Financial vulnerability in football clubs: Learning from resource dependency and club theories

Carolyn J. Cordery, Dalice Sim, Rachel Baskerville

Research output: Contribution to journalArticle

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: facilities availability (club theory) and an open board (resource dependency theory), which, along with supporting factors, suggest how financially vulnerable clubs can survive and thrive.
Original languageEnglish
Pages (from-to)49-70
JournalThird Sector Review
Volume24
Issue number1
Publication statusPublished - 1 Jan 2018

Keywords

  • Financial vulnerability
  • amateur sports finance
  • resource dependence theory
  • club theory
  • financial viability

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    Cordery, C. J., Sim, D., & Baskerville, R. (2018). Financial vulnerability in football clubs: Learning from resource dependency and club theories. Third Sector Review, 24(1), 49-70.