Bayle, Emmanuel

François, Aurélien

Serveur académique lausannois

ffiA$ffi s ffiTHE STRATEGIC REPOSITIONING OF OLYMPIOUELYONNAIS: TOWARDS A NEW BUSINESS MODEL,CURÉUEN FRANCOIS AND EMMANUEL BAYLEorigina'y formed in 1896, oL was officiaty established in 1950. untir the end ofthe1980s it existed in the shadow of ne ,",í^g "lrl"i'Saint-Étienne, and suffe¡edin comparison with its neighbour,sMichel Aulas, a young owner of a I en over by Jean-year, oL ua " på;""iËJd"û"it of r.s _i iï,'Jr",::råi:jd, technical stafft we¡e made at the end of the 1990s that. In 1 999 Aulas opened up pa¡tCEO of the .in"rn" "orpo."tiong its second-largesi stockholderLEARNING OUTCOMESUpon completion of this case study, the reader should be able to;* define the concept of a business model for professional sports ctubs,.c identin/ the factors that reed to decision to.h"ng" " business moder over time;ã cons¡der the importance of these strategies to páfessional spory& critically assess the opportunist¡c transition of a model with an economic baseto one that is more socially based.OVERVIEW OF THE CASEThis case study focuses on the French soccer club Olymp¡que Lyonnais fOLl, whíchhai a number of features that are different from otnlr french clubs. tn France, OLis the only club listed on the stock exchange market and is the onty one to privatelyown a stadium, which is due for complet¡on in 2O16.The OL case ¡s particularty interest¡ng as several recent economic and sport¡ngfailures pushed the crub3 manageß þ rethink the¡r tradit¡onat business model. Thecornerstone of thís new strategy is that the stadium must support the model by foþlow¡ng a pattern that manifests a more social dimension-CASE STUDYf@%M2A1@%1@%OL\hyågês OLOrlani*üon5t%ìtIrlduMontdt Mádiú100%i-,:i. .Assæ¡aÍon OL OL SASi, , Srmpljfied OL Groupe organ¡zar¡on chan as of 30 J une 20I4' _./ --_t'-' l r'::'--7 '-:// --)OL Group€Thus the clubt status is now even closer to the common status reserved. fo¡ main-st¡eam businesses, which atows the ¡edistribution of profits to sha¡eholders andalso the ¡emuneration of maaagers.This shong drive towa¡ds comme¡ciaand économiã levels. on the sporting si :t""i;;winning seven championships in a ¡ow belevet, iiparticip"t"d ,eguiarly in the very competitive Champions ,""r"".'äTü:economi and so ia¡ûnancial stock was24 eurosdavs following its inr¡oduction. " ,oou åliiliÌrttumover was 211.6 miÌrion euroswith a profft of 15.6 million eu¡os, and it employed 256 people.In the mid 2000s the emerging models ofconstrucUà and private exploitationof stadiums in Europe reinforcãd Aulas, conviction to builá " ,r"* .t"ai,r* iàgenerate some extra revenue streams, and to maintain OL,s successful position.carried out for the 1998 World Cup,sidered too old and too small. In par-to the increased demand for tickets,matches can go up to 200 per cent ofûxed ¡ental charge to the city of Lyon,f¡om the stadium oth e¡ than ti "ket i o"ol::ii ;äiT í":il:,r.:îî,ii: iï:,istadium called oL Land was unve'ed. It was fi¡st int".r¿"d to build a zo,''o-seatstadium, deliverable within 5 years for a cost of 140 million eu¡os. In 2005 Aulasthen proposed a less-ambitious remodeiling ¡iro¡""t ro, the Gerrand stadium toGéra¡d Collomb, mayor of Lyon. Ho-..,u., ìhì, i"o¡"J _", quickly abandoned.The new stadium project resurfaced afte¡ the ".rrro,rrr"ì-"rrt that the 'EFA Eu¡oto France, and for which Lyon is a host citv.of such a complex was then focused on theStade des Lumières. ofûcially started on the construction of theThe stade des Lumiè¡es was designed with murtifunctionar a¡enas to ensure theability to exploit it throughout the year. Inside the o"--ol, pa¡k, which includedmany non-sporting facilities (hoters, restaurants, meeting rooms, etc.r that were com_mercialized from the outset, the new stadium rrouñi" abre to wercome s8,00074IIIIlIiIIIIIIIII'IrlfTaþle 10. I Comparison of OLFinancia-l gainTicketingSponsoring and advertisingMedia and marketing rightsBrand-related revenuesPlayer tradingNet resr¡ltGroupe qross income and nerpronyloss between 2OO7 andZOt42007-2008 2013_2014 Change277.627.820.475JO.J55.9+ 15,6720.5131956.276.216.1-26.4_43%_40%+ 7Vo-2s%- 58Vo- 7 7o/o- 269VoÁ. Fr.rrtçors. E Baytc 75O;j,¡¡!i.luLt i yo^¡1¡i\ì;::.Ia!tIiIIIIthe G¡andStade desub's finan-um offerednumber ofa created in 2oo7' OL Foundation thus led to the mainte-n ionships created between OL and a pool of local non-profito ng more than a simple philanthropic stÌategy' the creationo also the symbol of the start of OLs CSR strategy' In 2012 theboard nominated one of the only two female adminidtrators to head a csR com-to develoP the social PolicYgave signifrcant amounts ofub allocated both imPortantis generallY seen in Frenchand European soccer.ols cunent transitionaì. model should be complete by tle delivery of the newstadium. Initially fo¡ecast for 2013, the stadium's inauguration wilì now not becelebrated beforc 2016. Annual stadium levenues, which have been estimated atbetween Z0 and 1OO million euros by 2020, will make a stlong contribution to theclub's future financial performance, It remains to be seen whethe¡ these stlategicorientations anchored in a sbong social dimension are merely transitional, or if theywill be at the co¡e of this new business model.OUESTIONS1. What is a business model? What does it inean for a professional sports club?2. The reasons for changing the oL traditional business model to a social one a¡enumerous. List tlem and discuss them.3, What is CSR? How does it take shape in this case?4, Could CSR persPectives be fully integrated into the core st¡ategy of a profes-sional sports club?5. Is the new OL business model sustainable? Expand your analysis to other profes-sional soccer clubs, and more generally to the business of spod'coNcLUstoNSThe business models of professional football clubs have long been thciught of asan answer to the needs of both sporting and economic performance. However, theintroduction of new logics distilled by the sustainable development trend, such asthe necessity for an organization to take into account tlre interests of its stakeholders,questions this traditional model.Increasingly, club managers are asked to think according to global performanceprinciples, aiming at the creation of new sustainable business models. The emer-gence of the model of private ownership of European stadiums, illustrated in thiscase, supports this vÍew. Private ownership will enable the club to engage in moreprofitable and value-adding relationships, Therefo¡e, analysing the change of busi-ness model is valuable fo¡ club managers wishing to have new managing st¡ategies attheir disposal, and also for those responsible for implementing these changes.RECOMMENDED READINGThe literature on the concept of the business model is flourishing. We first sug-gest refeûing to Drucker's 1994 article, published in the Horvo¡d Business Review,Although he does not use the te¡m 'business model, explicitly, he defines the con-cept. In the same journal, Johnson, Christensen and Kagerman's Z00g article enablesus to go beyond the definition of the concept by introducing the beneûts of a changeof model with the help of recent examples.Focusing on football management, a book such as Chadwick and Hamil (2010)allows the case to be put into percpective through the problems every professionalfootball club is confronted with. French-speaking students could also ¡efer to thewo¡k of Desbordes and Chanavat (201s), and more especially to the chapter byScelles and Andreff (2015), allowing a contextuaìization of this study in reçect tàFrench football.BIBLIOGRAPHY76Breitbarth, T. and Hanis, P. (2008). The role of corporate social responsibility in the socce¡business: towards the development of a conceptual modeÌ. European spott ManogementQua rte rly, g(z), 7z 9-206.Chadwick, S. and Hamil, S. (2010). Managing Footboll: An Internationol perspective.Buttevorth Heinemann, Oxford.06.e Frenchurnol.77A Fr ¡ncôii É B.rYii: OlyrnFrdvr' I !c¡:ì.rrIlohnson, M. W., Ch¡istensen, C. M. and Kageman, H. (200s). Reinventing your businessmodeù Haruard Business Review,86(121, 5o-9.Paramio-salcines, |., Babiak, K. and Walters, G (2013) Routledge Handbook of Sport ondCorporate Social fr.esponsibility. Routledge, Oxford.Scellei, N. and And¡eil W. (2015). Le modèle écònomique d'un club professionnel defootball en F¡ance, in M. Desbordes and N. Chanavat (eds), Le marketing du footboll'Economica, Paris.RECOMMENDED WEBSITESFinancial Ttmes (2013). Jean-Michel Aulas: Football man who scores in big business,accessed 11 July 2015 from www.ft.com/intl/cms/s/0/bf238434-80d6-11e2-gfae-00144feabdc0.htmlHward Business Review (2075). Whêt is a business model?, accessed 11 July 2015 ftomhttps://hbr.org/201 5/01. /what-is-a-business-modelLe Nouvel Econômiste (2011). Le business model de I'OlympiQue Lyonnais - du club defoot à l'entreprise de spectacle, accessed 11 JuÌy 2015 from ww.lenouveleconomiste'fr/le-business-model-de-lolympique-lyonnais-du-club-de-foot-aJentreprise-de-spectacle-11702l (in French)Olympique Lyonnais (n.d.). New stadium - Stade deS Lumières. Accessed 11 July 2015 fromww.olweb.fr/e n/team/new-stadi um-1 67.html€ÃsË Ë ËSOCIAL MED1A AI\ID MEDTA MANAGEMENTRAYMOND E. BOYLELEARNING OUTCOMESUpon completion of this case study, the reader should be able to:¡ understand the key role played by social medía ¡n football pR;{ apprecíate the importance of med¡a train¡ng among football managers;r understand the importance of briefing for líve media interviews;t be clear how important reputation management ¡s in the 2+n me¿íaenvironment.OVERVIEW OF THE CASEThis case rtudy highlights the ¡mportance of speed in the dígital sports news envi_ronment, and the key role that communications experts need to play in helpingmanagers and players understand the implicat¡on of med¡a actions on the reputation of the club, and by extension its brand,lr I78/\ Ér.rnçoi5 € B,ì!l( 5o.,.rj ¡ 1.ai'.',:,::l :,rjl.,(.,.,.,.,,1tsBN 978-1-138_80245_29 tutil/t/L[ilüuruil:]1:.:s!4iÈt¡ì!d..triit.ntstnternêt¡onal Cases ¡n the Bu!o^,spo,t,'"n"!"i;i;;:"ïffi ?ål.tí""ílä,'ffi:'ål"j;"""ïr^1?i:n-toênysportbus jnesstookrns to deepen their understandi"e "r.å;t;"örã,ïr'Jt"å3iåii'in".í pioi".i¡ån"i'-SPORI SIUDIES / SUSINESS AND MANAGEMENTINTERNATIONAL CASES INThe BUSINCSS-1 Zf-{ogæZätu)oJ>CDr(noafiqëg1z!oì-tU,aooo.maocfmo,o_6F>a-=-o+<c(,oJJJOa-JFc)U+@5EÈ'oa¡SportChadwickur and John Beecht

The strategic repositionning of Olympique Lyonnais : towards a new business model

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The strategic repositionning of Olympique Lyonnais : towards a new business model

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Serveur académique lausannois