IDEAS home Printed from https://ideas.repec.org/p/hal/journl/halshs-02111106.html
   My bibliography  Save this paper

The win/profit maximization debate: strategic adaptation as the answer?

Author

Listed:
  • Mickael Terrien

    (CesamS - Centre d'étude sport et actions motrices - UNICAEN - Université de Caen Normandie - NU - Normandie Université)

  • Nicolas Scelles

    (University of Stirling)

  • Stephen Morrow

    (University of Stirling)

  • Lionel Maltèse

    (AMU IAE - Institut d'Administration des Entreprises (IAE) - Aix-en-Provence - AMU - Aix Marseille Université)

  • Christophe Durand

    (CesamS - Centre d'étude sport et actions motrices - UNICAEN - Université de Caen Normandie - NU - Normandie Université)

Abstract

Purpose The purpose of this paper is twofold. First, to highlight the heterogeneity of the organizational aims within the professional football teams in Ligue 1. Second, to understand why some teams swing from a win orientation towards a soft budget constraint from year to year, and vice versa. Design/methodology/approach Financial data from annual reports for the period 2005/2015 was collected for the 35 Ligue 1 clubs. To define the degree of compliance with the intended strategy for those clubs, an efficiency analysis was conducted thanks to the data envelopment analysis method. This measure of performance was supplemented with the identification of productivity and demand shocks to identify whether clubs suffered from such shock or changed their strategy. It enables to precise the nature of the evolution in the utility function, with regards to the gap between expectation and actual performance. Findings The paper suggests that a team can switch from one orientation to another from year to year due to the uncertain nature of the sports industry. The club director's utility function could also be maximized under inter temporal budget function in order to adjust the weight between win and profit according to the opportunities in the environment. Originality/value The paper sheds new light on the win/profit maximization. The theoretical model provides an assessment of the weight between win and profit in Ligue 1 and then identifies a new explanation for persistent losses in the sports industry.

Suggested Citation

  • Mickael Terrien & Nicolas Scelles & Stephen Morrow & Lionel Maltèse & Christophe Durand, 2017. "The win/profit maximization debate: strategic adaptation as the answer?," Post-Print halshs-02111106, HAL.
  • Handle: RePEc:hal:journl:halshs-02111106
    DOI: 10.1108/SBM-10-2016-0064
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pierre-Yves Janssoone & Antoine Feuillet & Mathieu Jéöl & Mickael Terrien, 2022. "The Economic Models Of Sports Associations: The Case Of Handball Clubs In Northern France [Les modèles économiques des associations sportives : le cas des clubs de handball du nord de la France]," Working Papers hal-03418321, HAL.
    2. Dina A. M. Miragaia & João J. M. Ferreira & Cédric T. Vieira, 2024. "Efficiency of Non-profit Organisations: a DEA Analysis in Support of Strategic Decision-Making," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 3239-3265, March.
    3. N. A. Osokin, 2018. "Win vs. Profit maximization: optimal strategy for managing organizational performance of russian football clubs," Strategic decisions and risk management, Real Economy Publishing House, issue 2.
    4. Budzinski, Oliver & Feddersen, Arne, 2022. "Should organizing premier-level European football be a monopoly? And who should run it? - An economists' perspective," Ilmenau Economics Discussion Papers 166, Ilmenau University of Technology, Institute of Economics.
    5. Javier Cifuentes‐Faura, 2022. "Efficiency and transparency of Spanish football clubs: A non‐parametric approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1850-1860, September.
    6. Antoine Feuillet & Mickael Terrien & Nicolas Scelles & Christophe Durand, 2021. "Determinants of coopetition and contingency of strategic choices: the case of professional football clubs in France," Post-Print halshs-02974491, HAL.
    7. Richard Evans, 2024. "The S-Score of Financial Sustainability for Professional Football Clubs," Journal of Sports Economics, , vol. 25(3), pages 322-345, April.
    8. Nicolas Scelles & Qi Peng & Maurizio Valenti, 2021. "Do the Peculiar Economics of Professional Team Sports Apply to Esports? Sequential Snowballing Literature Reviews and Implications," Economies, MDPI, vol. 9(1), pages 1-18, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-02111106. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.