Abstract
This research paper discusses the economic paradigms in international football. Investment psychology is a highly relevant concept in the sports economy. As such, the economics of professional football is characterized by irrational and ‘con amor’ investment behavior and how this produces market inefficiencies. This is also highlighted by the fact that money is important, but yet activated by the human factor and not by mechanical behavior. The latter refers to how human on- and off-pitch behavior leads the way in producing the core product of 90+ minutes on-pitch football.
Although, money is vital when investing in talent on the pitch, contextual understanding from sporting and commercial perspectives coupled with strategic and cultural consciousness can guide investors from a) purely ‘betting’ inaccurately on talent to b) applying sophisticated investment models based on game intelligence and analytical know-how to battle the production inefficiencies in football.
In doing so, the football clubs will gain tools to solve the internal and external complexity in football. The internal complexity can be product-based complexity related to the question of whether the product offerings from the club are contemporary. It can also be illustrated in the form of organizational complexity such as tension between the upper management of the club and its players or fans (e.g., as illustrated when Liverpool FC’s ownership was associated to Hicks and Gillett). A third example is the production complexity in relation to how production inefficiencies in the development of fully fledged elite players influence the club. In contrast, the external complexity is related to demands from external stakeholders such as competitive forces in relation to how football competes with all the offerings competing for people’s time and money. It may also refer to institutional collaborative efforts with schools and similar stakeholders. Market forces such as the technological development and how a club can utilize the data-driven opportunities, which create a better foundation for gamified training options (Cortsen & Rascher, 2021) is also part of the external complexity.
All these elements put requirements on a football club’s adaptability, innovative capabilities, and readiness for change. So, with these requirements come the need for differentiated managerial and leadership actions, which leads to diverging demands for money, human capital, and other resources
(Cortsen, Hird & Kvistgaard, 2020).
With some of these perspectives and the popularity of global football in mind, the abnormal situation (also highly influenced by the global COVID-19 pandemic) in the global football industry has intensified the focus on investing in football from private equity firms and other investments groups.
Although, money is vital when investing in talent on the pitch, contextual understanding from sporting and commercial perspectives coupled with strategic and cultural consciousness can guide investors from a) purely ‘betting’ inaccurately on talent to b) applying sophisticated investment models based on game intelligence and analytical know-how to battle the production inefficiencies in football.
In doing so, the football clubs will gain tools to solve the internal and external complexity in football. The internal complexity can be product-based complexity related to the question of whether the product offerings from the club are contemporary. It can also be illustrated in the form of organizational complexity such as tension between the upper management of the club and its players or fans (e.g., as illustrated when Liverpool FC’s ownership was associated to Hicks and Gillett). A third example is the production complexity in relation to how production inefficiencies in the development of fully fledged elite players influence the club. In contrast, the external complexity is related to demands from external stakeholders such as competitive forces in relation to how football competes with all the offerings competing for people’s time and money. It may also refer to institutional collaborative efforts with schools and similar stakeholders. Market forces such as the technological development and how a club can utilize the data-driven opportunities, which create a better foundation for gamified training options (Cortsen & Rascher, 2021) is also part of the external complexity.
All these elements put requirements on a football club’s adaptability, innovative capabilities, and readiness for change. So, with these requirements come the need for differentiated managerial and leadership actions, which leads to diverging demands for money, human capital, and other resources
(Cortsen, Hird & Kvistgaard, 2020).
With some of these perspectives and the popularity of global football in mind, the abnormal situation (also highly influenced by the global COVID-19 pandemic) in the global football industry has intensified the focus on investing in football from private equity firms and other investments groups.
Originalsprog | Engelsk |
---|---|
Publikationsdato | 23 mar. 2021 |
Udgivelsessted | Barcelona |
Udgiver | Four Nations Football Consulting |
Antal sider | 20 |
Status | Udgivet - 23 mar. 2021 |
Emneord
- Erhvervsliv, handel og økonomi