2013•KTH Publication Database DiVA (KTH Royal Institute of Technology)Open access
Strategic Management in Football : How the European top club could adjust to UEFA financial fair play and simultaneously create conditions for competitive advantage within the changing UEFA football industry
Hampus Rikardsson, Linus Rikardsson
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Abstract
Background The external requirements for the European top clubs within the UEFA football industry are changing. Due to mismanaged finances during a significant period of time derived from the clubs’ ruthless aim for short-term sporting success, UEFA (The Union of European Football Association) has decided to change the rules of the game. UEFA’s newly implemented financial fair play regulations, with the main requirement of breaking even, force clubs that aim to participate in future UEFA competitions to drastically improve their financial performance. Consequently, we are witnessing a fundamental shift in the European top club’s upcoming strategy. From now on, the club must go from pursuing a short-term strategy almost exclusively based on the quest for sporting success, to successfully implement a long-term strategy that besides being based on the main purpose of sporting success also is characterized by the quest for financial success. Purpose The purpose with this thesis is to provide guidance towards the European top club’s adjustment to UEFA financial fair play and its simultaneous achievement of competitive advantage within the changing UEFA football industry. Approach With the more decisive aim for profitability, the similarities between the European top club and a profit-seeking firm become evident. Consequently, the authors apply and adapt business strategic management theories to formulate a long-term strategy based on the simultaneous achievement of profitability and improved sporting performance. Results Formulating a long-term strategy based on the simultaneous quest for financial and sporting success, the authors finally come to an understanding of how the European top club possibly could comply with financial fair play and simultaneously create conditions for competitive advantage within the changing UEFA football industry.