Financial Structures and Strategies in The Sport Industry: Sustainability and Economic Growth
Chapter from the book:
Özbay,
S.
&
Turan,
M.
&
Seçkin Ağırbaş,
İ.
(eds.)
2024.
Sustainability and Qualitative Research in Sport Management.
Synopsis
This study analyses sports economics and financing models in detail and examines how sport has become a global industry. Sport has gained an important place in the socio-economic structure beyond the physical and mental development of individuals. Especially with the professionalisation of sports clubs, the use of various financing methods such as equity, crowdfunding, sponsorship and borrowing has increased in order to ensure financial sustainability.
The study analyses the effects of financing structures of sports clubs on their long-term sportive and economic success. Financial sustainability is a vital factor for clubs to both improve their sporting performance and maintain their competitiveness. In addition, the economic opportunities provided by major sports organisations to host countries and the positive effects on local economies through tourism revenues are evaluated. The effects of global economic crises, especially after the 2008 crisis, on the financing strategies of sports clubs are also analysed. In this process, it has been stated that digital finance and technological developments offer important opportunities in terms of ensuring financial sustainability, especially for small sports clubs.
In conclusion, the study reveals the role of financing models of sports clubs on their sporting success and discusses how digitalisation and modern financing methods can optimise the economic sustainability of clubs. Strategic financing decisions in the sports industry are critical for the future success and growth of clubs.