Institutional Change in an Age of Internationalization: Globalization and the Soccer Club A dissertation submitted to the Graduate School of the University of Cincinnati in partial fulfillment of the requirements for the degree of Doctor of Philosophy in the Department of Political Science of the College of Arts and Sciences by Tiest M. Sondaal B.A., International Affairs, Xavier University M.A., Political Science, University of Cincinnati October 2011 Committee Chair: Richard J. Harknett, Ph.D ABSTRACT This dissertation contributes to the growing literature about globalization’s impact on local institutions with a focus on the interaction between global and local forces. Specifically, the dissertation examines the two theories of glocalization and grobalization that offer contrasting explanations about the impact of globalization on local institutions. While the theory of glocalization stresses the interpenetration of the global and the local resulting in increasing hybridization, grobalization predicts that globalization overwhelms local institutions resulting in increasing homogeneity. The research reveals that while both theories tested capture to some degree institutional dynamics, they ultimately overlook the enduring power of the local. Put differently, the study finds that globalization’s effects are not pre-determined and impact local institutions differently based on the local-societal setting and the local institutional capacity to withstand unifying pressures. As a corrective, my study introduces a third conceptual frame for understanding the global-local relationship that I term ‘localism anew’, which holds that local entities can be the driving force in transforming globalization by leveraging the local in order to succeed globally – something which grobalization cannot conceive and which glocalization overlooks. The dissertation reaches this conclusion by taking a unique case study approach that examines the globally ubiquitous and significant local institution of the football club. This distinct case study bridges a gap by bringing political science into a conversation with sociology, peace studies, anthropology, gender studies and economics that have all written extensively about the connections between sports teams and processes of globalization and localism. The reason for choosing the football club as a core proxy for a local institution is because football globally constitutes more than simple entertainment. It not only moves most of the world emotionally but also provides millions globally with a strong sense of local, regional and national identity. Football clubs are important global socio-cultural, political and economic agents while also the source of intense local identity. Thus, they are firmly placed at the nexus of globalization and localism. This effort questions how these forces interact by measuring globalization’s impact on football clubs through an in-depth heuristic case study of Liverpool Football Club in England. ii iii ACKNOWLEDGEMENTS I am indebted to a long list of people and institutions for their help and support with this project. On the academic front I would like to thank my committee members whose positive energy and attention to detail were critical in getting this dissertation finished in a timely manner. My chair, Dr. Richard Harknett, deserves special praise for his continuous support and his reassuring assessment of my research. Without his encouragement to uncover the connections between globalization and football clubs, this project would not have materialized. During numerous meetings in his university office or at his home, Richard’s lucid analysis and creative thinking served as an inspiration to revisit and improve earlier sections and move forward to discover new avenues. I also cherish our conversations discussing the latest football results and transfer rumors. Dr. Thomas Moore offered expertise on the topic of globalization and provided important insights that helped strengthen the project’s theoretical underpinning. Dr. Laura Jenkins brought a fresh and thoughtful perspective to this work and helped me tackle important interdisciplinary questions. This dissertation would not have been possible without the financial support from the University of Cincinnati’s Department of Political Science and the Charles Phelps Taft Dissertation Fellowship. Their generous funding allowed me to concentrate on my research instead of on teaching classes and grading papers. It also allowed me to travel to England to collect vital field data. In the course of my fieldwork numerous individuals have supported my study. I am particularly grateful to Professors John William and Liz Crolley for their helpful advice and support during my fieldwork. I am equally grateful to Stephen Done at the Liverpool Football Club archive for responding promptly to all my inquiries. Last but not least, I would like to deeply thank all the interviewees who so generously dedicated their time to my project and shared many illuminating observations and reflections. I am also indebted to my family. I would like to thank my parents, Jos Sondaal and Emmy Simons, and my brother Joost for supporting me throughout my graduate career and offering loving encouragement and emotional support. Even though they did not always comprehend the nature of this particular project, they encouraged me to pursue my passion and provided important mental sustenance at all stages of this research. Finally, I would also like to thank various teachers who have influenced me throughout the years. I particularly would like to thank Tim White who has been a mentor to me as well as a dear friend during my time in Cincinnati. In addition, ‘Father’ Jim McCann, Mia Bloom and Joel Wolfe were important in shaping my academic career and ways of thinking about the world. Thank you all. iv TABLE OF CONTENTS ABSTRACT ii ACKNOWLEDGEMENTS iv Chapter 1: Introduction 1 Chapter 2: Just a Game? Football as an Important Institution 58 Chapter 3: The Globalization of Soccer: Practical and Theoretical Considerations 123 Chapter 4: Liverpool FC: From Local Club to Global Brand 182 Chapter 5: Conclusion: Managing Institutional Change in an Age of Internationalization 321 BIBLIOGRAPHY 356 ABBREVIATIONS 383 v Chapter One Introduction “It has been said that arguing against globalization is like arguing against the laws of gravity.” (Kofi Annan: United Nations Secretary-General) “Globalization is a policy, not an act of God.” (Jimmy Carter: U.S. President) “Globalization could be the answer to many of the world’s seemingly intractable problems. But this requires strong democratic foundations based on a political will to ensure equity and justice.” (Sharan Burrow: General Secretary of the International Trade Union Confederation) Understanding the phenomenon of globalization is not only one of those rare puzzles that garner both sustained academic attention and simultaneous dedicated policy analysis, but it is one that intrigues enough to enter the public lexicon. 1 Globalization is one of the main buzzwords of our generation and many of us experience the effects of globalization on a daily basis. We experience globalization when we access the internet to read news about a conflict abroad, make a phone call to Europe, buy an ethnic dish in a Japanese restaurant, travel to Mexico on a discount airliner, buy a piece of clothing that was produced in China, have to submit to a regulation decided at the World Bank or the International Monetary Fund, watch a foreign film at the local movie theater, or drive a German car (outside of Germany). In addition to the presumed existence of globalization,2 we are told that globalization is of increasing importance in the world today. 3 The phenomenon of globalization is related (or 1 For example, see Richard Harknett (2003) who introduced the term lethal globalization. 2 Globalization is a concept being addressed as a given in secondary schools. Students at various high schools, including Sycamore High School in Cincinnati, read New York Times ’ columnist Thomas Friedman’s book The World is Flat (2005). In it, he argues that globalization has created a level playing field for entrepreneurs across the globe, which means geography has become less important in deciding who can achieve economic success. 3 During the summer of 2008 then-Senator Barack Obama argued that the combination of “globalization and technology and automation all weaken the position of workers.” (Chozick and Davis 2008) Then-Senator Hillary Clinton discussed globalization in a May 31, 2007 speech in Silicon Valley where she discussed the “benefits that spring from globalization.” (Ignatius 2007) 1 allegedly related in some instances) to a plethora of issues, including industrial innovation, the growing mobility of capital, the growing importance of non-state actors and sub-state actors such as multinational corporations (MNCs), regions and global cities, the proliferation of intergovernmental organizations (IGOs) and nongovernmental organizations (NGOs), inequality between nations (North-South divide) and within nations (growing disparity between rich and poor), democratization (political modernization following economic modernization), growing cultural homogenization, gender inequality, and so on. Notwithstanding the popularity of its usage, the term globalization is an ambiguous one and significant variance exists in how it is used (definitions), whether or not the phenomenon represents something new, and what the impact of globalization is on the state,