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Oceania Highlights
Issue 9 2016
Sponsorship, Finance & Human Resources

Oceania Highlights: Sponsorship, Finance & Human Resources


 

15 September 2016

Hello Oceania Sports Community,

Welcome to the ninth issue of Oceania Highlights with selected articles Sponsorship, Finance & Human Resources.

I chose sponsorship because this is a major component in allowing an athlete to compete internationally at tournaments. The finance part was inspire by OSEP's MISO Finance classes. Human resources consist of topics of management, boards and how to operate a sports organization after a devastation such as Winston. 

I hope you ask for some articles and improve your knowledge in the areas of Sponsorship Finance & Human Resources.

Please remember, if there is anything that you would like me to cover, please send an email to me.


Sincerely,
Martin V Burrows Jr.
Coordinator
Oceania Sport Information Centre (OSIC)
osic@onoc.org.fj/osic@usp.ac.fj
www.oceaniasportcentre.com
youtube


Sponsorship

Douvis, J., et al. (2015). "An Analysis of Sponsorship Deals in Sport." International Journal of Sport Management, Recreation & Tourism 17: 14-36.
    Due to the increasing financial value of sport sponsorship, the selection of a sponsorship partner and the development of the sponsorship deal are crucial issues for sports businesses. This study examines the sponsorship selection and development process between football teams and their sponsors. This study is exploratory. Nine case studies were conducted involving three professional, premier league football clubs and six sponsoring organizations, two major sponsors of each club. Results were analysed with content analysis. Findings indicate that the most important selection criteria used from both sides are fit in corporate values of the two partners; revenue opportunities, and possible image enhancement from the deal. Also, results show that both sides use a structured process for developing the sponsorship deal that includes 3 major stages, information collection; preparation and presentation of proposal, and negotiations and contract sign. Also, we find that the sport property only sends proposals whereas the sponsor only receives; the actors in each stage of the process vary, and the extent of the process is affected by the duration and quality of the relationship between the two partners. The study involves nine cases and has limited generalizability. Future research should substantiate results in other settings and using quantitative methods. The findings of this study help sport managers to structure and formalize their sport sponsorship selection and development process. This way sport entities will be able to select the best possible partners for sponsorship and exploit to the fullest extent the money involved from both sides of the partnership (sponsors and sponsees). For the first time a structured process for development of new sponsorship deals is designed. This can help sport managers in managing sponsorships effectively and fast.

Dumitru, I. and F. Nichifor (2014). "Contemporary dimensions of sports sponsorship." Timisoara Physical Education & Rehabilitation Journal 7(13): 133-139.
    Marketing developed close relation with sponsorship since the beginnings of the industrial era of sports. The relation has transformed in a stable relation, the two forces - the sponsor and the sponsored - transforming into two companions of journey. The effort undertaken in this work was focused on analyzing the modern aspects of the partnership generated through sports sponsorship. The current issue and sport sponsorship has come a long way since the first action of its kind until now. Based on the presentation of new concepts on the development efforts in sport sponsorship, content provides a detailed analysis of the actual specifics of this type of activity. Analysis of influence vectors sponsorship process gives us a picture of the forces that can act on this. At the end of our research we focused attention on elements that empowers sports portfolio in terms of corporate interest, the potentiation commercial message and image association. This technique of promotional community for and through sports is maybe the one that manifests the most "laic" status among the promotional forms. This epithet implies a metaphorical approach given by the possibility of accomplishing some objectives that can have some more obvious "corporality" than in the case of the other forms of promotion used in the sports industry. Sports sponsorship has been an early ally of sports, and has remained a basic communicational technique. This fact is due to some determination in double sense: on the one hand, sport has adapted permanently to the dynamics of the range of sponsorship techniques and, on the other hand, the sponsorship tried to use the chameleon-like offer of the sports potential.

Reams, L., et al. (2015). "Points of Attachment and Sponsorship Outcomes in an Individual Sport." Sport Marketing Quarterly 24(3): 159-169.
    With respect to an individual sport that operates within a league structure, analyses accounting for both individual and league corporate sponsors have largely been overlooked. Guided by brand attachment theory, the purpose of the present study was to determine which Ultimate Fighting Championship (UFC) fan points of attachment are most effective at predicting sponsorship effectiveness. A review of the literature provided four salient points of attachment (i.e., attachment to the league, fighter, sport, and level of competition) and four measures of sponsorship effectiveness (i.e., attitudes toward UFC sponsors, attitudes toward individual fighter sponsors, UFC sponsor purchase intentions, and individual fighter sponsor purchase intentions). Results of the regression analyses displayed that attachment to the league is most effective at predicting sponsorship effectiveness, including sponsorship of individual fighters. Findings from this study contain both theoretical and pragmatic implications. In discussion, results are further analyzed along with recommendations for future research.

Sung, H., et al. (2016). "Spillover Effect of Sport Team Performance on the Value of Corporate Sponsors and Affiliated Firms." International Journal of Sport Finance 11(1): 79-96.
    This study examines the spillover effect of the performance of Korean baseball teams on the value of their sponsoring chaebols (large Korean family-owned conglomerates) and their affiliated firms using postseason data from the Korean Baseball Organization. We find that postseason success has a positive spillover effect on the firms affiliated with sponsoring chaebols and that the spillover effect is stronger for affiliated firms whose names incorporate the chaebol's name. Hence, this study contributes to the literature by showing the spillover effect of team performance on sponsoring chaebols from the perspective of international sports finance. We also provide managerial implications for firms that initiate new sports sponsorships as well as for firms trying to maximize media exposure by advancing to the postseason.


Trachsler, T., et al. (2015). "Sport commercialism and its impact on sponsorship strategy." Choregia 11(2): 77-92.
    Sport commercialism has increased tremendously over the past twenty years. Major sporting events and organizations are at the point where most cannot survive without outside sponsorship revenue. This study on American attitudes towards sport sponsorships analyzes the increased sport commercialism's impact on sport fans. Previous studies on sport sponsorship and commercialism showed that increased sport commercialism leads to a negative purchase intent although a younger fan may be resistant to the negative influence of over-commercialism. This study builds upon such research by comparing gender, age, type of sport (professional versus amateur) and fanavidity. Perhaps paradoxically, this research suggests there is no correlation between over-commercialism and sport interest across numerous demographic categories. This data of corporate influence on sport commercialism may provide insights for sport sponsors as they best position their brands to the sport avid consumer.

Walraven, M., et al. (2016). "Benchmarking Sports Sponsorship Performance: Efficiency Assessment With Data Envelopment Analysis." Journal of Sport Management 30(4): 411-426.
    Over the last decades, sports sponsorship has become a popular and expensive marketing instrument. However, in business practice, projects are often not evaluated properly and academic research considering both costs and benefits of sponsorship is limited. In response to the concern that investments in sports sponsorship should be made more accountable, we propose data envelopment analysis (DEA) as a method for benchmarking sponsorship efficiency, and illustrate its usefulness by applying it on a sample of 72 major Dutch sports sponsorship projects. We find an average efficiency level of almost 0.3, which implies that the average project would have attained the same results with 30% of its fee if it had been performing as well as its benchmark. The results reveal that 12.5% of the investigated sponsorships are fully efficient. Moreover, we find a high degree of variety in efficiency scores; 37.5% of the projects with an efficiency below 0.1. In addition, we show how DEA scores may be used by sponsor managers to identify peers, which are those projects that attain roughly the same sponsorship outcomes, but at lowest budgets. After estimating the efficiency scores, a second step in the analyses involves investigating which sponsorship characteristics affect sponsorship efficiency. For this purpose, we use the DEA scores as a dependent variable in a Tobit regression model. The findings suggest that sponsorship clutter negatively affects sponsorship efficiency, whereas sponsorship duration has a positive effect.


Finance

Časlavova, E. and P. Berka (2005). "THE FINANCIAL MANAGEMENT OF SPORTS CLUBS IN THE CZECH REPUBLIC." Kinesiology 37(2): 204-213.
    The results of research into the financial resources of sports clubs in the Czech Republic are presented in this article. Our investigation evaluates the structure of sports clubs incomes: the proportion gained from public sources and from the clubs' own resources. Gifts and sales of advertising facilities represent the largest part of their own private resources, and therefore we investigated this impact on the total income from all sources; furthermore, we investigated the consequential aspects of business relations concerning the sale of advertising facilities as they are fundamental to any sponsorship in the Czech Republic. The concept research corresponds to the practical needs of the top management of sports organizations in the Czech Republic as they are aware of the absence of global information concerning these needs. When preparing their budget these organisations have to plan their costs so that they can be paid from public resources and their own private ones, too. The greater the volume of income, the broader the spectrum of activities that can be offered by a sports club. It requires considerable experience to create one's own private financial resources, which come mainly from gifts, the sale of advertising media, rented premises, sports activities and enterprise revenues such as transfer of players, etc. The results of the first phase of our research (1996/97) were verified by statistical methods in combination with socio-psychological aspects (comparison of structures, the test of proper identity, the estimate of parameters of the basic complex, socio-professional aspects). This enabled us to generalise the results for all sports clubs.

Emery, R. and M. Weed (2006). "Fighting for survival? The financial management of football clubs outside the ‘top flight’ in England." Managing Leisure 11(1): 1-21.
    There has been an increasing interest in the ‘business’ of professional football in recent years, with a number of refereed journal articles and edited and single-authored texts addressing the subject. However, almost all of this activity, which is largely UK based, has focused on the ‘elite’ end of the business: namely, the FA Premier League. This paper addresses the very different business and financial management issues faced by those professional clubs outside of the ‘top flight’ in England. It does this by examining the range of potential and actual management responses of clubs to financial pressures, prior to an analysis of a lead case study of Lincoln City FC, which has emerged relatively successfully from a period in administration, supplemented by perspectives from other clubs that have entered administration in the last ten years. In conclusion, the paper discusses some of the barriers facing clubs in adopting sustainable financial management strategies, and discusses the potentially central role that the Supporters Trust movement can play in ensuring financial prudence.

Kalashnikova, T. V., et al. (2016). "PHYSICAL CULTURE AND SPORT INDUSTRY DEVELOPMENT MANAGEMENT: FINANCIAL PERSPECTIVE." Teoria i Praktika Fiziceskoj Kul'tury(2): 100-103.
    The development of infrastructure and technological advances require considerable investments in sport facilities renovation. However, the sufficient financing level is not the only key factor to successful development of sport and physical culture. The management of the entire system in general and every organization in particular has also a great impact. Analysis of the best international practices shows the importance of smart management and continuous innovations for successful industry development. The paper illustrates current challenges of the Russian sport industry development and its financing specific nature as well as potential growth area. Peculiarities of the federal target program Physical culture and Sport Development in the Russian Federation over the period of 2016-2020 are represented. The researches of financial schemes, scope and its influence on sport development are conducted and funding sources are classified. The examples of successful international practices of capital raising are illustrated. The effective management system at the governmental regional and municipal levels makes this program happen. On the basis of researches authors provide recommendations for further Russian physical culture and sport management system improvement. A new approach to sport industry management called idealized design is introduced. The approach allows to extend standard managerial skills, to unlock creative potential of managers and improve the quality of management decisions. The approach is proved to be efficient for the Russian system of sport industry governing and applicable for further system renovation.

Human Resources

Drakulevski, L., et al. (2014). "SPORTS MANAGEMENT AND OPPORTUNITIES FOR PROFESSIONAL DEVELOPMENt." Research in Physical Education, Sport & Health 3(1): 129-136.
    Considering contemporary conditions, the industry associated with sports and management has evidently noticed growth and became even more attractive as a segment where the use of the business based philosophy considering planning and implementation is enforced. Sports structurally analyzed, includes a wide range of activities, processes and human resources from the area of the sports industry, which more extremely is focused on the modernization of management methods and the techniques for attracting and retaining customers.Management procedures used in sports include an extremely wide range, starting from the focus on a specific, particular segment of business operations, such as marketing or financial management in the purpose of sports up to a so called basic usage, or holistic management model, where all aspects of sports management, should be applied.Sports management can theoretically be determined in many ways, but in essence it is a combination of skills related to planning, organizing, coordinating, motivating and controlling in the context of the organization or department whose primary product or service are associated with sports. At the same time, managing processes and relations in sports is a very extensive field of research, which offers plenty of modes of specialized training and education for individuals, groups and sports entities, especially those which consider the sports industry as a profession that has a necessity of managing.As an exceptionally growing business segment, sports management employs a serious number of human resources, generates a huge volume of economic activities and processes, and affects in a positive way the determination and accumulation of peoples'life quality. Initially considering the general interest and need of Sports management, through defining the most important aspects of its long- founded management, the research effort will focus on the opportunities for professional development in the field of sports management. The fundamental factors that determine the theoretical-empirical approach to sports management on one hand, as well as the opportunities available for professional development of educated individuals, groups and entities in this segment on the other hand, will be integrally treated in order to present future directions and recommendations for more extensive outreach and development. Therefore, the paper will pay particular attention to the most important aspects related professionals who are integrated in the sports world and that effectively and efficiently build careers using different aspects of management.

Fletcher, D. and R. Arnold (2011). "A Qualitative Study of Performance Leadership and Management in Elite Sport." Journal of Applied Sport Psychology 23(2): 223-242.
    This paper is an investigation of performance leadership and management in elite sport. Thirteen national performance directors of Olympic sports were interviewed with regard to best practice. Four main areas were identified: vision, operations, people, and culture. The main vision issues were vision development, influences on the vision, and sharing the vision. The main operations issues were financial management, strategic competition and training planning, athlete selection for competition, and upholding rules and regulations. The main people issues were staff management, lines of communication, and feedback mechanisms. The main culture issues were establishing role awareness, and organizational and team atmosphere.

Jovanović, J. (2011). "SPORT MANAGEMENT IN COUNTRIES IN TRANSITION: CURRENT STATE AND DEVELOPMENT PERSPECTIVES." Serbian Journal of Sports Sciences 5(3): 115-125.
    The efforts in the field of sport over the past hundred years have been attempting to harmonize both sport and business functions of sports organizations, and adjust to political, economic and sociological challenges. Particular problems have arisen in the concepts of transition reforms in sport in former communist regimes, including Serbia. These involve the specificities of the transition process and the incompleteness of an institutionalized framework in sport and of legislation in particular, which hinders the search for solutions to strategic development in sports and the establishment of organized sports-business relationships. The present research was conducted on a representative sample, with the following variables: the method of establishing the structure of the management system, the allocation of financial resources, ownership issues, employment levels in sports management and primary and complementary sports profession. The results have indicated certain parameters in determining the current state of sport organizations and providing further guidance to their business activities.

Krsmanović, S., et al. (2014). "HUMAN RESOURCES-MAIN FACTOR IN THE DEVELOPMENT OF SPORTS." Activities in Physical Education & Sport 4(1): 84-86.
    The concept of' 'sport" today can't be reduced to the process of training and competition, although they remain the core of the sport. Sport is an important social phenomenon and value, an activity that goes deep into the field of politics, economics, culture, education, ethics, science etc. The usual athlete-coach relationship has now been extended, and it is conditional connected with a series of social relationships in which we recognize politicians, managers, doctors, psychologists, sociologists, information technologists. By not underestimating the material and financial resources of community sports we believe that the role and importance of human resources which remains the basis for the survival and development of the sport. This fact implies that the human resources around the sport are rapidly evolving, much faster than the conventional education system does.

McDonald, H. and E. Sherry (2010). "Evaluating Sport Club Board Performance: A Customer Perspective." Journal of Sport Management 24(5): 524-543.
    When assessing board performance, customers are often overlooked as a stakeholder group. Yet, dissatisfied customers have successfully acted to have boards removed, and we have seen this scenario occur repeatedly among professional sport organizations governed by boards. The purpose of this research was to identify the factors affecting customer perceptions of sport club board performance, and guide organizations in the management of those perceptions. After extensive qualitative research, over 20,000 season ticket holders (STHs) from 14 different professional sport clubs were surveyed. The results suggest that a combination of overt performance measures (e.g., profits) and subjective, nonfinancial measures (e.g., feelings of inclusion) are used by customers to assess sport boards. Overall perceptions of the board directly influence customer satisfaction, and are strongly correlated with on-field performance and customer inclusion, suggesting boards are perceived to have a role to play in both areas. Perceptions of board performance are, therefore, worth managing in a holistic manner, balancing strong financial and club management with a particular emphasis on inclusive practices.

Mihaela, I. T., et al. (2014). "IMPORTANCE OF HUMAN RESOURCES IN SPORTS CLUBS AND IN SPORTS PERFORMANCE MANAGEMENT." Gymnasium: Scientific Journal of Education, Sports & Health 15(2): 269-278.
    Human resources are the most important asset in the structure of a sports club. A sports club could not exist without specialized human resources employed in various positions and without the necessary training required for its efficient management. Each sports club, regardless of its organizational form has a certain number of positions for different hierarchical levels. The higher the hierarchical level, the more demanding the tasks and to the same extent, the training requirements for human resources. Therefore human resources are very important both for the management of a sports club and for achieving performance in sports activity. The main human resources that have responsibilities in achieving performance management is team made up of the team's manager, coaches, assistant coaches, other coaching positions (depending on the type of sport), psychologist, physician, physical therapist, computer specialist. This team can run as presented above or the number of its team members may vary. We can conclude form those mentioned above that a sports club may neither achieve performance nor make a profit without human resources.

ÖCal, K. (2015). "EVALUATING ORGANIZATIONAL PERFORMANCE IN PUBLIC SPORT ORGANIZATIONS." SSTB International Refereed Academic Journal of Sports, Health & Medical Sciences 16(5): 55-71.
    This paper describes the process of developing and validating four different scales to assess organizational performance in public sports organizations. The scales are Human Resources Management Performance Scale, Administrative Performance Scale, Financial Performance Scale and Employee Performance Scale. Human Resources Performance refers to the effective use of human capitals and Administrative Performance includes the capacity to improve positive climate and cultural aspects in an organization. Financial Performance on the other hand involves the amount of budget, autonomy in use of this budget and various attempts to increase this budget. Finally, Employee Performance refers to activities performed in job scope (task performance) and activities which contribute to social and psychological context of the organization (contextual performance) by all members.

Surujlal, J. (2013). "Appraising coach performance: A qualitative analysis of coaches' perceptions." African Journal for Physical, Health Education, Recreation & Dance 19(1): 30-43.
    As a result of the proliferation of international competition, increased participation in sport, increased sponsorship, increased visibility of sport and greater levels spectatorship, the management of human resources in sport organisations has become an increasingly important factor in organisational success. Among the important human resources practices is performance appraisal. The current study examines the perceptions of sport coaches regarding their performance appraisal. A qualitative approach using in depth interviews was adopted for the study. The sample comprised eleven sport coaches who were selected through a purposive sampling technique. Five themes, namely criteria, feedback, purpose, appraiser and expectations emerged through the analysis of the data. Evident from the findings are concerns regarding the appraisal of sport coaches. Sport organisations need to take into account these concerns when implementing performance appraisal at their organisations. The performance of sport coaches should be appraised by a knowledgeable appraiser using sound appraisal techniques which considers all factors contributing to the overall performance of a coach. Furthermore clear guidelines regarding the criteria and purpose of the appraisal should be made available to both coaches and appraisers.

Taylor, T. and P. McGraw (2006). "Exploring Human Resource Management Practices in Nonprofit Sport Organisations." Sport Management Review (Sport Management Association of Australia & New Zealand) 9(3): 229-251.
    Contemporary business challenges and globalisation pressures have had a significant impact on the human resource management (HRM) practices of many organisations. Whilst the adoption of more sophisticated, complex and strategic management systems is well documented in the general HR literature, organisations that operate with both paid and volunteer human resources have been virtually ignored by scholars. In this paper we report on a study on the adoption of HRM practices by state sport organisations in New South Wales, Australia. Our results indicate that despite pressures to become more strategic in their people management, only a minority of these sport organisations have formal HRM systems. We also found differences between the HRM practices used with paid employees and volunteers particularly in organisations with formal HR policies. Research and practical implications for HRM in sport organisations are discussed as well as future challenges.


Weerakoon, R. K. (2016). "Human Resource Management in Sports: A Critical Review of its Importance and Pertaining Issues." Physical Culture & Sport. Studies & Research 69(1): 15-21.
    This paper will illustrate the meaning and importance of human resource management (HRM), human resource planning, and strategic human resource management, which are critically important for an organization's effectiveness and must be effectively managed (Doherty, 1998). This study used the literature review method to acquire its final results. The relevant HRM literature review was done according to the purpose of the study. It used the purposive random sample method for selecting relevant literature. This study shows the current economic environment in the sports industry; the second part of the study critically analyzes the value of the strategic management of employees for the effective and efficient operation of sports organizations. It also critically evaluates human resource planning and other pertinent issues in terms of legislation, recruitment, selection, training, induction, and reward management from different international examples in sports management. Over the past few decades, increasing competition, globalization, and continuous changes in the market and in technology have emphasized the need to rethink the management of the organization and of human resources for the sake of overcoming significant challenges (Taylor et al., 2006). Therefore, managers should use strategic human resource management to overcome significant issues and to form well-planned strategies so that the organization may succeed.

Wicker, P., et al. (2013). "Organizational Resilience of Community Sport Clubs Impacted by Natural Disasters." Journal of Sport Management 27(6): 510-525.
    When community sport clubs are impacted by natural disasters, organizational resilience is critical to recovery. Within this study, organizational resilience is conceptualized as a function of robustness, redundancy, resourcefulness, and rapidity, and applied to community sport clubs. Using data from a survey of sport clubs (n = 200) in Queensland, Australia, the organizational resilience of affected clubs and their recovery from natural disasters (flooding, cyclone) was investigated. The findings show that clubs used human and financial resources predominantly in their recovery efforts. Organizational resilience, number of members, and the use of government grants had a significant positive effect on the extent of the club's perceived overall recovery. Clubs providing equestrian, golf, and motor sports recovered to a significantly lower extent. Proactively pursuing government grants, suitable insurance coverage, and interorganizational relationships were identified as factors that assisted clubs in becoming more resilient. The measurement of resilience should be refined and expanded in future research.
 
 
Have a Good Weekend!!
 
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Issue 9 2016
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