Non-profit Sports Clubs Research Articles

Non-profit Sports Clubs in (Post)transitional Europe: A Sustainable Business Strategy, the Alternatives, and the Role of Stakeholders

The article has three purposes: to present the key determinants of a sustainable business strategy for non-profit sport clubs in (post)transitional Europe; to discuss the strategic alternatives emerging in this context; and to disclose how a range of stakeholders influences the clubs’ decisions on major sustainable issues. First, the author describes the production process and the specific social context, highlighting three key strategic dilemmas affecting sport clubs’ economic sustainability. The second part describes the five typical strategic orientations, revealing that the stronger engagement of private sponsors in a club’s strategy generally implies larger annual budgets. However, it also forces club managements to accept riskier strategies and focus more on sport results than on the local community. The article proposes a new classification of sport clubs’ strategies, provides empirical insight into the development process of sport clubs from post-transitional European countries, and explains why they retained their status as non-profit organizations.

Strategic collaboration in sports? Analyzing multiple cross-sectoral partnerships in non-profit boxing

ABSTRACT Rationale To address complexities in their environment, non-profit sports clubs enter partnerships with other organizations. While partnerships between non-profit sports clubs and commercial sports providers are increasing, research into these types of partnerships has been scarce. The aim of the present study is thus to analyze cross-sectoral partnerships between sports clubs and commercial providers to explore why, how, and with which outcomes these partnerships are formed. Research design A case study was conducted on a non-profit boxing club entertaining several cross-sectoral partnerships. Data were collected through semi-structured interviews, documents, and an in-person survey. Findings The results show inconsistencies in the strategic management of partnerships. Stable partnerships were based on personal relationships and trust rather than formal arrangements. Practical implications To ensure stable partnerships, clubs need to communicate constantly with their partners to form strong personal relationships. Shared goals should be formulated to create partnership value. Research contribution The study highlights the extent of strategic collaboration in sports.

Organizational capacity building in non-profit sport clubs: exploring the role of competition as a capacity building stimulus

ABSTRACT Research question Non-profit sport clubs are operating in an increasingly competitive market due to the growth of the for-profit sport sector and changes in sport participation patterns. To counteract competition, clubs are expected to take strategic action by investing in their organizational capacities. The aim of the present study is to explore if and how perceived competition from other organizations acts as an external capacity building stimulus for non-profit sport clubs. Research methods Longitudinal data were drawn from a nationwide online survey of non-profit sport clubs in Germany between the years 2011 and 2020 (ranging between n = 1366 and n = 5315 observations). Results and findings The results highlight that clubs faced with competition from commercial providers are driven to invest in paid staff, whereas the number of volunteers’ decreases and clubs are less likely to break even. Clubs faced with competition from other clubs are less likely to report having a strategic concept. The possession of club-owned facilities and gyms remains unaffected. Implications The findings reveal the limited effects of competition on the development of organizational capacities, with significant effects occurring only in the human resource capacity as a driver of professionalization. Implications for theory and practice are discussed.

Good governance and professionalisation of non-profit sport clubs: a resource dependency perspective

Whereas literature on non-profit sport organisations highlights a trend towards increased professionalization due to systemic expectations and pressure (Klenk et al., 2017), non-profit sport clubs still struggle with peculiar challenges related to the development their activities. They exist and develop thanks to an important contribution of voluntary staff driven by intrinsic motivation factors. Compared to for-profit companies or national sport governing bodies (NSGBs), they hardly rely on a competitive budget and they face financial vulnerability (Cordery et al., 2018). For instance, the mean budget for non-profit sport clubs in Switzerland is approx. CHF 60’000 (Lamprecht et al., 2017) whereas the budget of the umbrella federation, Swiss Olympic is approx. CHF 70 million (Swiss Olympic, 2019) and the mean budget of the affiliated NSGBs is approx. CHF 10 million (Kempf et al., 2019). Their capacity to respond to systemic pressure by resource acquisition and retention is limited. The good governance narrative emerged in the late1980s with the reform of the corporate and public sectors as a cure for mismanagement and unethical behaviour. In the field of sport, the concept became popular in the aftermath of corruption scandals in large international sport organisations and has led the creation of complex and demanding standards (Chappelet & Mrkonjic, 2019). To date, non-profit sport clubs are rather immune to good governance expectations and only a handful of initiatives that focus on the preservation of their social and economic impact address the topic (see Kirkeby, 2016). A reflection on their capabilities to effectively implement standards such as democracy or accountability is missing. This contribution investigates good governance and professionalization of non-profit sport clubs from a theoretical perspective. Starting with the hypothesis that non-profit sport clubs struggle to respond to systemic pressure because they lack resources and that acquiring and maintaining new resources is costly, this contribution builds on strategic management and resource dependency theory to analyse the challenges related to the implementation of good governance standards and develops strategic responses.

Professionalisation of sports clubs

Sports clubs play a crucial role as they promote (elite) sport and physical activity and fulfill important societal functions. At the same time, sports clubs are confronted with manifold challenges related to developments in society and sport. Therefore, sports clubs tend to professionalise, a process by which sports clubs transform from volunteer-driven to increasingly business-like organisations (e.g., implement paid work, use management tools, restructure their club) to address these problems. In this symposium - an initiative of the Research Network in Sportmanagement Switzerland - the phenomena of professionalisation will be addressed from multiple perspectives by discussing the triggering causes, the transformative process, and the corresponding consequences with the overall objective of getting a more comprehensive understanding of professionalisation in sports clubs. Mrkonjic addresses good governance and professionalisation of non-profit sport clubs and Stieger et al. analyse professionalisation and its consequences for the governance of sports clubs in semi-professional team sports. Mustafi et al. focus on the transfer market for non-big five soccer clubs of Swiss Super League and Schulz et al. examine expectations of voluntary sports clubs with regard to support services of sports federations.

The perceived financial situation of nonprofit sports clubs explained by objective financial measures

ABSTRACT In surveys across countries, nonprofit sports clubs report their perceived financial situation using some form of Likert scale; however, it is unclear what this subjectively reported rating reflects. The purpose of this study is to examine the link between objective financial measures and club officials’ perceptions of the financial situation. The main research question is: What objective financial measures best reflect the level and changes in the perceived financial situation of nonprofit sports clubs? The study used panel data from four consecutive waves of a German sports club’s panel (n = 2,859). The clubs’ financial situation was assessed on a 6-point scale (1 = no problem; 6 = existential problem). This subjective measure was juxtaposed with several objective financial measures drawn from the literature and financial theories. These measures include general financial measures like interest coverage, margin, and revenue diversification, but also measures specifically developed for the nonprofit sports clubs’ context. The results of regression analyses show that operating margin, revenue diversity, the share of facility expenses relative to total expenses, and administrative expenses relative to total revenue significantly explained the subjectively rated financial situation. The findings suggest that objective financial measures are required to better understand the financial situation of sports clubs and design more targeted support programmes.

Exploring the Structural Relationships between Service Quality, Perceived Value, Satisfaction, and Loyalty in Nonprofit Sport Clubs: Empirical Evidence from Germany

Abstract: Nonprofit sport clubs encounter various challenges, including limited resources and a competitive environment. It is therefore vital to implement strategic management in order to ensure that the services provided to members are of top quality. This study explores the importance of service quality in determining perceived value, satisfaction, and loyalty, specifically for nonprofit sport clubs in Germany, collecting data from 24 sport clubs ( N = 427). The findings of the study indicated that (1) service quality has a major impact on perceived value, satisfaction, and loyalty, which demonstrates the significance of service quality as a determinant of perceived value, satisfaction, and loyalty; (2) perceived value is found to be a significant factor affecting satisfaction and loyalty as well as a mediator between service quality and satisfaction; and (3) satisfaction has a positive influence on loyalty and mediates the relationship between service quality and loyalty. The empirical results highlight the importance of understanding how the elements of service quality play a crucial role in the retention of sport club members.

Increasing Human Capital of Coaches—An Investigation Into Individual and Organizational Factors

Coaches play a vital role in providing sports programs. Investing in formal coach education can serve to increase coaches’ human capital, which in turn, has a positive effect on their coaching practice. The present study investigates factors influencing coaches’ intention to get training for their coaching activity on an individual and organizational level. Nationwide online surveys were conducted in Germany on both nonprofit sports clubs and coaches being active within these clubs. Data were analyzed using multilevel regression analysis on a sample of n = 2,384 coaches in n = 1,274 clubs. Results show that especially the expiring validity of the coaching license, aspects of personal development, and low transaction costs are crucial factors for the intention to obtain a qualification. The results lead to several implications for theory and practice. Clubs could enhance the qualification intention and, thereby, the quality of sports programs by appointing a contact person who informs about qualification possibilities.

Toward a Refined Insight Into the Importance of Volunteers’ Motivations for Need-Based Experiences, Job Satisfaction, Work Effort, and Turnover Intentions in Nonprofit Sports Clubs: A Person-Centered Approach

Toward a Refined Insight Into the Importance of Volunteers’ Motivations for Need-Based Experiences, Job Satisfaction, Work Effort, and Turnover Intentions in Nonprofit Sports Clubs: A Person-Centered Approach

Who are the decision-makers in non-profit sport clubs from transition countries?

The article discusses the hierarchies of decision makers in non-profit sport clubs. On the basis of data, collected in 73 sport clubs from four South-East European countries, author identifies: a) who carries the largest part of responsibility for the organizational performance; b) who has the most important influence on HRM activities; and c) are those results in relation with the hierarchies of interest groups. The results indicate that private sponsors’ involvement significantly increases in top quality clubs, while the interferences of volunteers, local community, the state and municipal authorities are stronger in lower ranked clubs. The greatest responsibility for the clubs’ performance is on coaches, athletes, and clubs' presidents. In the field of HRM the influences of the sports directors, sponsors' representatives and agents increase, while the influence of the clubs' presidents decreases with the level of quality. Volunteers’ interference in clubs’ activities stimulates presidents’ influence on HRM, decreases the degree of director’s performance responsibility, and decreases head coaches’ and sport directors’ influence on HRM. On the other hand, the interference of private sponsors puts more pressure on the functions of head coach and top management.

The stakeholder–performance relationship in nonprofit sport clubs: the case of South-Eastern European basketball clubs

This research aims to disclose how the influence of different stakeholder groups is reflected in the organizational performance of nonprofit sport clubs. ANOVA, principal component analysis and correlation analysis were employed on data from 73 South-Eastern European basketball clubs. The results show that private sponsors’ involvement positively correlates with the clubs’ top sport achievements and financial results. In contrast, the interference of volunteers, the local community, the state and municipal authorities in club activities positively correlates with the accomplishment of local-community-oriented goals and nonfinancial objectives. The implications offer empirical support in those countries where sport clubs still operate as nonprofits for altering policy to ensure that the providers of public funds become more active in terms of monitoring the effects of their donations and sponsorships or for stimulating policymakers to think about changing the legislative framework to encourage top sport clubs to transform into profit-oriented organizations.

Perceived Threats through COVID-19 and the Role of Organizational Capacity: Findings from Non-Profit Sports Clubs

(1) Background: The COVID-19 pandemic has forced non-profit sports clubs to shut their doors. As a consequence, neither sports activities nor social gatherings could take place for an indefinite period. This situation poses potential risks to sports clubs as clubs could lose members, volunteers, and revenue. The purpose of this study is to investigate how strong clubs have been affected so far by COVID-19 and which capacities help or hinder clubs in dealing with the crisis. (2) Methods: The study is based on large-scale primary data (n = 4295) collected among German sports clubs in autumn 2020. Three fractional regression models are applied to examine which organizational capacities are related to potential threats caused by COVID-19. (3) Results: Clubs perceive the risk of losing members as most threatening, followed by the challenge of retaining volunteers. Potential financial threats are perceived as smaller by clubs without their own sports facilities and paid employees. (4) Conclusions: Overall, sports clubs with a strong solidarity culture seem to be affected less by potential threats through COVID-19. To become more resilient to unexpected external influences, capacity building in specific areas of sports clubs should be considered. Support from public institutions and sports associations is needed.

The impact of perceived corporate social responsibility on value-in-use through customer engagement in non-profit sports clubs: the moderating role of co-production

ABSTRACT Research question Despite the increasing importance of customer engagement (CE) as a significant facet to facilitate increased profitability for organisations, little sport management research has examined antecedents and consequences of CE. Using the service-dominant logic as a theoretical framework, this study examines whether perceived corporate social responsibility (CSR) predicts value-in-use through CE, considering the moderating role of co-production. Research methods Participants (n = 483) were recruited from non-profit sports clubs in Iran. Structural equation modelling was applied to test the research model. Results and Findings The findings revealed positive associations between perceived CSR, CE, and value-in-use. Perceived CSR had a positive indirect effect on value-in-use through CE. Furthermore, co-production had a moderating effect on the relationship between perceived CSR and CE, where the relationship was stronger for individuals with higher co-production. Findings from this study suggest perceived CSR is a key antecedent of CE, highlighting the importance of co-production and CE in promoting value-in-use in non-profit sports clubs. Implications Non-profit sports clubs can co-create value by engaging customers through CSR. Findings from this study highlight the importance of CE and co-production in promoting value-in-use in non-profit sports clubs.

Entrepreneurship and Resilience in Spanish Sports Clubs: A Cluster Analysis.

Entrepreneurial orientation can be an effective response by sports clubs to manage a recession, such as the COVID-19 crisis. Therefore, its study can be fundamental to understand different ways of managing a recession. This study analyzes the entrepreneurial orientation of Spanish non-profit sports clubs to identify different groups and their profiles. The sample is composed of 145 Spanish non-profit sports clubs. Different validated scales have been used to analyze entrepreneurial orientation, business model adaptation, service quality, and economic and social performance (performance in social impact and performance in social causes). Entrepreneurial orientation is the variable used to differentiate the groups. This is made up of three dimensions: innovation, risk-taking, and proactivity. According to the results obtained, there are three groups of sports clubs according to their entrepreneurial orientation: non-entrepreneurs (n = 11), moderate entrepreneurs (n = 85), and strong entrepreneurs (n = 45). There are substantial differences between the three groups according to the adaptation of the business model, the perceived impact of COVID-19, and the returns analyzed. Strong entrepreneurs have considerably higher levels of business model adaptation, economic performance, social performance, and perceived service quality than non-entrepreneurs. Theoretical and practical implications have been drawn that can bring new information to the sports and organizational sector. For example, the diagnosis of the different profiles according to the level of entrepreneurship can be useful to propose strategies to improve performance. In this way, it can help to evaluate the return on the investment made by sponsors or governments in the organization.

Effects of Entrepreneurial Orientation and Passion for Work on Performance Variables in Sports Clubs

Entrepreneurial orientation and passion for work have been widely studied due to their effects on the behaviour and attitude of management teams in the short- and long-term. However, despite the influences of these variables on the sustainability and survival of an entity, there is a gap when considering the effects of these two performance variables in sports organisations. Therefore, the main objectives of this study were to understand the influences of entrepreneurial orientation and passion for work on service quality and sporting performance. To this end, 199 Spanish non-profit sports clubs were analysed using instruments with good psychometric properties. Data analysis was carried out using two complementary methodologies: hierarchical regression models and fuzzy-set qualitative comparative analysis. The findings show that innovation and risk-taking influence performance variables and that the inclusion of passion for work significantly increases the explanatory capacity of the model. On the other hand, it was also observed that entrepreneurial orientation dimensions and passion for work are part of the combination that allows the expected result to be explored to a greater extent. Theoretical and practical implications were drawn from these findings, which can be used to improve the economic and social sustainability of sport organisations. The study also provides useful information for managers and directors of sport organisations.

Willingness-to-Pay for Environmental Measures in Non-Profit Sport Clubs

To reduce global warming and climate change, the German government plans to implement a carbon tax, which will also affect sport organizations. This study investigates how much sport club members are willing to pay for environmental measures and how sport-specific, club-specific, environmental, and socio-demographic factors are associated with their willingness-to-pay. In 2019 and 2020, active adult sport club members in five team/racket sports were sampled using an online survey in Germany (n = 3036). The contingent valuation method was applied to estimate sport club members’ willingness-to-pay for environmental measures. Regression analyses were employed to investigate a set of factors that are associated with club members’ decision to pay at all and the amount of willingness-to-pay. The results show that 64.3% of respondents reported a positive willingness-to-pay. The average willingness-to-pay for environmental measures amounts to EUR 14.53 per year and to EUR 22.59 for those reporting a positive willingness-to-pay. The results of t-tests show that club members stating a positive WTP differ significantly from members who are not willing to pay anything in terms of sport-specific, club-specific, environmental, and socio-demographic factors. The logistic regression results indicate that the likelihood of reporting a positive willingness-to-pay increases with increasing environmental consciousness, educational level, weekly practice hours, identification and satisfaction with the club, and subjective well-being, while age has a U-shaped effect. The results of a Tobit model show that the amount of willingness-to-pay is positively determined by environmental consciousness, educational level, and satisfaction with the club. The findings suggest that the majority of club members are willing to pay higher membership fees for the implementation of environmental measures in sport clubs. Increasing members’ level of environmental consciousness through educational initiatives represents a way for sport policy and sport managers to help increase financial support for environmental measures among club members.

Does size matter? Entrepreneurial orientation and performance in Spanish sports clubs

Despite its importance, entrepreneurship in organizations has not been widely addressed in the sports association sector (sports clubs). In this context, this study analyses the relationships of entrepreneurial orientation and club size with the economic and sporting performances of Spanish non-profit sports clubs. To this end, a total of 300 sports clubs were analyzed through fuzzy-set qualitative comparative analysis. The results show that risk-taking and innovation are causal conditions for high levels of economic and sporting performance, and large club size is both a core and a causal condition. Practical implications and intervention proposals are addressed, and their derivation considered the results obtained and the existing literature.

PROBLEM DEFINIRANJA »USPJEŠNOSTI« U NEPROFITNIM SPORTSKIM ORGANIZACIJAMA: PRIMJER KOŠARKAŠKIH KLUBOVA IZ JUGOISTOČNE EUROPE

The article examines the problem of ambiguities in the process of measuring the performance in non-profit sports clubs which is one of the main causes for disputes between various stakeholders in the process of determining organizational strategies and strategic objectives. The first objective is to use the non-profit basketball clubs as an example, to describe their specifics from the aspect of organizational performance and to reveal what exactly, beside the financial and sports results, is necessary to take into account for the performance evaluation in these organizations. The second objective is to disclose non-profit sport clubs’ actual strategic orientations. The explorative factor analysis performed on performance estimations of 15 organizational goals was obtained on a sample of 73 non-profit basketball clubs from four South-Eastern European countries. The results indicate two basic strategic orientations of non-profit basketball clubs, namely financial-competitive and non-financial-recreational orientation. The findings may be helpful to clubs’ managements in the process of defining missions and hierarchy of strategic goals for their organizations.

Connecting Customer Knowledge Management and Intention to Use Sport Services Through Psychological Involvement, Commitment, and Customer Perceived Value

Despite the increasing importance of customer knowledge management (CKM) as a strategic resource for sport service organizations, little sport management research has examined the link between CKM and consumers’ intention to use sport services. Using the psychological continuum model as the theoretical framework, this study examines whether CKM predicts consumers’ intention to use sport services. Participants (N = 686) were recruited from nonprofit sports clubs in Urmia, Iran. Structural equation modeling results revealed positive relationships between CKM, psychological involvement, perceived value, commitment, and intention to use. Furthermore, both CKM and psychological involvement had positive indirect effects on intention to use through perceived value and commitment. Findings from this study highlight the importance of psychological involvement and perceived value in promoting intention to use sport services at nonprofit sports clubs and CKM’s role as a key antecedent.

Positive Externalities from Professional Football Clubs in the Metropolitan Rhine-Ruhr, Germany: Trickle-Down Effects Associated with Promotion and Relegation

Hosting sport events is costly, but the positive impact of hosting sport events has not been studied well. We consider the promotion of physical activity, known as the trickle-down effect, to be a new dimension of this kind of impact. Using exogenous variations in promotion and relegation in the Bundesliga 1, we test the effect of the presence of a Bundesliga 1 club on local non-profit football club membership. Using German city-level annual non-profit sport club membership data from the metropolitan Rhine-Ruhr, we group cities with experience of either promotion or relegation as treatment cities and other cities as the comparison group. Difference-in-difference analyses show that promotion (using a strict definition of promotion) of local professional football clubs increases non-profit football club membership by 14% while relegation does not affect membership. The presence of Bundesliga 1 clubs in a city increases non-profit football club membership by 11%. Falsification tests support the idea that the impact of promotion on membership results in a net increase in membership.