The Globalisation of Juventus Brand: Financial Analysis vs. Fan Engagement

Running head: THE GLOBASITAION OF JUVENTUS BRAND: FINANCIAL ANALYSIS vs.
FAN ENGAGEMENT
THE GLOBALISATION OF JUVENTUS BRAND: FINANCIAL ANALYSIS vs. FAN
ENGAGEMENT
Name of Student
Name of University
Author’s Note

THE GLOBALISATION OF JUVENTUS BRAND: FINANCIAL ANALYSIS vs. FAN
ENGAGEMENT
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ABSTRACT
This research paper deals with problems related to the globalisation in the football world, the
importance of a fan base and impact of globalisation and alteration in the fan base in the
financial position of the club. Juventus football club has been chosen for the analysis. In search
of the answer to the research questions, many articles and journals are reviewed. The lack which
the explained articles and journals have also been discussed in the literature review chapter. The
next section states the reason behind the adoption of the research approach, which in turn
provides a base to the research paper. The primary research approach has been adopted for the
development of this research paper. The data analysis is conducted after reviewing and analysing
the primary research data. The last part of the research paper shows answers to the research
questions based on the analysis made on the research data collected.

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TABLE OF CONTENTS
1.INTRODUCTION........................................................................................................................5
1.1 Background of the study............................................................................................................5
1.2 Impact of Globalization on Juventus.......................................................................................10
1.3 Research Objectives:...............................................................................................................11
1.4 Research Aim......................................................................................................................11
1.5 Research Questions.............................................................................................................12
2.LITERATURE REVIEW...........................................................................................................13
2.1 Introduction..............................................................................................................................13
2.2 Perception of supporters..........................................................................................................13
2.3 Effect of globalisation on Football club..................................................................................15
2.4 Utilization of impact of globalization......................................................................................15
2.5 Relation of globalisation with trade circuits............................................................................18
2.6 Local tradition versus globalisation.........................................................................................19
2.7 Effects of globalisation on financial performance of football club.........................................20
2.8 Effects on performances of football team on fan base............................................................24
2.9 Effect of globalisation on brand extension..............................................................................28
2.9 Effect of supporters on commercialisation of football............................................................30
2.10 Gap in Literature....................................................................................................................30
2.11 Research Hypotheses.............................................................................................................32

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3.RESRACH METHODOLOGY..................................................................................................33
3.1 Introduction..............................................................................................................................33
3.2 Research Methodology Outline..........................................................................................34
3.3 Research Onion...................................................................................................................34
3.4 Research Philosophy...........................................................................................................35
3.5 Justification for the Chosen Research Philosophy..............................................................36
3.6 Research Approach.............................................................................................................36
3.7 Justification for Chosen Research......................................................................................36
3.8 Research Design......................................................................................................................37
3.9 Justification of the Chosen Research Design...........................................................................37
3.10 Selection of Sample Size and Sampling Models...................................................................37
3.11 Data Collection Method.........................................................................................................38
3.11.1 Primary Research................................................................................................................38
3.12 Data Analysis.........................................................................................................................39
3.12 Research ethical consideration...........................................................................................39
3.13 Research Limitation...............................................................................................................39
3.14 Time horizon..........................................................................................................................40
4.RESULTS AND DISCUSSION.................................................................................................41
4.1 Introduction..............................................................................................................................41
4.2. Summary of the variables.......................................................................................................41

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4.3 Descriptive statistics................................................................................................................41
2.3 Correlation analysis.................................................................................................................52
2.4 Regression analysis..................................................................................................................53
5.CONCLUSION AND RECOMENMDATION.........................................................................56
5.1 Conclusion...............................................................................................................................56
5.2 Linking with the objective.......................................................................................................57
5.3 Recommendation.....................................................................................................................58
5.4 Limitation and future work.................................................................................................59
6.REFERENCES...........................................................................................................................60

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1.INTRODUCTION
1.1 Background of the study
The term ‘globalisation’ refers to the connection among different parts of the world,
which results in expansion of the international cultural, political and economic activities. The
process of globalisation mainly involves motivation and integration of various goods and even
among different people who are residing in different countries. There are many advantages and
disadvantages of globalisation (Block 2016). The state of globalization depends on economic,
political, social and cultural environment. These attributes of globalization determine success of
widely spread process of globalization. In addition to economic sphere, the on-going process of
globalization holds an important position in sports world. Football is one of the most globalised
games as stated by many famous magazines, sports channels and different economic and
financial magazines. In the football world, it is observed that the sporting teams hailing all over
the globe have demand for the players from foreign countries especially from Europe and Latin
American countries (Yang et al. 2014). The clubs spend a significantly high amount of money to
pay for such talent irrespective of the country from which the player belongs to. Before the year
of 1995, it can be seen that Football associations used to have a rule of restricting the number of
players to some specific club around the world. During that period a Belgian player revolted
against the rule which inflicted on player transfers and absorptions by the Federation. The
transfer rule was mainly applicable to foreign player transfer. The player protested on the ground
of violation of the regulations in regards to the laws on labour mobility and on the discriminating
practices. After that, there was relaxation of the restrictive practice limiting number if foreign
players (Connell 2018). Since then players can freely move from one place to another or from

THE GLOBALISATION OF JUVENTUS BRAND: FINANCIAL ANALYSIS vs. FAN
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one club to another club. Elimination of such restrictions opened a new door where new skilled
players could be recognised in the whole world.
The talents are mainly clustered in the international clubs who hold a considerable
amount of budget which provides the power to purchase the potential for the new abilities. Many
clubs also start nurturing the players at a very young age so that they can build the talent and
enhance the expertise to the fullest. There are other professionals as well required for the
development of the team and nurturing the talent. The supporting team includes the doctors,
economist, banker, engineers and other staffs providing immense help from the back (Pfister,
Klein and Tiesler 2014). Among these factors, fan base is one important one. In case of the
clubs, the fan base is an essential aspect as they are ones who form the plinth to the club and
provide the most support. Another element of the supporting team includes the financing part of
the company. For many of the billion spectators who watch the football tournament gap in
Rustenburg, Republic of South Africa, the word “globalisation” might have returned to mind.
From advertisers to spectators, football embodies globalisation like no alternative sport (Frawley
and Van den Hoven 2015). Moreover, for players, football represents globalisation like no
alternative profession.
The marketplace for skilled football players is, by far, the leading globalized
marketplace. The enormous push to the free movement of labour in football began in 1995 once
the questionable Bosman ruling came into effect. Belgian player Jean-Marc Bosman complained
to the EU Court of Justice against rules that then restricted the number of foreign players to 2 or
3 per club. The foundations were, Bosman argued and won, in crying violation of freedom of
movement and equity labour laws inside the EU Union (Vrontis et al. 2014). The upraised ruling
limits on EU players, and shortly alternative limits on African, East European or resident players

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were formally abandoned or created irrelevant. Thus, international quality in one little market,
for prime skilled football players, became nearly complete. Today, many of the most
straightforward clubs do not have any players in any respect from their “own” countries (Lee
2014). The lay to rest Milano squad had no Italian starters solely several weeks ago once
winning Europe’s most prestigious competition, the Champions League.
The first one cannot be quantified; however, most observers agree that the standard of the
sport has improved: players have more substantial physical stamina with higher ball management
skills and techniques (Connell 2018).
The international quality of labour combined with a capitalist system within which the
wealthiest clubs can purchase the most straightforward players while not earnings caps or
alternative limits concentrating on quality. Some of the most affluent football groups obtain the
most straightforward players and collect the first trophies. This encourages the clubs to boost
their quality, develop a global fan base, commercialise new jerseys and advertisements, add to
their coffers and ultimately shop most talented players (Trequattrini et al 2016).
The gap between the wealthiest clubs and the rest has widened in key Europeans leagues.
Throughout the last fifteen years, all English football championships were won by the
questionable "Big Four": Manchester United, Chelsea, Arsenal and port (Trequattrini et al 2016).
The concentration is more significant in Italy: just the once throughout the last twenty years
encompasses a non-top-four club won the Italian Serie A. It is no surprise that the highest four
Italian clubs just like the prime four English clubs are counted on the list of the twenty wealthiest
clubs within the world. In Spain, Real national capital and Barcelona shared seventeen out of the