The new football business: a challenge for elite followers. -A case study for IFK Göteborg-

Abstract

A decade ago, as the 1990's opened, many small tentative steps were ventured into the new (at that time) business age. Which of football's leaders could then have foreseen the sheer scale and speed of football's economic revolution? Associated industries such as media, sportswear, advertising, and so forth have seen football as an attractive business and thus many off-the-field developments have speeded up its expansion.

On the other hand, some sensible and regulative issues are threatening the traditional structure of European football. The change in the international transfer system, the continuous threat of a Super League, the discussion about regional leagues and the supremacy of UEFA as the single governing body are important matters that have to be handled carefully.

The situation has become almost dramatic at the European level. Most of the participants are now swept along, whereas very few can claim to be in control. To have a chance within an era of stock market flotation, corporate takeovers and digital television, it is needed a defined strategy, a clear focus, top class people, financial resources and some luck!

In this thesis we analyse how football is changing nowadays and which forces are pushing the industry to another direction at the clubs' level. The question here is to see to what extent the `golden era' for football with colossal sums of money entering the game through TV deals, sponsorship contracts, etc. - is turned into a situation where the football authorities put things back on an even keel. The particularities of football as a sport of masses and passions make it a very special business, where pure business strategies have to be combined together with social, cultural and educational issues totally intrinsic into the game.

Those competitors taking part in UEFA competitions must look for profitable opportunities, where they can perform and increase their appeal among fans. Thus, the UEFA Champions League, as the most lucrative and prestigious European competition must be the target market for those `small' clubs outside the football elite.

This study regards business strategy as mandatory for the survival of non-elite clubs in European competitions. We dearly hope to see investment in youth development, stadia & facilities, skilled business managers, the marketing and commercial infrastructure and brand development that will secure revenues for many years to come, community and fan base programmes, etc. But we worry that the lack of both support from the EU to the UEFA and powerful recognition of the specific nature of sport might drive the industry to a paradise just for the elite, where individual interests overwhelm the traditional football economics (competitive balance, solidarity mechanism, input allocation, etc.).