Understanding Sports Business: Growth, Trends, and Stakeholders

This report provides insights into the growth and development trends of FC Barcelona, including the impact of PESTEL factors. It also discusses the sports business ecosystem, the role of internal and external stakeholders, and the 8Ps of sports ownership. Gain a comprehensive understanding of the sports business industry.

UNDERSTANDING SPORTS
BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Growth and Development Key Trends........................................................................................3
PESTEL Analysis of FC Barcelona.............................................................................................4
Sport Business Eco-Systems........................................................................................................6
Stakeholders (Internal & External)..............................................................................................6
8ps of Sport Ownership...............................................................................................................8
Organisational Culture.................................................................................................................9
Revenue Streams.......................................................................................................................10
Structures of organisations........................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Understanding sports business is very important topic to be understood in this dynamic
world. Currently many sports businesses exist in the across the world, in which the main
objective of a sports business is to gain huge worth by running different sports and games
practices. Currently many people like to watch different games and sports in stadiums, television,
online platforms etc. so the audience of all games and sports are main source of earning to
various sports businesses in market place. This report discusses various major aspects of a sports
business, named; FC Barcelona. Basically, FC Barcelona is known as a Spanish football club
which is based in Barcelona (Valle and et.al., 2018). This club of football was founded in year
1899 by a Spanish, Swiss and English footballers’ group. The report discusses growth and
development key trends of the club with impact of PESTEL factors. Sport business eco-systems
and internal & external factors also has been discussed in this report. Some other key aspects of
FC Barcelona, like; organisational culture, structure and revenue streams also has been discussed
in this report.
MAIN BODY
Growth and Development Key Trends
Barcelona FC, being the global academy of football has now 49 schools covered across the
world under the Barca Academy Project. Under this, more than 45,000 children who are between
the age group of six to nineteen are taught about various aspects of the style of Barcelona and are
provided with complete education. The main objective of the club is to take the experience of
Barcelona around the whole world with the same guidelines of sporting and respect for the
values but only within the capacity of the regional adaption.
The club has already done international collaboration as its continuing its expansion in the other
continents. The club realized that every country is different with varied traditions for football. It
is now expanding itself in 5 continents where the players are provided with training to follow the
methodology taught which can help them to compete in the professional leagues (Herrera-Diestra
and et.al., 2020). The people are showing interest towards sports and are in need of such clubs
with trainers who can train them to become the sports professionals.

For example, this academy was also opened in New York in 2017 in which its aim was to train
the players up to the age of 19 in the area where the rapid growth of soccer can be seen clearly.
The club has also established itself in USA in Arizona where the players focussed on various
aspects like academic studies, sports studies, trainings, accommodation etc. along with
competing in the US Soccer Development Academy’s top division. Therefore, the club can
continue its expansion in the various other countries and continents to facilitate the people who
shows interest in sports.
As the sporting outfits and franchises are becoming an indelible part of the global business as
well as the landscape of the culture. There are widespread opportunities for the Barcelona FC
club as the demand is growing for the sports professional’s roles who can combine their
knowledge and passion for specific sport along with the required toolkit which can help in
driving the club towards success on the field and also in the boardroom.
The competition is rife at the executive level so the Barcelona FC can expand its services by
targeting the more number of sports and also by involving maximum number of women who can
represent their countries by playing the sports with the great enthusiasm (Bondia and et.al.,
2017). It can also establish its academy with the qualified professional in particular sports who
can train the players in different countries effectively thereby leading to success of the club of
Barcelona FC.
PESTEL Analysis of FC Barcelona
Football Club Barcelona is the professional football club of Spain which is based in
Barcelona. Being the fourth most team of sports in the world richest football club in terms of
revenue has an annual turnover of €840,8 million. Therefore, various external and internal
factors impact the team greatly. So, it is must to do analysis of the exterior atmosphere of FC
Barcelona by using PESTEL framework. The impacts of all such factors covers political,
Economic, Social, Technological, Environmental and Legal on Barcelona FC are as described
below:
Political
FC Barcelona being the football team of the Asia’s least corrupt countries lacks some
political processes, human rights and civil liberties. In 2011 election, Workers party won the

election which refused the team to use some measures which caused a lot of damage to the team.
These factors also helped in the growth of the team in forming the growth of human source,
modern technology and also in the set-up of institutions which helps in bringing innovation.
Also, the federal government launched a 5-year strategic plan for submicron technology in 1990
which helped in the growth of various laboratories which can benefit the team (Lapresa and
et.al., 2018).
Economic
The most important concern in this sector can trigger the low manufacturing. The team is
facing an unbalanced need as compared to supply. The cost at which the team is supplying is
even lower than its total expenses which created many capital problems for the makers. The
performance of the team is improving rapidly resulting in boosted manufacturing but the need is
low which results in recession and about the closure of the company because of less income
generated. But, in this time of economic crisis, the tax system of the country proved beneficial.
Social
The rate of literacy in the country is very high and secured the fourth position regarding
the infant mortality rate. The population growth rate of the club is low. The government focussed
on the advancement of human capital in market with the improved trainings which can help in
improving the expertise. Social initiatives were taken for this and this sector is considered to be
the departments which are developed properly regarding the labour in the world.
Technological
The advanced technology is forcing the club to bring innovation but its manufacturers do
not have their own innovation and has to depend on the technological partners of foreign. But the
government is striving hard by focusing on the club so that it can reduce the reliance. There were
many restrictions technologically in the setup which forced to build stronger relationship with
foreign countries (Sarmento and et.al., 2016). Though the club has largest networks of
telecommunication in the world having smooth connection making it the busiest port in the
world and a logistic hub.
Environmental

The favourable region supports the FC Barcelona in growing its capacity in the sector.
The environment of the region also helps the club in supplying the abilities which enhances the
monitoring of its activities. The country Spain is also considered to be the sunniest countries in
Europe which provides optimal climate which is required to the club.
Legal factors
The legal factors support the lawful setting of FC Barcelona and also hinders it. The club
has various issues as well as possibilities due to the IP legal rights and lawful contracts. The club
also exercises a lawful defence which protects its copyright, technology and the handling which
forces other clubs to have reliance on it (Buldu, Busquets and Echegoyen, 2019). It also focuses
on all the lawful contracts because of the Micron’s rate of interest not being materialized.
Sport Business Eco-Systems
The sports business ecosystem has comprised of different types of stakeholders which
plays an excellent role for the business to highly grow in market place. In this dynamic and
modern world, there are many people like to watch sports and games by visiting in the stadiums,
on televisions, through internet etc. Currently sports are the great tool of entertainment to people
in market place, and this is the main reason that currently FC Barcelona has great fan following
in market place. There are many factors, aspects, individuals etc. comes together for making the
eco-system of a sports business. A person or business in market place has always great
expectations from a sports business. In this situation, upper management and administration of
FC Barcelona has always required to work in the welfare or well-being of stakeholders which
comes under its eco-system (Esposito and et.al., 2020). Currently FC Barcelona is a very popular
and famous football club in across the world, because it has players like; Lionel Messi. In this
situation, many international companies come to this club for promoting their brand. Players of
this club has sponsored many brands in international market place. Due to having a strong fan
following, recently this club has started its merchandise as well for selling FC Barcelona printed
T-shirts, shorts and other accessories. This is the main reason that eco-system of existing sports
business is very broad, and it is expanding day to day in market place.

Stakeholders (Internal & External)
Currently upper management of this football has required to deal its many internal and
external stakeholders. However, organisational structure of this club fully affected by its various
stakeholders, because these stakeholders always has great expectation from the FC Barcelona. In
this situation, club’s each change practice directly impacts to these all internal and external
stakeholders. Some key internal and external stakeholders of existing sports business have been
discussed below with their expectations on the commercial success of FC Barcelona.
Internal Stakeholders
Participants: Participants are major internal stakeholders of FC Barcelona who plays for this
club in different stadiums. Basically, the management or administration of club has hired
different sports or football personalities for building a string team of football. However, these
different players or participants has exception from the club for appropriate fund as well. This is
a common procedure that, the FC Barcelona’s club provides fund to all players, and then these
players participate in games which has organised with another team (Fernandez-Crehuet,
Rosales-Salas and Navarro, 2019). On the basis of these all-mentioned factors we can say that,
participants or players are major internal stakeholders of the existing sports business.
Management team: No sports club or business can gain huge success in the sports industry
without having an appropriate management, in which the management team is also a key internal
stakeholder of FC Barcelona. This management team manages different factors and aspects for
gaining better outcomes in the industry. Team maintains a great coordination between upper
management of club and rest stakeholders. However, this team also a stakeholder to the club, in
which it also properly coordinates with upper management and administration of the club for
achieving final objectives and targets on time. The management team has expectations that, the
upper management should value the team because it enables to club for running its different
operations in proper channel.
External Stakeholders
Spectators: These are key external stakeholder to the existing sports business, because spectators
are main people who promotes sports and games at any place. Basically, spectators term
indicates to audience who very much like to watch various football games. When FC

Barcelona’s team play in the stadium with another team, then spectators or people buys tickets to
get entertained by watching match of this football club in the stadium. Currently, this football
club has great fan following in across the world, because most players and participants club are
highly professionals in playing the football (Lladós-Masllorens, Meseguer-Artola and
Rodríguez-Ardura, 2020). In this situation, present stakeholder always expects that, FC
Barcelona team should always play perfectly, and that’s why has purchased tickets of stadium
seats for live watching the team while playing football with another team.
Financial institutions: Financial institutions are also can be considered as key external
stakeholder of present sports busines, because no business popular football club can run its
different managerial activities without taking support of various financial institutions. This
stakeholder helps to club for systematically managing different cash inflows and outflows.
Financial institutions manage fund related transitions of FC Barcelona as well. With the support
of financial institutions, existing football club can get funded in international sports industry.
These all are major internal and external stakeholders of FC Barcelona sports business, in
which upper management of this blub has always required to establish an effective
communication with them, because its most stakeholders have high expectations on the
commercial success of the club.
8ps of Sport Ownership
Consideration of 8Ps of ownership is very necessary to each owner of a business, in
which an owner of sports business also have to always consider these all Ps for gaining excellent
outcomes in market place (Machado and Lopes, 2017). These 8ps of sports ownership are as
follows; passion, perception, people, proactiveness, permanent change, persistent learning,
potential, perseverance, in which upper management or owner should always follow the concept
of these eight Ps. These all Ps has been discussed below for the owner of FC Barcelona.
Passion: Passion is the first P of sports ownership which informs different owner about the actual
impact of passion. Basically, high passion is very necessary in a person for systematically own
and handle a sports business, like; FC Barcelona. Passion attribute is one of major sources of
energy in owner of sports business.

Perception: According to this second P, the owner of sports business should always have positive
perception for putting very positive impression on the society (Garcia-del-Barrio, 2018). Many
times, many owners not gain better outcomes because of having negative perception, in which
owner at FC Barcelona need to adopt very positive perception.
People: A owner should always value people who has added value in its business. For example;
different participants or players, employees within management team, audience who buys tickets
etc. are major people to existing sports busines, in which owner of business need to always value
these all people.
Proactiveness: Proactiveness is another major source of energy to an owner of the sports
business, in which this P aware upper management of various businesses and ventures for
systematically gaining very positive outcomes in market place (Bank, 2017). This is the main
reason that owner of this sports business needs to be very proactive.
Permanent change: The owner and management of FC Barcelona should have proper knowledge
about permanent change, because many times it requires to implement the change in workplace.
It should be focused employing some changes in its workplace which will help football club to
achieve great success.
Persistent learning: Persistent learning is very necessary to every person in a business or in an
organisation, because persistent learning gives chance to a person for developing its skills and
competences of management. When FC Barcelona’s owner will focus on persistent learning,
then it will make its organisational structure very effective as well as very productive.
Potential: High potential is always required in an owner of a business, in which the owner of FC
Barcelona have to improve its existing potential of managing football club, because this is very
necessary to develop present productivity in international sports industry.
Perseverance: Perseverance is also very important way to an owner of business for gaining huge
and effective results in market place, in which owner of existing sports business needs to be
highly confident and persevere to achieve its final target and objectives in decided time period.

Organisational Culture
Existing organisational culture of the FC Barcelona is very effective, because upper
management and administration of this sports business is very active in order to maintain an
effectiveness in own workplace (Rius-Ulldemolins and Klein, 2020). Football club’s
management completely knows that, no business or venture can achieve excellent outcomes in
market place. This is the main reason that, it uses various techniques and strategies for day to day
improving culture of its organisation. For example; management of FC Barcelona considers all
legal and ethical considerations in its workplace for maintaining an ethical work culture inside
the club. It has competence to resolve various conflicts also in workplace, and by using this
competence, it resolves various conflicts between players and participants etc. On the basis of
these all factors, existing organisational culture of the FC Barcelona is very effective and ethical.
Revenue Streams
Currently FC Barcelona sports business has lots of productive ways or methods to
generate excellent revenue in each financial year. Due to having many sources and streams of
revenue, this football club’s cash inflow transitions are higher than cash outflow, and this is the
main reason that, it is gaining huge profit margins in market place (Martí Devesa, 2016).
However, currently sponsorships, stadium tours, merchandise etc. are some major revenue
streams for the FC Barcelona. In this dynamic and modern world, these are very innovative as
well as productive streams of revenue to a sports business. With the support of mentioned
stream, this football club generates excellent revenue in market place.
Structures of organisations
Organisational structures of FC Barcelona are mainly divided into three parts, financial
program, Football/Player’s program and marketing & communication program. These all three
programmes are main pillars of this sports business. The first financial program helps to football
club easily get funded in market place. The Second football/ player’s program helps to
management of FC Barcelona for managing excellent performance of all players in the game.
This same program contributes in maintaining effective relationship between upper management
and all players as well (Machado and Lopes, 2017). Marketing and communication program help
to business for retaining all audience, fans and spectators. This is the basic structure of FC
Barcelona.

CONCLUSION
On the basis of above findings, it can be concluded that managing a sports business
effectively is not an easy task to a person. There are high intelligence and competence required
to enable a sports business for gaining better outcomes in market place. In this dynamic and
modern world. FC Barcelona is a very popular football club as well as sports business. The upper
management and owner of this business has putted its huge efforts for improving efficiency and
productivity of its football club. It can be also concluded that, after lots of achievement and
winnings, this club has succeeded in gaining huge fan following globally.

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