Howzat? The Financial Health of English Cricket: Not Out, Yet

In 1997 a review of the financial health of English county cricket highlighted strategic weaknesses within the professional game, principally an over-reliance by clubs on the annual grants provided to them by the England and Wales Cricket Board (ECB). Without such grants the teams, in general terms, would be insolvent. Using the financial statements of the First Class Cricket Counties, this paper explores how the financial position and performance of the county game has changed, 20 years on from the seminal study. A series of structural changes to the game had been made, yet financial problems are still evident. Counties are as reliant on central grant income as they were in 1997, although there are cases where clubs have made strategic enhancements and are becoming self-sustainable as going concerns. Rather than the ECB directly funding county revenue it should be working in collaboration with individual clubs to achieve developments in the game from the grassroots upwards, in order to help clubs grow their own revenue streams.</jats:p

Different shaped ball, same financial problems? A holistic performance assessment of English Rugby Union (2006-2015)

Purpose: Rugby union’s late move to professionalism in 1995 has led to concerns about the financial development of the game. The purpose of this paper was to extend the knowledge base on professional team sports in the UK by analysing the financial and sporting performance of rugby union clubs. Design/methodology/approach: Data was obtained by dissecting the annual accounts of 9 English Premiership rugby clubs between 2006 and 2015. Analysis was performed using the Performance Assessment Model (PAM), which analyses both financial and sporting areas of performance and is devised through statistical analysis procedures to provide a holistic measure of overall performance for each club. Findings: There is financial disparity amongst clubs that has widened over the period of the study. In terms of sporting performance, the data suggests that competition is more equal, something that is less evident in other UK professional team sports such as football and rugby league. Correlation analysis reveals that overall performance varies over time in cycles. Research limitations/implications: The study has implications for the clubs competing in the English Premiership and for the league organisers themselves, particularly with reference to regulatory procedures such as raising the salary cap and increased broadcasting deals. Practical implications: Social implications: Originality/value: Our paper has demonstrated the importance of balancing multiple performance objectives in professional team sports and has expanded the academic discussion on the financial health of professional team sports in the UK, particularly with reference to the financial health of rugby union where research has historically been scarce

The UEFA Champions League: maintaining the status quo?

Purpose - The purpose of the paper was to examine the competitive balance of the UEFA Champions League group stages. There are numerous financial and commercial benefits to clubs that participate in this competition. The current paper examines if the seeding system operated by UEFA is hindering some lower ranked teams from qualification and thus the associated benefits. Design/Methodology/Approach - Data was collected for all UEFA Champions League group stages between1999/2000 and 2013/2014. Data analysis techniques included Herfindahl-Hirschman Index (HHI) to examine competitive balance and one way ANOVAs to examine the impact of the current seeding system on club performance. Findings - The findings suggest that there are flaws in the ranking and seeding system used by UEFA as results show that the competition is competitively imbalanced at the group stage. Additionally, clubs that are continually placed in the highest seeding pot historically tend to accumulate more points and finish in a higher position in the group thus giving them a better opportunity to progress further in the competition. Research Limitations/Implications - The study has implications for both the clubs competing in the Champions League, who will be affected by the seeding system and UEFA themselves when considering the sporting integrity of their flagship competition. Originality/Value - To our knowledge this is the first paper of its kind to examine competitive balance in this competition and the paper contributes new knowledge that extends the research undertaken in the field previously.</p

A holistic performance assessment of English Premier League football clubs 1992-2013

This paper devises and tests a statistical model (the PAM) to measure the financial and sporting performance of professional football clubs. The PAM has been applied to a longitudinal data set of English football clubs (21 clubs between 1992-2013) to identify trends in performance. The results show that a small number of clubs have created an imbalance within English football and that there has been evidence of a 'financial crisis' at individual clubs. For the majority of clubs, overall performance appears to vary over time in cycles. In addition to measuring holistic performance of professional football clubs in England, the paper has developed a statistically robust model that progresses research in the field. This new model has the potential to be adapted to fit other professional team sports to test league viability. It can also be used by the clubs themselves to set objectives and to analyse performance against competitors

Mind the gap: an analysis of competitive balance in the English football league system

Competitive balance of league competitions is an important component of sport economics. Evidence suggests that a less attractive product might struggle to command a high market value. Thus, it is imperative that sport leagues remain competitively balanced with a degree of uncertainty of outcome. This paper analyses competitive balance within the English football league system since the inception of the English Premier League (EPL) in 1992. It examines variations in overall competitive balance within and between the EPL and the three divisions that make up the Football League. Competition for the title, promotion and relegation is also analysed. The results indicate a reduction in competitive balance in the EPL over time and that the EPL is less balanced overall relative to the Football League, which is partly influenced by the higher financial disparity between teams in the EPL. Nonetheless, fan interest in the EPL and the value of broadcasting deals do not appear to be negatively influenced

Does size matter? An investigation of competitive balance in the English Premier League under different league sizes.

Purpose This paper aims to explore at what league size competitive balance reaches its best level through a longitudinal study and using the English Premier League (EPL) as an example. Design/Methodology/Approach In order to test the influence of league size on competitive balance in the EPL, we first calculated competitive balance scores for 22 seasons between 1995/96 and 2016/17 under the existing 20 team system. We then calculated a further ten normalised competitive balance scores for each EPL season by adjusting the league size to examine the league size threshold at which competitive balance in each season of the EPL was at its best level. Findings Analysis indicates that the current league structure of 20 teams compromises the overall level of competitive balance in the EPL in comparison with a league comprising between 10 and 19 teams. However, we cannot pinpoint the precise league size at which the EPL is most competitively balanced as no significant differences were observed between the competitive balance indices for these league sizes. Originality/Value The findings of this study has practical relevance for league organisers and the Union of European Football Associations (UEFA) given that they themselves have stated that competitive balance will be a big challenge for the European football industry in the coming years

Perceived corporate social responsibility performance in professional football and its impact on fan-based patronage intentions: An example from Chinese football

Purpose This paper analyzes fans' perceptions of the CSR activities of a professional football club, specifically whether or not perceived CSR performances are then likely to influence patronage intentions of the fans in relation to the football club. Methodology The paper uses the example of a professional football club in China as a case study for data analysis. Based on a sample of 451home team fans, analysis was conducted through calculation of descriptive statistics, and exploratory factor analysis (EFA). Regression analysis was conducted to determine the impact of perceived CSR performance on fan’s patronage intentions. Findings The results revealed factor 3(“CSR to customer and employee”), and factor 4 (“Community development and youth education”) were significantly predictive of all the three patronage intention variables, i.e. repeat purchase, Word of Mouth, and merchandise consumption. In addition, factor 2 (“charity”) would also affect merchandise consumption intention, but have no effect on any other dimensions. Originality/Value A scale measuring perceived CSR performance in professional football clubs by the fans in the Chinese context has been developed. In addition, we have identified that the two main CSR factors that would influence fans’ patronage intentions, i.e. "CSR to the customer and employee" and "community development and youth education". Thus, if football clubs are to use CSR strategically to leverage spend then it is these two areas that they should focus on explicitly in relation to CSR activities. This paper adds value to an area that is currently under-researched in respect of CSR activities in Chinese professional football

Alternative approaches to financial and sporting performance measurement in English professional football

The purpose of this thesis is to combine, in a new way, variables of financial performance and sporting performance in professional football clubs to provide a new measure of overall performance. Previous literature on the topic indicates that the choice of variables used to measure sporting and financial performance has been haphazard and inconsistent. Subsequently, this thesis devises and tests a model that provides a new holistic measure of overall performance and can be used to evaluate the performance of professional football clubs in England. The model was produced using statistical analysis techniques to ensure that the correct variables were included and weighting factors on each variable added a further robustness to the model. The model is also timely in relation to new regulations throughout the European game such as Financial Fair Play which aims to alleviate the debt problem across professional football and encourage clubs to spend within their means. The thesis concluded a number of findings in relation to English professional football clubs since 1992. First, there has been a move towards utility maximisation among English clubs. Second, the foreign ownership model has led to an improvement in sporting performance and a decline in financial performance. Third, there is evidence to suggest that there has been a relationship between rising revenues and rising costs in English football during the last twenty years and that this shows no signs of abating. The central contribution to knowledge o f this thesis is the production of the model. The model highlights, for the first time, the relationship between variables. The thesis also provides a contribution to knowledge when analysing the performance o f clubs in the English football industry since the formation of the English Premier League in 1992. A further contribution is the potential application of the model to other professional team leagues and sports both in the UK and overseas. Such a model can be used by professional sports clubs, academics and practitioners alike to ascertain how a given club is performing in relation to its closest competitors. The model can also be used by governing bodies to inform and implement changes at policy level. Furthermore, the model and its uses are not exclusively limited to the UK given the Eurocentric nature of the work