Making Money from Football

In: Business and Management

Submitted By omega30
Words 7880
Pages 32
Making money out of football

Stefan Szymanski[1]
Stephen Hall

The Business School, Imperial College London

April 2003

Abstract: In the US most economists have argued that professional sports teams are profit maximising businesses, but it is a widely held view in Europe that professional football clubs are not run on a profit maximising basis. This belief has important implications for the impact of policy measures such as income redistribution that are widely advocated. This paper looks at the performance of sixteen English football clubs that acquired a stock exchange listing in the mid 1990s. If the European story is true, we should have observed a shift toward profit maximising behaviour at these clubs. This paper finds no evidence of any shift in this direction. This result is consistent with the view that football clubs in England have been much more oriented toward profit objectives than is normally allowed.

Keywords: economics of sport, objective functions
JEL classification number: L21, L83

We thank to Dirk Nitzsche for assistance with data collection. We thank Peter Sloane and seminar participants at the CARR Outreach workshop on business history for helpful comments.

“Those clubs which have floated to become public companies – Manchester United, Newcastle United, Aston Villa, Chelsea, Tottenham- now have as their principal objective the making of money for their shareholders.”

-David Conn, The Football Business, p154.

1. Introduction

In North America it is commonplace, especially among economists, to think of the owners of professional sports teams as profit maximisers (see e.g. Fort and Quirk (1995)). In Europe, however, this assumption has been treated somewhat sceptically. In an influential paper Sloane (1971) argued that a plausible characterisation of the owners of…...

Similar Documents

Making Money Off Complaints

...Making money off complaints One software company holds weekly staff meetings to build morale and allow for status reports from each department. One part of their meetings is the report on how many customer problems they rectified the past week. If the number increased, the group was given praise. When asked why they praise increased problem calls, as opposed to working to fix those problems in the software or documentation, the owner said that they charge for each call, so it is a way to increase their income. In other words, instead of making the customer completely satisfied with the product, they preferred some dissatisfaction, so they could fix the problem and make extra money from it. This software package was a high-ticket, expensive application that was mainly sold to small companies. They also charged $50 for a user manual for the software. Since the customers made a substantial investment in the software, they wanted to continue using it. But I wonder how much ill-will was created, even if the application usually performed well. Complaints that fall on deaf ears Have you ever experienced poor service or purchased a defective product and complained about it, only to have your complaints fall on deaf ears? Many companies that have plenty of business feel they don’t need to bother with complainers. These businesses become very independent, especially if they have a product or service in demand. Some continue to succeed, even though they ignore customer......

Words: 263 - Pages: 2

Football

...Football refers to a number of sports that involve, to varying degrees, kicking a ball with the foot to score a goal. The most popular of these sports worldwide is association football, more commonly known as just "football" or "soccer". Unqualified, the word football applies to whichever form of football is the most popular in the regional context in which the word appears, including association football, as well as American football, Australian rules football, Canadian football, Gaelic football, rugby league, rugby union[1] and other related games. These variations of football are known as football codes. Various forms of football can be identified in history, often as popular peasant games. Contemporary codes of football can be traced back to the codification of these games at English public schools in the eighteenth and nineteenth century.[2][3] The influence and power of the British Empire allowed these rules of football to spread, including to areas of British influence outside of the directly controlled Empire,[4] though by the end of the nineteenth century, distinct regional codes were already developing: Gaelic Football, for example, deliberately incorporated the rules of local traditional football games in order to maintain their heritage.[5] In 1888, The Football League was founded in England, becoming the first of many professional football competitions. In the twentieth century, the various codes of football have become amongst the most popular team sports in......

Words: 2571 - Pages: 11

The Theories of Making Money

...The Theories on Making Money There has always been a debate over whether socialism or capitalism is the most prosperous economical system. Throughout the years there have been several theories which show favoritism to each system, and with each of these theories there are the opponents. As the debate raged on, the countries that were opposed to one system or the other now use some portion of each system. In 2013 even countries like China and North Vietnam, who are socialist states, are applying forms capitalism and countries like the United States have adopted socialist practices. While explaining the difference between capitalism and socialism we will find out that as the world mixes with each other personally they will also mix economically by convergence. While researching these two topics I found that there is one major factor that each economical system has in common. Governments have chosen to use these systems to rule the people of their countries. It doesn’t matter what each systems in tells, the common factor was that the governments that uses each system believes that it is the only system to use. The differences between capitalism and socialism are so great that entire countries would not use the others system due to past beliefs. Socialism is based on the beliefs that government owns the means of production, which reduces the need for competition between companies. It is intended to provide goods to all people at a reasonable price regardless...

Words: 704 - Pages: 3

Making Money on Secondlife

....staring at the sexy people in the dance floor...shakes her curves seductively as she slides down the pole...reaches the bottom and sucks her fingers devilishly thinking about how naughty she’s looking...smiles and winks at the witness eyes as she keeps dancing grabs the pole and leans back holding all her body just with one hand as she slides her hands down her breasts reaching her skirt’s waist…keeps going down till she reaches the hem…wraps the thin fabric around her fingers and pulls it slowly up showing her sexy underwear…let it go to keep sliding her hands down her leg as she lifts it up putting special emphasis in her lustful curves. slides her hands under the thing fabric of her thong…rubs her soft and wet skin with one finger making it even more wet and hot… takes her wet and naughty finger to her mouth and starts licking it…tasting her own wetness…sucks it softly and stares at the sexy people in the stage wondering if they are feeling as hot as she is. loudly as she grinds her wet laced slit on the pole , running her tongue up it tasting her own wetness whoops and makes her way to krystal Oskar and eyes her and slowly peals off her hip and drops it on his nose revealing all of her dark nipples “Thank you for the sexy tip” ------------- closing her eyes to the sensation of the touch of the steal pole against her warm silky fur climbs up the pole showing a seductive smile… reaches the top and spreads her legs placing her body against the hard cold steel showing...

Words: 1235 - Pages: 5

Making Money for the Day After Tomorrow

...MAKING MONEY FOR THE DAY AFTER TOMORROW Microsoft Corporation is one of the biggest Corporation in our generation, it was owned and run by Mr. Bill Gates. For me as a business course student taking up Bachelor of Science in Accountancy, Making money for the day after tomorrow. Means like this: if the sales division of Microsoft in China makes money for today, and the product division makes money for tomorrow. But in the other hand the research division makes money for the day after tomorrow. The Microsoft Research Asia serves as a Microsoft’s reserve – the talent accumulated here will lead to wealth down the road. Microsoft Research Asia is leading the wealth and future of Microsoft Corporation due to its advance research and development in the world. With the help of the computer literate experts whose working hard to achieve its goal to the brighter and better future of our technology. Due to an effort to “stock” its reserves Microsoft Research Asia sends a representative each year to all leading colleges and universities that provides teaching in a degree that specialized in computer literate major such as computer sciences and information technology. For the vast demand of computer literate student across the world with the help of the said universities and college across China Microsoft Research Asia is now searching for a talented lucky students to participate in the said seminars that conducted by the Microsoft Research Asia representatives. In this......

Words: 788 - Pages: 4

Money Laundering in Football

...Money laundering in football - lessons for the sports industry on Wednesday, 21 December 2011. Hits 2915 Written By Kevin Carpenter[->0] Money laundering in football is not a new phenomenon but the poor financial health of world football overall has lead to increased scrutiny in recent years by leading organisations such as Transparency International ('TI') (the world’s leading non-governmental anti-corruption organisation) and the Financial Action Task Force (‘FATF’) (an independent inter-governmental body that develops and promotes policies to protect the global financial system against money laundering and terrorist financing). Indeed TI has suggested that, ”Vulnerabilities in the sector's financing and due diligence practices, culture and structure are seen…as creating an environment conducive to money laundering by organised crime.“ The concerns have been compounded by two recent high profile cases in the UK then this makes it a good time to analyse this ever present threat. What is money laundering and why is football a target? Money laundering is the process by which proceeds of crime (so called "dirty money" or “criminal property”) are changed so that the proceeds appear to have come from a legitimate source. The proceeds of crime is money, or other assets, that have been acquired or generated through criminal activities in the UK or abroad. There are three main areas of vulnerability in the football sector which can be identified: The sector’s structure –......

Words: 1049 - Pages: 5

About Making Money from Internet

...mohit2410 , jan. 2011 | 44 Pages (10895 Words) | 686 Views| | | This is a Premium essay for upgraded members Upgrade to access full essay Guide to Make Money on the Internet in 2010 .Pdf (1) After 15 years, 5000+ hours, hundreds of books and resources, many thousands of dollars and countless mistakes, arrives the one and only guide book by Guna Deivendran, Founder of StartupBooster.com for making money online. Make Money Online With Startup Booster dot com Bringing Money Making Resources Together to Provide You with the Right Strategy and Tools to Make Money Online in 2010 and Beyond Guna Deivendran http://www.startupbooster.com May 2010 Make Money Online With Startup Booster dot Com Copyright No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanically, photocopying, recording, or otherwise, without written permission to d istribute of the author. Printing of this book is allowed for personal use only. Disclaimer W hile the author of this book have made reasonable efforts to ensure the accuracy and timelines of the information contained herein, the author assume no liabili ty with respect to loss or damage caused or alleged to be caused by reliance on any information contained herein and disclaim any and all warranties, expressed or implied, as to the accuracy or reliability of said information. Trademarks All trademarks displayed throughout this book are trademarks of...

Words: 295 - Pages: 2

How to Save Money from Allowance

...then writing the paper very efficient. Your outline page must include your: * Paper Title * Thesis statement * Major points/arguments indicated by Roman numerals (i.e., I, II, III, IV, V, etc.) * Support for your major points, indicated by capital Arabic numerals (i.e., A, B, C, D, E, etc.)   Roman numeral I should be your “Introduction”. In the introduction portion of your paper, you’ll want to tell your reader what your paper is about and then tell what your paper hopes to prove (your thesis). So an Introduction gives an overview of the topic and your thesis statement.   The final Roman numeral should be your “Conclusion”. In the conclusion, you summarize what you have told your reader.   Following are 3 sample outlines, from actual student papers. YOUR outline can be MORE detailed, or might be LESS detailed. Remember that a good outline makes writing easier and more efficient.   Sample Outline #1  Title: Frederick Douglass Thesis: Frederick Douglass played a crucial role in securing the abolition of slavery and equality of African-American rights through his actions, ideas, and efforts as a lecturer, author/publisher, and politician.                I.     Introduction A.    Thesis B.    Roles/Arguments             II.     Douglass as Lecturer A.    History as slave and acquisition of education 1)     He “experienced slavery” 2)     Literacy allowed expression B.    Early lectures, including initial speech before Garrison 1)     Success of initial......

Words: 1185 - Pages: 5

Football

...whether or not college football players should get paid to play football. I feel like this is a topic that a lot of football players that is transitioning from high school to college discuss frequently. There has been a few controversies on if college football players have been paid under the table. When you hear that they have been paid under the table, it means that either the college they have chosen has given them money secretively, the head football coach paid them out of their own pockets, or even someone they know personally has paid them to play for that school. College football players should not be paid to play football. There are many reasons on why they should not get paid. When you hear a certain college name, the first thing you hear come out of someone’s mouth is something about how good or bad their football team is. Football players are shown a lot of attention. On their campuses they are very well known, whether or not if they play in the games or sit on the sidelines. Most college football players end up getting a full ride to school because they play football. If they are not paying for school out of pocket, they shouldn’t get paid to do something they are supposed to do. Another reason why they shouldn’t get paid to play football is the fact that other teams that play sports on the campus don’t get paid. Why out of all teams, football should be the one to get paid. For example, a baseball team on the campus might be better than the football team but......

Words: 494 - Pages: 2

Make Money from Home

...HOW TO RUN A SUCCESSFUL LAUNDRY BUSINESS FROM HOME http://www.onwealthclub.com1 INTRODUCTION A civil servant once came to share a happy success testimonial to a Christian group I belong to. In his testimonial, he shared about how he and his wife have been searching for a business to start against his retirement. Being salary earners all their lives, they found it difficult to identify a business to start. One day, his wife came to him and suggested that they should start LAUNDRY BUSINESS. To cut the long story short, this man’s joyful testimony boils down to how surprise he was to discover that such business generates incredible income for them today. His main happiness is on how he can comfortably retire to a thriving business. Another friend of mine who presently works in a bank and owns a laundry outfit also shared his amazing experience in laundry business. Being one of the victims of the several university strike actions in the nineties, he out of boredom applied for a job in a laundry workshop. According to him that laundry workshop occupied a warehouse under a two storey building somewhere in Surulere, Lagos state. While working there, he developed interest in laundry business, which resulted to him having a laundry outfit even while working in the bank today. The same laundry outfit he worked in back then now has over eight different branches in Lagos state and has bought the entire two storey building where they were occupying the warehouse in the nineties. To...

Words: 2069 - Pages: 9

Making Glue from Milk

...“JACKFRUIT SAP AS ONE OF THE ADDITIVE COMPONENTS IN MAKING GLUE” Submitted in partial fulfillment of the requirements in Research II Science Department (1st Shift) Iligan City National High School SY 2009-2010 Clyde Abaño Dave Louis Bardago Dindo Caminos Jean Claude Gocela Carmela Goc-ong Rebecca Matados Mrs. Annallee Q. Aron Research II Teacher TABLE OF CONTENTS Preliminary Page Pages Title page Approval Sheet Abstract Acknowledgement I. Introduction 1.1 Background of the Study 1 1.2 Statement of the Problem 2 1.3 Significance of the Study 2 II. Review of Related Literature 2.1 Review of Related Literature 3 2.2 Conceptual Framework 4 2.3 Theoretical Framework 4 2.4 Hypothesis 4 2.5 Definition of Terms 4 III. Methodology Materials and Equipments 5 Sample 5 Instrumentation 6 Procedure 6 Research Design 5 Statistical Test 6 IV. Results and Discussions ILIGAN CITY NATIONAL HIGH SCHOOL APPROVAL SHEET This research study entitled “Jackfruit Sap as an Additive Components in Making Glue” prepared by the Science Curriculum students namely Dave Louis Bardago, Dindo Caminos , Jean Claude Gocela , Clyde Abaño , Carmela Goc-ong, and Rebecca Matados PANEL Mrs. Annallee Q. Aron Research II Adviser ______________________________ ______________________________ Panel Member Panel......

Words: 1573 - Pages: 7

Making Money

...WORKS CITED ........................................................................................................................................................18 Federal CIO Council ISIMC NISSC Web 2.0 Security Working Group Page 3 Revision History Date 5/15/09 6/28/09 7/14/09 7/21/09 8/7/09 8/10/09 8/30/09 9/7/09 9/9/09 9/14/09 Revision 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 Description of Changes Initial draft release Major revision, including section changes, formatting changes, figures Revisions for formatting, reordering, improving document flow Revisions based on Web 2.0 Security Working Group (W20SWG) feedback. Revisions based on Network and Infrastructure Security Subcommittee (NISSC) feedback Initial comments from Federal CIO Council Initial release through Federal CIO Council Second release through Federal CIO Council Final release through Federal CIO Council Final Comments integrated Guidelines for Secure Use of Social Media by Federal Departments and Agencies Page 4 Acknowledgements The Web 2.0 Security Working Group operates under the authority of the Information Security and Identity Management Committee (ISIMC), as chartered by the Federal CIO Council (FCIOC). The Information Security and Identity Management Committee (ISIMC) is the principal interagency forum for identifying and recommending strategic high priority IT security and identity management initiatives to the FCIOC and Office of Management and Budget (OMB) that enable......

Words: 7347 - Pages: 30

The Business of Making Money

...The Business of Making Money So you want to make more money, but you don’t know how? This might be the response of most business owners in America today. In taking this course I learned what’s been referred to as King rule, that is, total revenues-total cost= profit. That’s how we make decisions in the business world. It’s so simple and efficient. Because we wake up every morning for money, it’s important to know how to get money. It’s essential to understand the equation and that is why I see it only fitting to discuss King rule in this assignment. Whether you’re a merchant or in a service based business basic principles of accounting and economics hold true. Those principles make up the King rule equation. Business owners are constantly looking for growth to increase their profit. Growth in business is measured from the sales/services provided by company. Simply, sell more and you will make more money. This truth leads owners into thinking that they must increase sells to make more money. But that’s only part of the equation; there is the cost variable that needs to be accounted for. If the business cuts it’s cost, profits will increase as well. This is very simple math and an easily understood concept. The question I raise is, which is more important? I think many business owners want to increase their sales because they see bigger numbers that way. The bigger the numbers, the more money you make! So if you’re working to make money (all of us are), then increasing...

Words: 1380 - Pages: 6

Earning Money from Amway

...Earning money from Amway Amway allows the sales executive to make money based on merchandising an array of high quality of products , the company practices direct selling practices. Merchandising includes selling and using the product and also includes sponsoring others into the business. The Amway Independent Business owner compensation plan rewards several levels of achievements which includes his own selling efforts and efforts of those who are registered under him. Immediate Income It is the profit from sales the difference between the costs incurred in buying the Amway inventory and the sales price . This income is realized immediately on sale of the item , Amway publishes a sample retail price for each product , however the seller can decide his own price. Performance Bonus Additional benefits are through performance bonus , the performance is tracked using 2 metrics PV- Is an unit amount allocated to each seller the higher the PV total , higher is the percentage(upto 25%) used in calculating your performance bonuses. BV-Is the dollar figure assigned to each product category, the total sales BV is multiplied by the total PV to determine the total performance bonus , to figure out the gross performance bonus we add the Pass-Up volume from the frontline customers registered from each sales person and then the calculation is done according to the schedule There are 2 ways to calculate the performance bonuses Personal Calculation Personal......

Words: 349 - Pages: 2

Football

...Football and society I am writing this blog in order to highlight the effects football has had on society and how society has changed or influenced football in a particular way. I have been a football fan for as long as I remember and it has been a huge part of my life. It has affected the way in which I think and also my physical health. If I was asked when I was young what I wanted to be when I grew up, I would give the same answer as the majority of my peers, which was to be a professional football player, playing for my favourite team. Which I’m sure made my father gravely disappointed as he would have imagined a completely different path for me, He would have liked me to be a professional footballer playing for his favourite team. The reason I say ‘Completely different path’ isn’t just an attempt to be humorous it is an indication as to how seriously some football fans take the game. Calling it a game in fact would almost be blasphemous to some who see it as more of a way of life. Opposing sides are no longer commonly referred to as competitors they are known as your Rivals, implying they are your enemy. Even in the lowest tiers of Football, where your average working person plays, the game has been taken so seriously that people have been badly injured through ‘off the field’ violence, Parents and supporters can be seen hurling obscene abuse at children and even members of the clubs partaking can be witnessed behaving in such a manner that they either have to be sent...

Words: 2546 - Pages: 11