Increased revenues as the key for long-term success in Allsvenskan

Abstract

Background and research problem: Football is the most popular sport in the world and is influenced by stakeholders with different perspectives and interests. The problems with sporting and financial results are a much-debated issue in Sweden at the moment because the majority of all clubs in Allsvenskan have suffered a severe operational loss, which is becoming a serious threat to their existence. The sporting results have also got worse and Allsvenskan is rapidly falling on the UEFAranking. To change this negative trend, an increase in revenues among the Swedish clubs is necessary and this thesis will examine how this increase could be realised. Purpose: The purpose of this thesis is to identify the structure of revenues in the clubs in Allsvenskan today and what sources of revenues that have the best potential to increase. It will also be examined if the increase in revenues is the solution to reach the long-term goal that Allsvenskan shall be ranked amongst the top 15 leagues in Europe in 2020. Delimitations: This thesis treats Swedish football clubs in the premier division. Five clubs have been interviewed by which four are now playing in Allsvenskan and one has been relegated. Only male clubs are being examined and the focus lies on generation of revenues. Some comparisons are drawn with other leagues, in order to give the readers a better understanding of what others have done in order to reach a successful concept. Method: This thesis is based on primary data from seven qualitative interviews which have been analysed and compared with existing theories about generation of revenues in order to find a connection and possibilities of improvement. Results and conclusions: 52 per cent of the revenues in 2010 were assignable to advertising/sponsorship and match day revenues. Most of the revenues can somehow be assigned to the stadium and that is where the greatest potential of an increase in revenues lies. The solution is not the actual ownership of the stadium, but to obtain the rights for sales and advertisement at the stadium. The clubs should focus on increasing the revenues they are able to improve, based on their own conditions. In order to do the climb on the UEFA-ranking, increased revenues are essential and a change in the structure of how contributions are distributed would be favourable. However, that would result in a different type of league where a few clubs would be in top on a regular basis and there is a big disunity among the clubs whether this is worth aiming at. Further studies: The following issues would be interesting for further studies because they are also much debated at the moment and fairly unexplored: -­‐ How are the costs distributed in the football clubs in Allsvenskan and what costs have the least connection to sporting success and can be reduced? -­‐ Do revenues have a correlation with sporting success in other sports around the world? -­‐ How would a change in taxation legislation affect football in Sweden and player salaries? -­‐ How would a change in legislation concerning integrity and public control affect football and hooliganism?