Introduction – 271 words 2,070 overall
The main aim of this paper is to identify and discuss a contemporary issue that affects operations management, strategic management and human resource management within the specific industry. Building on the authors’ interest this paper will focus on the arising issues and problems related with the rapid growth of the influence of private and public (to lesser extent) benefactor owners within the European football industry (Lang et al., 2011). The ‘European model of Sport’ (Holt, 2009) refers to the overall design of the European Football Industry and implies a guideline that organisations has to follow. The most important principles assume a global hierarchy where national competitions are seen superior over the domestic league competitions; competitiveness in terms of promotion and relegation; lack of entry barriers to the lowest level of competition; competitive and mobile labour market; financial negotiations and transactions between clubs, players and sponsors (Szymanski, 2003; Holt, 2009). Players are seen as the most important asset for the football club in terms of exploiting their playing talent; creating competitive advantage; and achieving win-and profit-maximisation objectives (Rowbottom, 2002). The growing existence of the benefactor owners leads to the situation where clubs focuses purely on the win-maximisation objective rather than combination of both. This phenomenon is often referred to as the ‘Sugar Daddy’s Game’ and receives an increasing attention amongst academics within the sport field (i.e. Lang et al., 2011; Franck & Lang, 2012; Madden, 2012; Peeters & Szymanski, 2012). This paper is organised as follows: (1) defining and explaining basic theoretical background related to the issue; (2) literature review and in-depth critical examination of the issue; and (3) conclusions and recommendations.
Impact of the presence of ‘sugar daddies’ on the Football Industry – 1,799 – 2,000 words
1. Defining and explaining theoretical background related to the issue – 685 words
As indicated in the introduction the ‘sugar daddy’ approach may affect at least three interdependent operational areas of organisation. These are strategic management, operations management and human resource management, which will be briefly explained in this subchapter. To better understand the ‘sugar daddy’ phenomenon it is important to define it within the right historical and economical context. The ‘sugar daddy’ term refers to wealthy individual who decided to invest large amount of their capital into taking over the football club (Lang et al., 2011) and then to inject even more money in order to acquire better coaching and playing talent, hence to increase the overall team quality (Madden, 2012). However there were many private owners of football clubs in the past. Wealthy investors like Jack Walker (Blackburn Rovers F.C); Silvio Berlusconi (AC Milan) or Masimo Moratti (Internazionale Milano) (Lang et al.,...