Risk in the activities of football companies on the example of Olympique Lyonnais and GKS Katowice
DOI:
https://doi.org/10.12775/JEHS.2022.12.05.021Keywords
competition, financial situation, football companies, revenue, risksAbstract
Purpose: The aim of the paper is to present the economic situation of two publicly listed companies: GKS Katowice (Poland) and Olympique Lyonnais (France). Both enterprises have different ownership models: Olympique Lyonnnais is a privately owned club, and GKS Katowice belongs to a municipal government. However, both clubs operate in the realities of different market economic system (Poland and France) and also at a different level of economic development. It is common that football companies function under uncertainty and risk. This is heightened by additional characteristic factors for this type of activity such as uncertainty of outcome in sports competition. The adoption of professional sport activities also automatically runs to the risk, but this is not the only problem that the company has to face. In addition, both clubs had to deal with new challenges: COVID-19 pandemic and lockdowns. The paper presented the functioning of both football companies during the COVID-19 pandemic and lockdowns.
Methodology: The first part of this research study discusses some particular points of the business strategy and risk management in the context of football companies’ management. The economic and financial situation of two football companies is presented, namely: Olympique Lyonnais and GKS Katowice. The focus is on sports, economic and financial criteria to assess the standing of football companies. This paper combines the conclusions from secondary data analysis, content analysis of websites as well as qualitative and quantitative analysis. The study also employs a comparative analysis.
Research and practical limitations: Football companies are in the need to take several actions: a) continuously search for new sources of financing and diversification of activities, b) conclude long sponsorship agreements. Building a solid financial foundation and looking into the future can help football companies get through times of various crises and the COVID-19 pandemic.
References
Akrelof G.A.,Shiller R.J. (2009),Animal spirits. Wie Wirtschaft wirklich funktioniert, Campus Verlag, Frankfurt/New York.
Beiderbeck, D., Fravel N., von der Gracht, H.A., Schmidt, S.L., Schweitzer V.M. (2021), The impact of COVID-19 on the European football ecosystem – A Delphi-based scenario analysis. Technological Forecasting & Social Change, No.165.
Borkowski P. (2008), Ryzyko w działalności przedsiębiorstw, Wydawnictwo Uniwersytetu Gdańskiego, Gdańsk.
Borland J., Macdonald R., Demand of sport, Oxford Review of Economic Policy2003, vol. 19, no. 4.
Fühner, J., Schmidt, S.L., Schreyer, D., (2020), Are diversified football clubs better prepared for a crisis? First empirical evidence from the stock market,European SportManagement Quartly, vol. 21, Issue 3.
GKS GieKSa Katowice, Jednostkowy raport okresowy. IV kwartał 2021 roku.
GKS GieKSa Katowice, Raport roczny za 2021 rok.
GKS GieKSa Katowice, Raport roczny za 2020 rok.
GKS GieKSA Katowice, Raport roczny za 2019 rok.
Grabowski A., (2014), Przedsiębiorstwa sportowe w gospodarce rynkowej. Na przykładzie FC Bayern Monachium S.A., Wydawnictwo WNT, Warszawa.
Grabowski A., (2019), Ekonomia sportu. Zagadnienia metodologiczne i wybrane doświadczenia. Wydawnictwo Naukowe PWN. Warszawa.
Grabowski A., (2021), Impact of COVID-19 Pandemic and Lockdown on the Activities of European Football Companies, European Research Studies Journal, vol. XXIV, Special Issue 3.
Groot L. (2008), Economics, Uncertainty and European Football. Trends in Competitive Balance, Edward Elgar, Cheltenham, Northampton.
Hammerschmidt, J., Durst, S., Kraus, S., Puumalainen, K. (2021), Professional football clubs and empirical evidence from the COVID-19 crisis: Time for Sport entrepreneurship? TechnologicalForecasting & Social Change, No. 165,
Késenne S. (2007), The Economic Theory of Profes¬sional Team Sports. An Analytical Treatment, Edward Elgar, Cheltenham, Northampton.
Moore, K. (2021), Football is not a matter of life and death. It is far less important than that. Football and the COVID-19 pandemic in England. Soccer & Society, 22(1-2).
Olympique Lyonnais Group, Financial Year 2018/2019.
Olympique Lyonnais Group, Financial Year 2019/2020.
Olympique Lyonnais Group, Financial Year 2020/2021.
Olympique Lyonnais Group, Press Release, October 6, 2020.
Olympique Lyonnais Group, Press Release, April 1, 2021.
Olympique Lyonnais Group, Press Release, May 12, 2021.
Parnell D., Bond A.J., Widdop P., Cockayne D. (2021), Football Worlds: business and networks during COVID-19, Soccer & Society, vol. 22.
Reade J.J., Singleton C. 2020. Demand for public events in the COVID-19 pandemic: a case study of European football, European Sport Management Quarterly, vol. 21, Issue 3.
Sprawozdanie Zarządu GKS GieKSa Katowice S.A. za rok 2020.
Wydział Edukacji i Sportu, Urząd Miasta Katowice, informacja publiczna z dnia 8 marca 2022r.
UEFA, 2021. The European Club Footballing Landscape. Club Licensing Benchmarking Report Football during the pandemic.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Artur Grabowski
![Creative Commons License](http://i.creativecommons.org/l/by-nc-sa/4.0/88x31.png)
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
The periodical offers access to content in the Open Access system under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0
Stats
Number of views and downloads: 416
Number of citations: 0