Financial Vulnerability in Football Clubs: Learning From Resource Dependency and Club Theories

Third Sector Review, Vol. 24, No. 1: 49-70, 2018

22 Pages Posted: 26 Mar 2018

See all articles by Carolyn J. Cordery

Carolyn J. Cordery

Aston University; Victoria University of Wellington - School of Accounting and Commercial Law

Dalice Sim

University of Otago

Rachel F. Baskerville

Victoria University of Wellington - School of Accounting and Commercial Law

Date Written: January 1, 2018

Abstract

Many amateur (third sector) sports clubs face financial vulnerability, threatening their ongoing operations. Resource dependency theory argues that clubs should eschew financial vulnerability through diversifying their revenue, increasing funder legitimacy, and having a proactive and open board. Alternatively, club theory highlights members who cooperatively own and enjoy the benefits of club goods; arguing that to eschew financial vulnerability, clubs should work to attract members, and make club facilities available which are of high quality. We compare and contrast these two theories, analysing factors differentiating financially vulnerable football (soccer) clubs from those that are not. Key factors are: facility availability (club theory) and an open board (resource dependency theory), which, along with supporting factors, suggest how financially vulnerable clubs can survive and thrive.

Keywords: Financial Vulnerability; Financial Viability; Amateur Sports Finance; Club Theory; Resource Dependence Theory

JEL Classification: M40; H40

Suggested Citation

Cordery, Carolyn J. and Sim, Dalice and Baskerville, Rachel F., Financial Vulnerability in Football Clubs: Learning From Resource Dependency and Club Theories (January 1, 2018). Third Sector Review, Vol. 24, No. 1: 49-70, 2018, Available at SSRN: https://ssrn.com/abstract=3145323

Carolyn J. Cordery (Contact Author)

Aston University ( email )

Aston Business School
Aston Triangle
Birmingham, B4 7ET
United Kingdom

Victoria University of Wellington - School of Accounting and Commercial Law ( email )

Faculty of Commerce and Administration
PO Box 600
Wellington
New Zealand

Dalice Sim

University of Otago ( email )

P.O. Box 56
Dunedin, Otago 9010
New Zealand

Rachel F. Baskerville

Victoria University of Wellington - School of Accounting and Commercial Law ( email )

Faculty of Commerce and Administration
PO Box 600
Wellington
New Zealand
006444636951 (Phone)
006444635076 (Fax)

HOME PAGE: http://www.victoria.ac.nz/sacl/staff/rachel-baskerville.aspx

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