How complexity affects and shapes the dynamics in the football industry

Titolo Rivista CORPORATE GOVERNANCE AND RESEARCH & DEVELOPMENT STUDIES
Autori/Curatori Claudio Nigro, Simona Curiello, Enrica Iannuzzi, Enrico Lubrano, Vincenzo Sanguigni, Raffaele Silvestri, Rosa Spinnato
Anno di pubblicazione 2024 Fascicolo 2024/2
Lingua Inglese Numero pagine 35 P. 121-155 Dimensione file 0 KB
DOI 10.3280/cgrds2-2024oa16966
Il DOI è il codice a barre della proprietà intellettuale: per saperne di più clicca qui

Vedi l'articolo Scarica l'articolo open access

FrancoAngeli è membro della Publishers International Linking Association, Inc (PILA), associazione indipendente e non profit per facilitare (attraverso i servizi tecnologici implementati da CrossRef.org) l’accesso degli studiosi ai contenuti digitali nelle pubblicazioni professionali e scientifiche.

This paper examines the complex dynamics at play within the football industry, highlighting how intricate and auto-catalytic processes impact and shape its operational landscape. By examining the interplay and mutual interactions in the objective functions (1) and the transition stages in the value chain (2), the study tries to shed light on the very diverse range of interactions characterising football industry. By examining the interplay and mutual interactions within the objective functions system (1), a source of complexity was found due to the impossibility of isolating the effect of a single variable on the entire structure. Then, the study analysed the transition stages in the value chain (2), from lower levels to elite competitions and vice versa, revealing the complexity that impacts the organisation, strategies, and decision-making of football clubs. The paper aims to evaluate the contributions of different components, such as economic and financial requirements and team achievements, to the self-sustaining nature of the football ecosystem. By examining these two themes, this article aims to provide a critical analysis of the intricacies of the football industry. This analysis should aid in identifying potential avenues for future research and determining the managerial frameworks and mechanisms required to navigate this complex industry. * Despite being a collaborative effort, §§ 1, 3.3 and 4 are attributed to Claudio Nigro; § 3.1 to Simona Curiello; §§ 3.3.1, 3.3.2 and 3.3.3 to Enrica Iannuzzi; §§ 3.2, 3.2.1 and 3.2.2 to Enrico Lubrano; §§ 2, 3 and 5 to Vincenzo Sanguigni; § 3.4 to Raffaele Silvestri; §§ 2.1, 2.2, 2.3, 3.1.1 and 3.1.2 to Rosa Spinnato.

This paper examines the complex dynamics at play within the football industry, highlighting how intricate and auto-catalytic processes impact and shape its operational landscape. By examining the interplay and mutual interactions in the objective functions (1) and the transition stages in the value chain (2), the study tries to shed light on the very diverse range of interactions characterising football industry. By examining the interplay and mutual interactions within the objective functions system (1), a source of complexity was found due to the impossibility of isolating the effect of a single variable on the entire structure. Then, the study analysed the transition stages in the value chain (2), from lower levels to elite competitions and vice versa, revealing the complexity that impacts the organisation, strategies, and decision-making of football clubs. The paper aims to evaluate the contributions of different components, such as economic and financial requirements and team achievements, to the self-sustaining nature of the football ecosystem. By examining these two themes, this article aims to provide a critical analysis of the intricacies of the football industry. This analysis should aid in identifying potential avenues for future research and determining the managerial frameworks and mechanisms required to navigate this complex industry. * Despite being a collaborative effort, §§ 1, 3.3 and 4 are attributed to Claudio Nigro; § 3.1 to Simona Curiello; §§ 3.3.1, 3.3.2 and 3.3.3 to Enrica Iannuzzi; §§ 3.2, 3.2.1 and 3.2.2 to Enrico Lubrano; §§ 2, 3 and 5 to Vincenzo Sanguigni; § 3.4 to Raffaele Silvestri; §§ 2.1, 2.2, 2.3, 3.1.1 and 3.1.2 to Rosa Spinnato.

Parole chiave:; complexity; football value chain; transition stages; interplays in objective functions

  1. Alaminos D., Esteban I., Fernández-Gámez M.A. (2020). Financial performance analysis in European football clubs. Entropy, 22(9), 1056. DOI: 10.3390/e22091056
  2. Allison N. (2013). Going beyond on-pitch success: fan engagement as a catalyst for growth. Working Paper. London, UK: Birkbeck, University of London.
  3. Ashby W.R. (1968), “Principles of Self-Organizing System”. In Buckeley W., Systems Research of Behavioral Science. New York: Aldine Transaction.
  4. Ashby W.R. (2006). “L’autoregolazione e il carattere indispensabile della varietà”. In Emery F.E., La teoria dei sistemi. Presupposti, caratteristiche e sviluppi del pensiero sistemico, VII ed. Milano: FrancoAngeli.
  5. Ashton J.K., Gerrard B., Hudson R. (2003). Economic impact of national sporting success: evidence from the London stock exchange. Applied Economics Letters, 10(12): 783-785. DOI: 10.1080/1350485032000126712
  6. Barajas Á., Fernández-Jardón C.M., Crolley L. (2005). Does Sports Performance Influence Revenues and Economic Results in Spanish Football? MPRA Paper 3234, University Library of Munich, Germany.
  7. Barile S. (2006). “Introduzione alla dinamica della varietà informativa”. In Barile S. (a cura di), L’impresa come sistema. Contributi sull’Approccio Sistemico Vitale. Torino: Giappichelli.
  8. Benkraiem R., Le Roy F., Louhichi W. (2011). Sporting Performances and the Volatility of Listed Football Clubs. International Journal of Sport Finance, Fitness Information Technology, 6(4): 283-297. DOI: 10.3917/resg.091.0083
  9. Bonazzi G. (2002). Come studiare le organizzazioni. Bologna: il Mulino.
  10. Caglio A., Laffitte S., Masciandaro D., Ottaviano G.I. (2022). Has Financial Fair Play Changed European Football?. Baffi Carefin Centre Research Paper, 189. DOI: 10.1016/j.serev.2023.100018
  11. Carmichael F., McHale I., Thomas D. (2011). Maintaining market position: team performance, revenue and wage expenditure in the English premier league. Bulletin of Economic Research, 63(4): 464-497. DOI: 10.1111/j.1467-8586.2009.00340.x
  12. Cerqua A. (2014). If You Get Knocked Down, How Long Before You Get Up Again? International Journal of Sport Finance, 9: 284-304.
  13. Clarkson B., Philippou C. (2022). Gender diversity and financial sustainability in professional football: a competitive strategy and proposed interdisciplinary research agenda. Managing Sport and Leisure, 1-5. DOI: 10.1080/23750472. 2022.2089204
  14. Deneubourg J.L., Goss S. (1989) Collective patterns and decision-making. Ethology Ecology & Evolution, 1(4): 295-311. DOI: 10.1080/08927014.1989.9525500
  15. Di Simone L., Zanardi D. (2021). On the relationship between sport and financial performances: an empirical investigation. Managerial Finance, 47(6): 812-824. DOI: 10.1108/20426781311316889
  16. Dimitropoulos P., Scafarto V. (2021). The impact of UEFA financial fair play on player expenditures, sporting success and financial performance: Evidence from the Italian top league. European Sport Management Quarterly, 21(1): 20-38. DOI: 10.1080/16184742.2019.1674896
  17. Dimitropoulos P.E., Limperopoulos V. (2014). Player contracts, athletic and financial performance of the Greek football clubs. Global Business and Economics Review, 16(2): 123. DOI: 10.1504/GBER.2014.060181
  18. Dolles H., Söderman S. (2005). Ahead of the Game - The Network of Value Captures in Professional Football: Working Paper 05/5.
  19. Esposito De Falco S., Gatti C. (a cura di) (2012). La consonanza nel governo dell’impresa. Profili teorici e applicazioni. Milano: FrancoAngeli.
  20. Fort R., Quirk J. (1995). Cross-subsidization, incentives, and outcomes in professional team sports leagues. Journal of Economic literature, 33(3): 1265-1299.
  21. Frenger M., Emrich E., Geber S., Follert F., Pierdzioch C. (2019). The Influence of Performance Parameters on Market Value. Diskussionspapiere des Europäischen Instituts für Sozioökonomie eV, n. 30. DOI: 10.22028/D291-32284
  22. Galariotis E., Germain C., Zopounidis C. (2017). A combined methodology for the concurrent evaluation of the business, financial and sports performance of football clubs: the case of France. Annals of Operations Research, 266(1-2), 589-612. DOI: 10.1007/s10479-017-2631-z
  23. Galariotis E., Germain C., Zopounidis C. (2018). A combined methodology for the concurrent evaluation of the business, financial and sports performance of football clubs: the case of France. Annals of Operations Research, 266(1-2): 589-612. DOI: 10.1007/s10479-017-2631-z
  24. Golinelli G.M. (2000). L’approccio sistemico al governo dell’impresa, Vol. I. Padova: Cedam.
  25. Gonçalves R.S., Mendes R.C., Henriques F.M., Tavares G.M. (2020). The influence of sports performance on economic-financial performance: An analysis of Brazilian soccer clubs from 2013 to 2017. Contextus–Revista Contemporânea de Economia e Gestão, 18: 239-250. DOI: 10.19094/contextus.2020.44392
  26. Grehaigne J.F., Bouthier D., David B. (1997). Dynamic-system analysis of opponent relationships in collective actions in soccer. Journal of Sports Sciences, 15(2): 137-149. DOI: 10.1080/026404197367416
  27. Grundy T. (1998). Strategy, value and change in the football industry. Strategic Change, 7(3): 127-138.
  28. Havran Z. (2018). The effect of investing in buying players (signing and salary expenses) on sport companies’ sport and financial performance. Economics and Business Studies. DOI: 10.18427/iri-2018-0061
  29. Hordijk W. (2013). Autocatalytic sets: From the origin of life to the economy. BioScience, 63(11): 877-881. DOI: 10.1525/bio.2013.63.11.6
  30. Jessop A. (2006). A measure of competitiveness in leagues: a network approach. Journal of the Operational Research Society, 57(12): 1425-1434. DOI: 10.1057/palgrave.jors.2602122
  31. Kahneman D., Tversky A. (2013). Prospect Theory: An Analysis of Decision Under Risk. World Scientific Handbook in Financial Economics Series, 99-127. DOI: 10.1142/9789814417358_0006
  32. Kaya F. (2023). Sportive and Financial Performance Analysis of Football Clubs by Using MULTIMOOSRAL Method: An Application on Football Clubs Traded. In Borsa Istanbul Conference: International Conference on Eurasian Economies.
  33. Kominek J., Scheffran J. (2012). Cascading processes and path dependency in social networks. In Transnationale Vergesellschaftungen. Springer VS, pp. 1288-auf.
  34. Kringstad M., Olsen T.-E. (2015). Can sporting success in Norwegian football be predicted from budgeted revenues? European Sport Management Quarterly, 16(1): 20-37. DOI: 10.1080/16184742.2015.1061032
  35. Lawton S.B., Lawton W.H. (1979). An Autocatalytic Model for the Diffusion of Educational Innovations. Educational Administration Quarterly, 15(1): 19-46. DOI: 10.1177/0013131X7901500103
  36. Miragaia D., Ferreira J., Carvalho A., Ratten V. (2019). Interactions between financial efficiency and sports performance: Data for a sustainable entrepreneurial approach of European professional football clubs. Journal of Entrepreneurship and Public Policy, 8(1): 84-102. DOI: 10.1108/JEPP-D-18-00060
  37. Morin E. (2007), “Le vie della complessità”. In Bocchi G., Ceruti M., La sfida della complessità. Milano: Bruno Paravia Editori.
  38. Nadvi K. (2011). Labour standards and technological upgrading: competitive challenges in the global football industry. International Journal of Technological Learning, Innovation and Development, 4(1-3): 235. DOI: 10.1504/IJTLID.2011.041906
  39. Petukhov A.Y. (2014). Modeling of branched chain reactions in political and social processes. Global Journal of Pure and Applied Mathematics, 11(5): 3401-3408. DOI: 10.5829/idosi.wasj.2014.30.10.14147
  40. Pinnuck M., Potter B. (2004). The financial performance of AFL football clubs, Working Papers, Deakin University, Department of Economics.
  41. Pinnuck M., Potter B. (2006). Impact of on-field football success on the off-field financial performance of AFL football clubs. Accounting and Finance, 46(3): 499-517. DOI: 10.1111/j.1467-629X.2006.00179.x
  42. San Miguel M., Toral R. (2020). Introduction to the chaos focus issue on the dynamics of social systems. Chaos: An Interdisciplinary Journal of Nonlinear Science, 30(12), 120401. DOI: 10.1063/5.0037137
  43. Rohde M., Breuer C. (2016). Europe’s Elite Football: Financial Growth, Sporting Success, Transfer Investment, and Private Majority Investors. International Journal of Financial Studies. 4(2): 12. DOI: 10.3390/ijfs4020012
  44. Room G., Spence A., Evangelou E., Zeppini P., Pugliese E., Napolitano L. (2017). Dynamics of cumulative innovation in complex social systems (DCICSS). University of Bath.
  45. Rossi M., Thrassou A., Vrontis D. (2013). Football performance and strategic choices in Italy and beyond. International Journal of Organizational Analysis, 21(4): 546-564. DOI: 10.1108/IJOA-04-2013-0659
  46. Samagaio A., Couto E.B., Caiado J. (2009). Sporting, financial and stock market performance in English football: an empirical analysis of structural relationships, CEMAPRE Working Papers 0906, Centre for Applied Mathematics and Economics (CEMAPRE), School of Economics and Management (ISEG), Technical University of Lisbon.
  47. Schwarz E.C., Hunter J.D. (2017). Advanced theory and practice in sport marketing. Routledge. DOI: 10.4324/9781351667630
  48. Kelso J.A. (1995). Dynamic Patterns. Cambridge: Mit Press.
  49. Simon H.A. (1985). Causalità, razionalità, organizzazione. Bologna: il Mulino.
  50. Thrassou A., Vrontis D., Kartakoullis N.L., Kriemadis T. (2012). Contemporary marketing communications framework for football clubs. Journal of Promotion Management, 18(3): 278-305. DOI: 10.1080/10496491.2012.696454
  51. Usai G. (2002). Le organizzazioni nella complessità. Lineamenti di teoria dell’organizzazione. Padova: Cedam.
  52. Vale L., Fernandes T. (2017). Social media and sports: driving fan engagement with football clubs on Facebook. Journal of Strategic Marketing, 26(1): 37-55. DOI: 10.1080/0965254X.2017.1359655
  53. von Bertallanfy L. (1967), General Theory of Systems: Application to Psychology. Social Science Information, 6: 125-136. DOI: 10.1177/053901846700600610
  54. Vrooman J. (2007). Theory of the beautiful game: the unification of european football. Scottish Journal of Political Economy, 54(3): 314-354. DOI: 10.1111/j.1467-9485.2007.00418.x
  55. Warias R., Block S. (2021). Influence of the Team Value of Professional Football Clubs on Their Success in Sports. In SHS Web of Conferences (129: 3035). EDP Sciences.
  56. Wicker P., Breuer C. (2015). How the Economic and Financial Situation of the Community Affects Sport Clubs’ Resources: Evidence from Multi-Level Models. International Journal of Financial Studies, 3(1): 31-48. DOI: 10.3390/ijfs3010031
  57. Wiener N., Rosenblueth A., Bigelow J. (1943). Behavior, Purpose and Teleology. Philosophy of Science, 10(1): 18-24. DOI: 10.1086/286788
  58. Yoshida M., Gordon B., Nakazawa M., Biscaia R. (2014). Conceptualization and Measurement of Fan Engagement: Empirical Evidence from a Professional Sport Context. Journal of Sport Management, 28(4): 399-417. DOI: 10.1123/jsm.2013-0199
  59. Zambom-Ferraresi F., Rios V., Lera-López F. (2018). Determinants of sport performance in European football: What can we learn from the data? Decision Support Systems, 114: 18-28. DOI: 10.1016/j.dss.2018.08.006

Claudio Nigro, Simona Curiello, Enrica Iannuzzi, Enrico Lubrano, Vincenzo Sanguigni, Raffaele Silvestri, Rosa Spinnato, How complexity affects and shapes the dynamics in the football industry in "CORPORATE GOVERNANCE AND RESEARCH & DEVELOPMENT STUDIES" 2/2024, pp 121-155, DOI: 10.3280/cgrds2-2024oa16966