Erik Thibaut, John Eakins, Annick Willem and Jeroen Scheerder
First, the income elasticities are calculated for different levels of income, for both the decision to spend money on sports and the amount of money that is spent. Second, the…
Abstract
Purpose
First, the income elasticities are calculated for different levels of income, for both the decision to spend money on sports and the amount of money that is spent. Second, the study researches whether different operationalisations of income (i.e. family versus personal) result in different elasticity values. Third, the effect of sports-specific and non-sports leisure variables on sports participation is investigated.
Design/methodology/approach
A representative dataset of 3,775 adults is used containing a wide variety of leisure characteristics, gathered by means of a face-to-face survey. By means of a Tobit regression model both the determining factors of sports expenditure and the income elasticities are analysed.
Findings
For lower income individuals, a rise in income has a relatively bigger influence on the probability to spend money on sports participation, than is the case for higher income individuals. A positive relationship is found with sex (male), education, number of minutes and disciplines of sports and membership of a socio-cultural organisation, while age, watching TV and attending cultural events have a negative effect.
Social implications
The study provides evidence that income-based segmentation of sports participants could turn out to be an efficient policy tool. By lowering the monetary-burden for lower incomes, it can be expected that participation rates can be raised efficiently.
Originality/value
For the first time the relationship between income and expenditure is explored for different levels of income and for two operationalisations of income. Moreover, the inclusion of non-sports leisure variables allows investigating relationships between sports consumption and other leisure activities.
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Joris Corthouts, Géraldine Zeimers, Kobe Helsen, Camille Demeulemeester, Thomas Könecke, Thierry Zintz and Jeroen Scheerder
Being innovative is important for non-profit sport organizations in order to meet the ever-changing and increasing societal needs. Understanding why and to what extent…
Abstract
Purpose
Being innovative is important for non-profit sport organizations in order to meet the ever-changing and increasing societal needs. Understanding why and to what extent organizational innovativeness differs between non-profit sport organizations is, therefore, important to assess and increase their chances of survival. The purpose of this study is to compare the structural characteristics and attitudes of innovation attributes between three groups of sport federations (SFs).
Design/methodology/approach
An online self-assessment survey was sent to all recognized regional Belgian SFs (N = 156). Simultaneously, an observational desk research (i.e. media analysis) was carried out. Results from both data collection methods were combined to develop a composite organizational innovativeness-index, based on which the federations were then clustered in three distinct adopter groups.
Findings
Comparative statistics show that structural background characteristics generally are poor indicators for adopter categorization. In contrast, the attitudes about compatibility (i.e. the consistency of innovations with existing values) and complexity (i.e. the extent to which innovations are difficult to apprehend) seem the most important distinctive determinants for the different groups of SFs.
Originality/value
The study's contribution is twofold. First, it offers a methodological contribution with the development of an index, which enables the categorization of non-profit sport organizations according to their organizational innovativeness; thus, it provides a critical counter-argument to the importance of organizational structural background characteristics from previous studies. Second, the study's results may support non-profit sport organizations in improving their innovativeness, for instance by improving the perception of compatibility with innovation or by guiding policymakers in creating a more supportive environment for these organizations to do so.
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Jasper Truyens and Marc Theeboom
In 2008, Paul De Knop (Vrije Universiteit Brussels) stated that “in spite of the social value of sport and its role as a policy tool, human sport sciences still lack a fulfilling…
Abstract
In 2008, Paul De Knop (Vrije Universiteit Brussels) stated that “in spite of the social value of sport and its role as a policy tool, human sport sciences still lack a fulfilling position in the academic world.” In Belgium and in Flanders (the northern and Dutch-speaking part of the country), the sociology of sport is still a small field of research among the sport sciences. The discipline is institutionalized within the institutes of physical education of the three universities (University of Ghent; Katholieke Universiteit Leuven; Vrije Universiteit Brussels). The scarcity of academic funding streams resulted in a focus on more applied, policy-based research in Flanders. Additionally, all institutes emphasize increasingly an interdisciplinary cooperation to connect with stronger research fields (e.g., health sciences, social studies, or international studies on sport participation). Even though each university has its own research tradition, the universities and the government cooperate in a longitudinal study on sport participation in Flanders. De Knop, who became rector of the Vrije Universiteit Brussels (VUB) in 2008, was the first lecturer of the course sociology of sport at his university. He graduated in 1975 as licentiate in physical education and his career at the university converged with the development of the discipline. Together with Roland Renson and Bart Vanreusel (KU Leuven), he was one of the academic pioneers for the sociology of sport in Flanders.
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Diane Breesch, Steven Vos and Jeroen Scheerder
The purpose of this paper is to analyze whether the fitness industry in Belgium is financially viable in its position as a growing commercial player within the framework of the…
Abstract
Purpose
The purpose of this paper is to analyze whether the fitness industry in Belgium is financially viable in its position as a growing commercial player within the framework of the European sport model where non-profit and public sport providers still have a strong impact.
Design/methodology/approach
The authors evaluate the financial performance of the Belgian fitness industry using a time-trend analysis applying a cross-sectional research design for the years 2002 through 2007.
Findings
The analysis shows that the Belgian fitness industry is not able to generate positive income figures despite large increases in sales revenues. In particular fitness chains generally accumulate losses. However, the Belgian fitness industry pursues an active investment policy resulting in high noncash expenses in depreciations negatively influencing accounting profit numbers. The operating cash flow generated by the Belgian fitness industry is, nevertheless, largely positive. Although no immediate liquidity problem exists, the fitness industry needs to improve its profitability in the long run in order to stay in business.
Research limitations/implications
This study can be a starting point for further and more in depth financial performance evaluations of commercial actors in the field of sport. Differences and similarities between European countries should be investigated in order to generalize the findings.
Practical implications
The conclusions could support regulators in policy decisions and business managers in strategic decisions relying on financial information in order to pilot their organization.
Originality/value
Analyzing the financial performance of a sport industry at a national scale is challenging. However, this kind of analysis is not frequently performed for commercial sport providers such as the fitness industry. This is precisely where this paper wants to contribute.
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Mathieu Winand, Thierry Zintz and Jeroen Scheerder
The purpose of this study is to develop a tool to manage financial performance of sport federations. It stimulates thinking about the necessity for non‐profit sport organisations…
Abstract
Purpose
The purpose of this study is to develop a tool to manage financial performance of sport federations. It stimulates thinking about the necessity for non‐profit sport organisations to develop financial performance measures and management to survive and/or to grow.
Design/methodology/approach
Adapting the Ritchie and Kolodinsky model of factor analysis through financial ratios in the sport federation context, the paper develops a framework for financial performance measurement of sport federations in Belgium for the years 2001 through 2006.
Findings
Based on a principal component analysis, six financial performance‐related categories were constructed, i.e.: public funds dependence; financial balance; attraction of resources; financial budget; member services investment and elite services investment. They form the basis of a dynamic strategic management tool where financial categories are related to each other.
Research limitations/implications
The financial management tool can be a starting point for further organisational (performance) research. Differences and similarities between countries (e.g., sport policy priorities) and sport organisations (e.g., sport profiles) could be better investigated through this financial performance framework.
Practical implications
The tool developed should help strategic volunteers and managers of sport federations to take strategic decision relying on financial information in order to pilot their organisation and to communicate with their stakeholders.
Originality/value
Developing financial performance measurement of non‐profit sport organisations is challenging and considerably different from for‐profit and non‐profit organisations. It provides researchers and practitioners with a viable model for analysing financial strategy and performance of sport federations over time.
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Manuel Alonso Dos Santos, Ferran Calabuig Moreno and María Huertas González-Serrano
The purpose of this paper is to examine the 2004-2015 financial performance (FP) of the national non-profit US Table Tennis Association using financial effectiveness (FE…
Abstract
Purpose
The purpose of this paper is to examine the 2004-2015 financial performance (FP) of the national non-profit US Table Tennis Association using financial effectiveness (FE) indicators and financial efficiency (FY) ratios.
Design/methodology/approach
Archival data were used together with a case study method. FP was evaluated by net income; FE was indicated by total assets and total revenues while FY was examined by program services ratios and support services ratios.
Findings
On an average, the FP of the organization was poor ($6,475.00 net loss per year), FE was moderate (50 percent increases in assets and revenues), and the FY was poor (80 percent revenues spent on program services with a return on asset of 201.5 percent).
Research limitations/implications
By using case study method, the results may not be generalizable to other national non-profit sports organizations with non-financial goals.
Practical implications
The paper suggests that national non-profit organizations can enhance their FP by focusing on both FE and FY.
Originality/value
The study utilized both FE and FY measures to evaluate the FPs – a major shortfall in similar studies.
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The aim of this study was to predict the financial performance of the United Kingdom's (UK) national non-profit sport federations (NNSFs) using financial effectiveness indicators…
Abstract
Purpose
The aim of this study was to predict the financial performance of the United Kingdom's (UK) national non-profit sport federations (NNSFs) using financial effectiveness indicators and financial efficiency ratios, as framed by the resource dependency theory and stakeholder theory.
Design/methodology/approach
The dependent variable was financial performance quantified as net income. The independent variables were financial effectiveness (measured as total assets and revenues) and financial efficiency (indicated as return on assets, sponsorship efficiency and donation efficiency). With the help of panel data, the study utilised binary logistic regression and Kendall’ tau correlations.
Findings
Binary regression results reported a Nagelkerke R2 of 87.5%, with ROA and donation efficiency being the best predictors of financial performance. Results from Kendall’ tau correlations indicated a positive and statistical association between financial performance and financial effectiveness and financial efficiency.
Research limitations/implications
The study was delimited to UK non-profit sports organisations that had free, useable and publicly available financial data. For top management, donors and policy advocates, the study highlighted the superiority of financial efficiency over financial effectiveness.
Originality/value
The study adds to research, theory and practitioners' perspectives by offering a new way of evaluating financial performance with the combination of financial effectiveness and efficiency and not opinions, a factor uncommon in previous studies.
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The purpose of this paper is to examine the 2009 to 2016 financial performance of the US Hockey Inc., using financial effectiveness indicators and financial efficiency ratios.
Abstract
Purpose
The purpose of this paper is to examine the 2009 to 2016 financial performance of the US Hockey Inc., using financial effectiveness indicators and financial efficiency ratios.
Design/methodology/approach
With the assistance of financial trend analysis, archival data were used to examine the financial performance (evaluated by net income), financial effectiveness (indicated by total assets and total revenues) and financial efficiency (examined by programme services ratios and return on assets) of US Hockey Inc.
Findings
On average, the financial performance of the organization was positive ($30,895 net income per year). Financial effectiveness was steady with increases in assets and revenues. Financial efficiency was poor with 79% of revenues spent on programme services and 1.45% average return on asset.
Research limitations/implications
The results can be generalized to similar national non-profit sports federations but not corporate sports entities with dissimilar financial goals.
Practical implications
The results revealed that national non-profit sports federations can boost their financial performance by maintaining a double strategically focus on both financial effectiveness and financial efficiency.
Originality/value
The study used both financial effectiveness and financial efficiency measures to evaluate the financial performances of a national non-profit sports federation – a neglected approach similar studies.