently encapsulate 37 38 the factors which characterise the type of limited companies that were originally established to 39 40 own professional sports clubs in the UB. 41 42 43 Analysing our case through the lenses of institutional and hybridity theories helps us to 44 45 46 better understand collaboration between government and professional sports clubs, specifically 47 48 the reasons why and how they might attempt to wor, together for win-win outcomes (for 49 50 example whether complimentary purposes can co-exist, and how they can manage around their 51 52 53 differences for mutual benefit).
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