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Article
Publication date: 8 August 2022

Robbie Millar, Daniel Plumley, Rob Wilson and Geoff Dickson

The purpose of this study is to critically examine the financial health and performance of the English and Australian cricket networks. This includes the county cricket clubs…

Abstract

Purpose

The purpose of this study is to critically examine the financial health and performance of the English and Australian cricket networks. This includes the county cricket clubs (CCC) and state and territory cricket associations (STCA) affiliated to the England and Wales Cricket Board (ECB) and Cricket Australia (CA) respectively, as well as the ECB and CA themselves. The authors apply resource dependency theory to understand if there are any financial dependencies within the networks of cricket in England and Australia.

Design/methodology/approach

The data for this research was obtained from the financial statements of the ECB, the 18 affiliated CCCs, CA and the six affiliated STCAs. This sample covers the last 5 years of financial information (2014–2019) for all the organisations at the time of writing. Ratio analysis was conducted on all organisations within the sample to assess financial health and performance.

Findings

Both CCCs and STCAs show signs of poor financial health. There is a clear dependence on the financial support they receive from the ECB and CA respectively and this dependence appears more prominent in Australia. The ECB and CA have better financial health which ultimately allows them to financially support the CCCs and STCAs.

Originality/value

The ECB and CA are facing difficult financial decisions to remain financially secure themselves due to the impact of COVID-19 but also to support their affiliated clubs. The affiliated clubs do not generate sufficient revenues and must diversity their revenue streams if they are to become financially self-sustaining. This financial structure and distribution mechanism will be vital in safeguarding the future of some of England’s and Australia’s most important cricket organisations.

Details

Sport, Business and Management: An International Journal, vol. 13 no. 2
Type: Research Article
ISSN: 2042-678X

Keywords

Article
Publication date: 8 May 2017

Rob Wilson and Daniel Plumley

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 is to extend the knowledge base on…

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Abstract

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 is 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 were obtained by dissecting the annual accounts of nine English Premiership rugby clubs between 2006 and 2015. Analysis was performed using the performance assessment model, 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 suggest 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.

Originality/value

The 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.

Details

Sport, Business and Management: An International Journal, vol. 7 no. 2
Type: Research Article
ISSN: 2042-678X

Keywords

Article
Publication date: 18 June 2024

Sarthak Mondal, Daniel Plumley and Rob Wilson

This paper analyses J1 League and J2 League clubs during the period 2011–2020 to anticipate financial distress.

Abstract

Purpose

This paper analyses J1 League and J2 League clubs during the period 2011–2020 to anticipate financial distress.

Design/methodology/approach

Data were collected for 29 professional football clubs competing in the J1 and J2 League for the financial years ending 2011–2020. Analysis was conducted using Altman’s Z-score methodology and additional statistical tests were conducted to measure differences between groups.

Findings

The results show significant cases of financial distress amongst clubs in both divisions and that clubs that have played predominantly in the J1 League are in significantly poorer financial health than clubs that have played predominantly in the J2 League. Overall, the financial situation in Japanese professional football needs to be monitored, a position that could be exacerbated by the economic crisis, caused by the coronavirus disease 2019 (COVID-19).

Research limitations/implications

While the financial situation for a majority of the clubs in the J-League presents an austere picture, comparison with clubs in other leagues across Asia and Europe and understanding the different policies set by these leagues would enable us to understand whether the phenomenon of financial distress is common to other clubs and leagues across different countries and continents.

Practical implications

The paper recommends that J-League visit the existing club licensing criteria and implement equitable cost-control measures, such as implementing a cap on acceptable losses over a specified period or restricting overall expenditures as a percentage of the club’s revenue.

Originality/value

The paper extends the evidence base of measuring financial distress in professional team sports and is also the first paper of its kind to examine this in relation to Asian professional football.

Details

Journal of Applied Accounting Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 10 August 2023

Beth G. Clarkson, Daniel Plumley, Christina Philippou, Rob Wilson and Tom Webb

Despite multiple structural changes since its 2011 inception, many English Women's Super League (WSL) clubs have recorded losses and carried debt, leading to concerns about the…

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Abstract

Purpose

Despite multiple structural changes since its 2011 inception, many English Women's Super League (WSL) clubs have recorded losses and carried debt, leading to concerns about the financial health of the league. This study is the first to analyse the financial health of any professional women's sports league in the world. The authors examine WSL club finances between 2011 and 2019, theoretically situate the findings within joint production, and make policy recommendations.

Design/methodology/approach

In total, 73 annual accounts of 14 WSL clubs between 2011 and 2019 were scrutinised.

Findings

Since 2011, club revenue has increased 590% but is outstripped by club debt increase (1,351%). The authors find poor financial health throughout the league, which may damage both its and the clubs' future growth. Findings also indicate an emergent group of dominant clubs on and off the pitch, which may threaten long-term sporting integrity and disrupt the joint production of the WSL product.

Practical implications

Women's football exists at an important crossroad, and its next moves need careful consideration in relation to its governance structures and league design.

Originality/value

The authors provide a road map for necessary action (e.g. revenue distribution, licensing criteria, rewards) to protect the financial health of the WSL's clubs and promote sporting competition to assist the sport to capitalise further on positive gains in recent years.

Details

Sport, Business and Management: An International Journal, vol. 13 no. 5
Type: Research Article
ISSN: 2042-678X

Keywords

Article
Publication date: 10 November 2020

Daniel Plumley, Jean-Philippe Serbera and Rob Wilson

This paper analyses English Premier League (EPL) and English Football League (EFL) championship clubs during the period 2002–2019 to anticipate financial distress with specific…

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Abstract

Purpose

This paper analyses English Premier League (EPL) and English Football League (EFL) championship clubs during the period 2002–2019 to anticipate financial distress with specific reference to footballs' Financial Fair Play (FFP) regulations.

Design/methodology/approach

Data was collected for 43 professional football clubs competing in the EPL and Championship for the financial year ends 2002–2019. Analysis was conducted using the Z-score methodology and additional statistical tests were conducted to measure differences between groups. Data was split into two distinct periods to analyse club finances pre- and post-FFP.

Findings

The results show significant cases of financial distress amongst clubs in both divisions and that Championship clubs are in significantly poorer financial health than EPL clubs. In some cases, financially sustainability has worsened post-FFP. The “big 6” clubs – due to their size – seem to be more financially sound than the rest of the EPL, thus preventing a “too big to fail” effect. Overall, the financial situation in English football remains poor, a position that could be exacerbated by the economic crisis, caused by COVID-19.

Research limitations/implications

The findings are not generalisable outside of the English football industry and the data is susceptible to usual accounting techniques and treatments.

Practical implications

The paper recommends a re-distribution of broadcasting rights, on a more equal basis and incentivised with cost-reduction targets. The implementation of a hard salary cap at league level is also recommended to control costs. Furthermore, FFP regulations should be re-visited to deliver the original objectives of bringing about financial sustainability in European football.

Originality/value

The paper extends the evidence base of measuring financial distress in professional team sports and is also the first paper of its kind to examine this in relation to Championship clubs.

Details

Journal of Applied Accounting Research, vol. 22 no. 1
Type: Research Article
ISSN: 0967-5426

Keywords

Abstract

Details

Sport, Business and Management: An International Journal, vol. 7 no. 2
Type: Research Article
ISSN: 2042-678X

Article
Publication date: 18 April 2018

Girish Ramchandani, Daniel Plumley, Sophie Boyes and Rob Wilson

This paper aims to provide empirical evidence on competitive balance in the “big five” European football leagues, namely, the English Premier League, French Ligue 1, German…

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Abstract

Purpose

This paper aims to provide empirical evidence on competitive balance in the “big five” European football leagues, namely, the English Premier League, French Ligue 1, German Bundesliga, Italian Serie A and Spanish La Liga.

Design/methodology/approach

This paper uses recognised measures of competitive balance to measure levels of concentration (within-season competitive balance) and dominance (between-season competitive balance) in the selected leagues over 22 seasons between 1995/96 and 2016/17.

Findings

French Ligue 1 emerged as the most balanced league in terms of both concentration and dominance measures. The analysis also points to a statistically significant decline in competitive balance in all leagues apart from Serie A (Italy).

Originality/value

The findings of this study are of concern for the league organisers. Competition intensity is a key component of a sport league, and a league that is dominated by one or a select few clubs is less attractive within the marketplace. This paper presents challenges at the league governance level for the five leagues examined.

Details

Team Performance Management: An International Journal, vol. 24 no. 5/6
Type: Research Article
ISSN: 1352-7592

Keywords

Article
Publication date: 19 June 2019

Girish Ramchandani, Daniel Plumley, Harry Preston and Rob Wilson

This paper aims to explore at what league size competitive balance reaches its best level through a longitudinal study and by using the English Premier League (EPL) as an example.

Abstract

Purpose

This paper aims to explore at what league size competitive balance reaches its best level through a longitudinal study and by using the English Premier League (EPL) as an example.

Design/methodology/approach

To test the influence of league size on competitive balance in the EPL, the authors first calculated competitive balance scores for 22 seasons between 1995/96 and 2016/17 under the existing 20 team system. They 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

The 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, the authors 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 have practical relevance for league organisers and the Union of European Football Associations given that they themselves have stated that competitive balance will be a big challenge for the European football industry in the coming years.

Details

Team Performance Management: An International Journal, vol. 25 no. 3/4
Type: Research Article
ISSN: 1352-7592

Keywords

Article
Publication date: 13 August 2019

Rob Wilson, Daniel Plumley and Stuart William Flint

The purpose of this paper is to examine the effect of managerial change in the English football industry. The authors’ theoretical discussion covers three contrasting concepts…

Abstract

Purpose

The purpose of this paper is to examine the effect of managerial change in the English football industry. The authors’ theoretical discussion covers three contrasting concepts that attempt to explain the association between manager change and organizational performance (scapegoating theory, vicious circle theory and tenure and life-cycle theory).

Design/methodology/approach

Data were collected for the four main English Football Leagues (EFLs) between 2000/2001 and 2015/2016. A total of 2,816 football matches were included in the study and during this time 525 instances of managerial change were observed. Analysis was conducted using relevant statistical techniques to examine the impact of managerial change on performance.

Findings

The results show significant differences in all four EFLs when considering teams who make a managerial change and those who do not. Further analysis revealed that a managerial change is more beneficial for clubs in the bottom half of the league, particularly for the English Premier League.

Originality/value

The implications for clubs competing in English football are clear when considering the strategic direction of the club in respect of managerial change and its impact on team performance. Yet, our findings come with a warning. The findings do not infer direct cause and effect here, and any board decision should consider additional factors other than sporting performance before deciding to sack their manager.

Details

Sport, Business and Management: An International Journal, vol. 10 no. 1
Type: Research Article
ISSN: 2042-678X

Keywords

Article
Publication date: 26 February 2019

Dongfeng Liu, Rob Wilson, Daniel Plumley and Xiaofeng Chen

The purpose of this paper is to analyze fans’ perceptions of the corporate social responsibility (CSR) activities of a professional football club, specifically whether or not…

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Abstract

Purpose

The purpose of this paper is to analyze fans’ perceptions of the corporate social responsibility (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.

Design/methodology/approach

The paper uses the example of a professional football club in China as a case study for data analysis. Based on a sample of 451 home team fans, analysis was conducted through calculation of descriptive statistics, and exploratory factor analysis. Regression analysis was conducted to determine the impact of perceived CSR performance on fans’ patronage intentions.

Findings

The results revealed that 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, the authors have identified that the two main CSR factors that would influence fans’ patronage intentions are: “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.

Details

International Journal of Sports Marketing and Sponsorship, vol. 20 no. 2
Type: Research Article
ISSN: 1464-6668

Keywords

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