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A Much Feasible Option for Cash-Starved Smaller Clubs in Present Economic Scenario - Essay Example

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This essay will critically examine the arguments raised for and against the viability of mutual ownership model in England. The paper will then throw light over the impact of mutual ownership upon the management and governance of a football club…
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A Much Feasible Option for Cash-Starved Smaller Clubs in Present Economic Scenario
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Download file to see previous pages Evaluating the first argument, it must be highlighted that privately owned football clubs such as Manchester United, Chelsea, Manchester City and others have a large number of fans or supporters who show up at football grounds or stadiums to endorse their team against opponents (Brown, 2008). Nevertheless, these fans pay for tickets and food to watch their teams in action that provides them with an internal satisfaction but don’t receive any monetary benefits from the club owners who reap financial profits actually generated from customers’ money. Indeed, this loyalty continues due to geographic constrictions or personal feelings (socio-emotional factor). Hence, it is justified to say that offering club ownership to loyal supporters will further intensify their loyalty and strengthen the existing “We-feeling” between the club and its endorsers. Mutual ownership will thus be a lucrative option because it may result in an increase in the club’s revenue from ticket sales and other products offered at home grounds. Analysing the second argument raised by advocates, it must be recalled that private club owners have transformed themselves as real business entities that produce want-satisfying products. These clubs manipulate their supporters or fans by increasing the prices of tickets during busy seasons or important tournament matches. They actually use the economic principle of inelasticity, which says that consumers are ready to purchase and pay higher for products with high price inelasticity but tend to purchase fewer products with high price elasticity. ...Download file to see next pagesRead More
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