Examining the financial condition of sport governing bodies: the effects of revenue diversification and organizational success factors

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Bibliographic Details
Title translated into German:Untersuchung der finanziellen Situation von Sportverbänden : die Auswirkungen von Umsatzdiversifizierung und organisatorischen Erfolgsfaktoren
Author:Wicker, Pamela; Breuer, Christoph
Published in:Voluntas
Published:25 (2014), 4, S. 929-948, Lit.
Format: Publications (Database SPOLIT)
Publication Type: Journal article
Media type: Electronic resource (online) Print resource
Language:English
ISSN:0957-8765, 1573-7888
Keywords:
Online Access:
Identification number:PU201712010852
Source:BISp

Author's abstract

Sport governing bodies play a critical role in the sport system. The purpose of this study is to analyze their financial condition, a topic that has been largely neglected in previous research. Based on financial portfolio theory, it was suggested that the level of revenue diversification has a positive effect on their financial condition (measured through total revenues, break even, profit, and investments). Also, the influence of sport-related and financial success factors was examined using data from a nationwide online survey of sport governing bodies in Germany (n = 1,080). The results provided evidence of a relatively high level of revenue diversification compared with other industries. Revenue diversification, hosting major sporting events, and cost optimization had a positive effect on the financial condition, while increasing memberships in clubs and organizing competitions had a negative influence. The findings have implications for the management of sport governing bodies.