Corporate Governance of Professional Football Clubs

1376 Words6 Pages
• Set out the main stakeholders of football clubs. Describe their ‘stake’ in the organization and assess the legitimacy of their interests. The main stakeholders of football clubs are fans, shareholders, employees, players and coaches, media, institutions, sponsors, players' agents, other clubs, Interests groups, government and banks. It is a very complicate task, so challenging, because it is obvious that shareholders expecting return on investment will not appreciate expenses for new facilities for employees. All stakeholders' objectives cannot be met, just a part of it. To achieve that, the top management of these clubs has to balance their own objectives as well, because achieving its objectives may have the cost of leaving a stakeholder behind. Fans expect that the game they bought the ticket of will be a good show. Fans want to appreciate a good football game with its special stadium atmosphere. For this experience to be comfortable, fans expect that clubs offer them all the equipment’s required in stadium. Fans do not care about the size of the net profits of the club they support. But football fans have an emotional link with `their' team, a kind of identification. Also Clubs agree that fans are essential for them and that they affect their strategy, that's why they are considered as very important stakeholders. But where does this consideration come from? Every manager will highlight that their everyday moral and psychological support is a necessary contribution and a key element in the team success. It is difficult to measure how the crowd can influence the team success but there is no doubt that this physical support is important on match day. But fans also represent an important part of clubs' income. • What are the key governance issues each of these stakeholder groups might have? Bribery and corruption risk continues to be a big issue for
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