Evolution of the football industry and the increasing relevance of youth academies as a management tool in football clubs management due to the new rules of FFP(Financial Fair Play)
Volume: (12100 words) 44 pages
Style: Harvard
UK English
Programme: Sport Management and the Football world
Details of Research
1. Proposed title: Evolution of the football industry and the increasing relevance of youth academies as a management tool in football clubs management due to the new rules of FFP(Financial Fair Play)
2. Introduction: The goal of this research is to analyse the various forms of management of the youth sector at European level. It will analyse strengths and weaknesses and, finally, define an ideal model of management of the youth sector.
This paper will start from the evolution of the football industry and its passage from pure “fun”, to the important role that established and listed enterprises actually play in the financial markets. The first part will address the development and governance of football clubs and the rules issued by UEFA that oversee the management of football clubs at European level: the Financial Fair Play. FFP has as its main goal the introduction of discipline and rationality in clubs finance, pressure reduction on wages and transfers and to limit the effects of inflation. FFP also tries to encourage clubs to rely only on their own profits, making long term investments on the youth academy and infrastructures. Moreover it also tries to protect the long-term sustainability of European football and ensure the on time payment of debts by the clubs.
In the second part of the paper an analysis, in economic terms, of the management of a football club will be carried out, with particular reference to the importance of management for the proper and efficient running of a football club, and how important communication has become through web tv, Apps, mobile services and social networks in order to transform fans and followers into proper clients that generate income for the club. The last part will be constituted by a thorough investigation on football clubs youth academies with particular attention on the best practices at European level and Italy’s inability to keep up with the top leagues in Europe on this matter. As mentioned before the aim of this paper is to try and define an idyllic management of youth academies through an in-depth study of the new UEFA youth academies development plans like the Youth league and the UEFA AtTrick programme because In the scenario that characterizes modern football, investment in youth is a strategic lever of primary importance. The organization of youth sports has become one of the areas of activity able to contribute effectively to the economic management of sports clubs.
3. Preliminary literature review: Since the early nineties, football activities at European level have changed its physiognomy. Previously football was regarded as a mere sporting fun and, as such, was analysed only in technical and competitive terms. Nowadays instead, implications in terms of management, economics and finance are of significant importance to induce the universities and centres of specialized study to examine football from a different point of view than in the past. We could now classify the football world as a proper economic sector, characterized by well-delineated profiles from a business perspective. Players became more than just athletes they are now seen as assets that actually represent a real value for the cub itself, also fans are not seen anymore as mere enthusiasts but are increasingly assimilated as proper clients on which have been structured appropriate business strategies to take advantage from, a financial point of view, of their loyalty to the team as explained by E.Giannessi in Appunti di economia aziendale, Pinci, Pisa 1979. Moreover its of key relevance the fact that scoreline is not any more the only aspect that has to be taken into consideration. This evolution towards a more business oriented approach brought clubs to consider business accounts vital therefore financial result has to be pursued with the same wilfulness as sport result due to this new concept of football-business that found its origins in England through the new fundamental incomes deriving from broadcasting platforms. This new cash flow caused a metamorphosis in the management of European clubs that had to elaborate new and effective commercial management techniques to combine with traditional ones.
“In Europe (and most of the world) football clubs have generally been seen as win maximisers – spending as much as possible on the success of the team subject to breaking even” (Sloane, P. (1971) ‘The economics of professional football: The football club as a utility maximiser’, Scottish Journal of Political Economy, vol. 17, pp. 121-146). This new approach of European clubs for profit-maximisation shows how they are slowly moving towards the US model of sports where “Owners of American teams are often characterised as profit-maximisers who view professional sport as a business for making money” (Stefan Szymanski on the business of football) http://www.open.edu/openlearn/money-management/management/business-studies/stefan-szymanski-on-the-business-football
With the introduction of the FFP, UEFA is trying to regulate clubs financials, moving towards a more business-oriented approach due to the constant issue of chronic loss making by European clubs.
UEFA through the FFP doesn’t want to put all clubs at the same level, it encourages clubs to build their success, rather than continue to seek “quick fixes”. Football clubs need a better environment, where investments in the future are better rewarded and there is greater credibility in the long run. Encouraging investments in youth academies and infrastructures and establishing acceptable deficit by spending what they earn achieving break-even. “This idea of self-sustainability relates to UEFA’s underlying belief that transfer fee and wage inflation continues unabated because each set of new club owners inject more money into the European football club market.” http://www.trulyreds.com/20110922/a-treatise-on-ffp-and-football-finance/
Due to the FFP regulation, clubs are trying to adapt by searching new ways to diversify and create more sources of income. This obviously could forces managers to save money paying more attention in investing in their academy. Especially big teams have been criticized for not being able to contribute with home–grown players to the league and especially to the national team. They’ve been spending incredible amounts of money for international players giving little attention to the enormous amount of talent laying in their own country. FFP regulations will surely push these clubs to invest their money on the improvement of facilities that will integrate a beneficial structure to bring through home grown players not sporadically but on a regular basis for many years. Clubs have located in youth development a very important management model considering that the youth system will not be taken into consideration in the FFP regulations. “According to requirements to the accounting of players registrations, set by UEFA Club Licensing and Financial Fair Play Regulations, despite the fact that football club can obtain some benefit from the use or transfer of players grown in club, in terms of financial accounting expenditures on development and education of home-grown youth players couldn’t be reflected in the balance sheet, because only costs of purchased registrations of players are subject of capitalization….” (Mediterranean Journal of Social Sciences ISSN 2039-9340(Print) ISSN 2039-2117)
This new attention given to youth academies is the main focus of my research. Through the analysis of the top 5 European leagues models of youth academies we will see all the different approaches adopted from each country and how Italy is still behind in terms of organization and management. This paper has the aim to outline and ideal management model for the youth academies of professional football clubs through the analysis mentioned before.
4. Research question(s): Due to the evolution of the football industry towards a more business oriented approach Professional football clubs are discovering the importance of Youth academies as a strategic management tool, is it possible to identify and ideal management model in order to create benefits for the club?
5. Proposed research method(s): Analysis of quantitative and qualitative data retrieved through interviews documents and observations. When analysing the different models of youth academies management the case study method will be adopted due to its better suitability regarding this research. Interviews will take place with important figurers in Italian football, which will try to address the on growing importance of youth academies and how they are going to implement them in regards of the new FFP regulation. The choice of conducting interviews has the base of my research in due to the fact the still little information has been released on Italy on this topic, in order to extrapolate a best practice on youth academy management
8. References:
1) Andreff, W. and Szymanski, S. (2006). Handbook on the economics of sport. Cheltenham, UK: Edward Elgar.
2) BBC News, (2013). Tackling football’s big money issues. [online] Available at: http://www.bbc.co.uk/news/business-22094902 [Accessed 17 Jan. 2015].
3) Giannessi, E. (1970). Appunti di economia aziendale. Pisa: Pellegrini.
4) Goal.com, (2014). Chelsea FC™s Transfer Dealings Through the FFP Filter – Goal.com. [online] Available at: http://www.goal.com/en-za/news/4633/soccerex/2014/08/18/5042086/chelsea-fcs-transfer-dealings-through-the-ffp-filter [Accessed 29 Jan. 2015].
5) Keaney, R. (2015). The Football Project » Why Financial Fair Play will benefit youth academies. [online] Thefootballproject.net. Available at: http://www.thefootballproject.net/posts/why-financial-fair-play-will-benefit-youth-academies/ [Accessed 9 Jan. 2015].
6) Kulikova, L. and Goshunova, A. (2014). Human Capital Accounting in Professional Sport: Evidence from Youth Professional Football. Mediterranean Journal of Social Sciences.
7) pastemagazine.com, (2015). 10 Ways UEFA’s Financial Fair Play is Changing Soccer. [online] Available at: http://www.pastemagazine.com/articles/2014/08/10-ways-uefas-financial-fair-play-is-changing-socc.html [Accessed 13 Jan. 2015].
8) Peeters, T. and Szymanski, S. (2014). Financial fair play in European football. Econ Policy, 29(78), pp.343-390.
9) Porro, N. (2008). Sociologia del calcio. Roma: Carocci.
10) Procacci, R. (2013). Il calcio moderno: gestione efficace del settore giovanile. Book Sprint.
11) Sloane, P. (1971). SCOTTISH JOURNAL OF POLITICAL ECONOMY:THE ECONOMICS OF PROFESSIONAL FOOTBALL: THE FOOTBALL CLUB AS A UTILITY MAXIMISER. Scottish J Political Economy, 18(2), pp.121-146.
12) Szymanski, S. (2001). Income Inequality, Competitive Balance and the Attractiveness of Team Sports: Some Evidence and a Natural Experiment from English Soccer. The Economic Journal, 111(469), pp.69-84.
13) Szymanski, S. (n.d.). Stefan Szymanski on the business of football. [online] Available at: http://www.open.edu/openlearn/money-management/management/business-studies/stefan-szymanski-on-the-business-football [Accessed 29 Jan. 2015].
14) Teotino, G. and Uva, M. (2012). Il calcio ai tempi dello spread. Bologna: Il mulino.
15) Trulyreds.com, (2015). A Treatise on FFP and Football Finance | The Manchester United fans blog – Truly Reds. [online] Available at: http://www.trulyreds.com/20110922/a-treatise-on-ffp-and-football-finance/ [Accessed 26 Jan. 2015].
Evolution of the football industry and the increasing relevance of youth academies as a management tool in football clubs management due to the new rules of FFP(Financial Fair Play)
Total maximum word count 12100 words 44 pages (double spaced, 275 words per page)
Style: Harvard
UK English
Chapter 1 Introduction and Background (1200words)
1.1 Introduction
1.2 Background to the study
The research problem
1.3 Rationale (reason for the study)
1.4 Aims and objectives of the study
The objectives of this research are:
1.5 Research questions
1.6 The relevance of the study
1.7 Structure of the Dissertation
Chapter 2 Literature review (4500words)
2.1. Introduction
2.2. Conclusion
Chapter 3 Research methods (1500 words)
3.1 Introduction
.
3.2 Research purpose
3.3 The research framework
3.4 Research philosophy and perspective
3.5 Research Approach adopted
3.6 Qualitative vs. Quantitative study
To Describe both qualitative method or quantitative analysis
3.7 Research methods used-
3.8 Sampling method
‘..
3.9 Data analysis
3.10 Validity and reliability- triangulation
To Describe triangulation
To Apply to this study
Writer will consider the following
3.11 Ethical concerns
3.12 Limitations and delimitations of the study
3.13 Conclusion
Chapter 4 ata Findings and Presentation of Results (1000 words)
4.1Introduction
4.2Interview results in tables based on the research objectives
4.3Conclusion
Chapter 5 Data analysis and Discussion (3000 words)
5.1. Introduction
5.2. Overview
5.3. Discussion of the specific objectives
5.4. Conclusion
Chapter 6 Conclusions and Recommendations (1000 words)
6.1. Introduction
6.2. Conclusions
6.3. Implications of the study
6.4. Recommendations
Appendices
Appendix 1:
References
Required 30 to 40 sources (Mainly recent sources between 2005 to 2015)
The goal of this research is to analyse the various
forms of management of the youth sector at
European level. It will analyse strengths and
weaknesses and, finally, define an ideal model of
management of the youth sector.
This paper will start from the evolution of the
football industry and its passage from pure “fun”,
to the important role that established and listed
enterprises actually play in the financial markets.
The first part will address the development and
governance of football clubs and the rules issued
by UEFA that oversee the management of football
clubs at European level: the Financial Fair Play.
FFP has as its main goal the introduction of
discipline and rationality in clubs finance, pressure
reduction on wages and transfers and to limit the
effects of inflation. FFP also tries to encourage
clubs to rely only on their own profits, making
long term investments on the youth academy(not
under FFP rules) and infrastructures. Moreover it
also tries to protect the long-term sustainability
of European football and ensure the on time
payment of debts by the clubs. Moreover it will
be constituted by a thorough investigation on
football clubs youth academies with particular
attention on the best practices at European level
and Italy’s inability to keep up with the top
leagues in Europe on this matter. As mentioned
before the aim of this paper is to try and define
an idyllic management of youth academies
through an in-depth study of the new UEFA youth
academies development plans like the Youth
league and the UEFA AtTrick programme because
In the scenario that characterizes modern football,
investment in youth is a strategic lever of primary
importance. The organization of youth sports has
become one of the areas of activity able to
contribute effectively to the economic
management of sports clubs.
my supervior told me to write 1000/2000 words
on the introductory part and then focus on the
answer to my research question:
Due to the evolution of the football industry
towards a more business oriented approach and
the introduction of financial fair play (FFP)
Professional football clubs are discovering the
importance of Youth academies as a strategic
management tool, is it possible to identify and
ideal management model in order to create
benefits for the club?
PROPOSED RESEARCH METHOD(S): Analysis of
quantitative and qualitative data retrieved through
interviews documents and observations. When
analysing the different models of youth academies
management the case study method will be
adopted due to its better suitability regarding this
research. Interviews will take place with important
figurers in Italian football, which will try to
address the on growing importance of youth
academies and how they are going to implement
them in regards of the new FFP regulation. The
choice of conducting interviews has the base of
my research in due to the fact the still little
information has been released on Italy on this
topic, in order to extrapolate a best practice on
youth academy management
12000 word minimum for the whole dissertation
.
