The Financial Performance of Middle-Ranking Football Clubs in Spain in the Context of Relegation
The Financial Performance of Middle-Ranking Football Clubs in Spain in the Context of Relegation
Wednesday 27th February 2008 at 6pm
Room G01 – Clore Management Centre,
Birkbeck College,
Torrington Square,
London WC1 7HX
Given by:
Dr Angel Barajas, University of Vigo, Spain
Synopsis
In football, when sporting performance is positive, satisfaction and a euphoric climate reign, the stadiums are full and clubs have an easier way to assure profits. However, in professional football, a bad season, which implies relegation, brings with it the need for profound reform of the management model. Regrettably, the number of relegated clubs who genuinely do take the opportunity to reform are few, with disastrous financial consequences. For this reason, and in order to secure the business viability of such clubs in the long term, it is worthwhile to study the relegation and promotion problem and try to look for measures that offer management solutions to the clubs affected that, in addition, satisfy supporters’ over-riding desire for success on the field of play.
This presentation will examine how to design a strategic change mechanism in management which can react effectively when serious alterations, as in the case of relegation, appear in the working environment of the core business. In particular, a case-study will be presented which analyses the effect on, and strategies adopted by, leading Spanish club Celta de Vigo as a consequence of the team’s relegation from La Liga in season 03/04. The case-study approach is useful as a means of analysing the peculiar characteristics of relegation and promotion in football as it affects negotiations with players, finance institutions and key sponsors designed to tailor requirements to the new lower-league environment.
Reading:
- Barajas, A & Urrutia, I (2007): Real Club Celta de Vigo (DG-1516). Case study IESE Business School. IESE Publishing.
- Barajas, A. (2006): “Celta de Vigo: The financial effects and strategies of relegation”, Sport Marketing Europe, Issue 3, winter 2006/07.
- Barajas, A (2005): El valor económico del fútbol. Radiografía financiera del fútbol español, EUNSA.
- Barajas, A. & Crolley, L. (2005):”A model to explain support in Spanish football,” MPRA Paper 3235, University Library of Munich, Germany.
- Barajas, A. & Fernández-Jardón, C. & Crolley, L. (2005):”Does sports performance influence revenues and economic results in Spanish football?,” MPRA Paper 3234, University Library of Munich, Germany.
Video
- Watch Angel in an interview to Birkbeck’s Sport Business Centre
Biography
Angel Barajas is a lecturer of Finance at the Faculty of Business Administration and Tourism (University of Vigo). His research relates to the finances of football clubs and sports economics. He has been advisor to the General Manager of Celta de Vigo during season 2006/2007.
Contact Details
Sean Hamil
Department of Management
Birkbeck College
Malet Street
London WC1E 7HX
Email: s.hamil@bbk.ac.uk
Tel: 020-7631 6763
