Football's Economic Rise in the UK

Chapter 1

1.1: Introduction

Business and the economy represent a significant aspect of humanity and their existence and survival within the globe. Kenton (2019) describe the economy as a large set or framework of interrelated production and consumption activities that aid in the determination of resource allocation. The economy, often measured on a national level significantly match up the standards of living within the nation and among other things impact status and position. Kenton confirms that the production and consumption of goods and services are used to fulfill the needs of those living and operating within the economy, which is also referared to as an economic system. While the economy encompass a wide number of elements, the most common elements include products and services which are exchanged among individuals using currency and in a framework defined by different policies, rules and parties. The economy is often mostly made up of exchange of products and services that are developed by humans through their various activities including manufacturing, processing, agriculture, business, creative indulgences as well as entertainments, sports and games. According to PWC (2019), while most economies across the world are quite dependent on the manufacturing and business industries for their economic development and performance, a number of countries also have other activities including entertainment in the US, mining in the Middle Eastern countries and sports in the UK which significantly contribute towards the country’s economy. While a majority of factors in the economic systems run by these different activities and industries are relatively the same and apply the same fiscal and monetary policies as well as rules, the results coming out of some of these systems are quite exponential and raises the question of what is done different in these various industries. Nixon (2019) for instance highlights that the football industry in the UK (Majorly the Premier league) has had an 800% increase in its contribution to the UK economy since the end of the last century. This is higher than any other industry has had to achieve, and as such highlights the major purpose of this study, to evaluate the business environment of the professional football industry in the UK and comparatively analyze it against the manufacturing and retailing business industry in the UK to highlight any significant differences, similarities and impact.

1.2: Background of the Study

Muller (2017) points out a quote by Franklin Foer a renowned footballer…“Soccer isn’t the same as Bach or Buddhism. But it is often more deeply felt than religion and just as much a part of the community fabric a repository of traditions.” in an attempt to illustrate the scope of the football industry. The quote highlights that football is not only a sport, it transcends the boundaries into a hobby, a source of entertainment and inspiration for people and has often been seen as a ‘universal language’ which has the ability to inspire, engage and unite communities despite various diversities . Its inherent entrenchment in the community inspiring followership and fans leads to the development of its economic factors, impacts and eventual benefits. According to Bummer (2015) footballs’ rise in popularity before and after the world war attracting more press coverage and support by fans who were also the consumers of the entertainment/service offered by football led to the development of the football economy with huge crowds increasingly buying into football fan ship and significantly attending football matches all around the UK impacting the development of an economy. Effectively the continued popularization and spread of the sport across the UK led to the development of the groundwork for the economy including establishment of football stadiums. These have not only grown to be the huge contributors to the economy in the current century but significantly impacted the design and development of infrastructure within the UK in the late 20th century inspiring the development of its economy (Nixon, 2019). According to Bummer (2015) by the break of the Second World War, UK had up to 80 football clubs engaging in the 1939 and 1940 football league and its popularity was increasingly growing not only to all corners of the country but also across its borders to other countries within Europe significantly increasing its economic status as well as social and cultural impact among the population in UK. As a result football is currently of considerable social, cultural and economic significance to the UK and football clubs are the units of measurement representing business organizations or companies. These clubs impact the economy through providing employment to the football players, their agents, managers and the staff surrounding their operations and management of the clubs facilities including the stadium, describing the companies expenditure and general cost of business. Their major sources of revenue on the other hand include ticket sales and broadcasting revenues across major press houses in the UK and globally.

While the economy of the football industry as well as its impact to the culture and society of UK continued growing with increased development of clubs, it wasn’t until the development of the Premier league in 1992/1993 that the industry significantly picked up and skyrocketed in its growth. According to the Premier League economic and social impact report (2019), since the inception of the Premier League the various football clubs intensely involved have achieved considerable success, establishing a strong global reputation for high quality and entertaining football. This is evidenced by the Premier League consistently achieving the highest stadium utilization figures of any major European League, along with substantial growth in broadcasting revenue. Further the industries economic, social and cultural impacts are consistently increasing not only within the UK but spreading all across the globe given the age of globalization. According to Nixon (2019) the top flight football in the UK contributes up to £8 billion to the UK economy annually. Premier League (2020) further highlights that the first division alone, consisting of 20 teams, supports up to 100,000 jobs, contributes £3.3 billion to the UK treasury in taxes annually and has up to 686,000 individuals traveling around UK to watch games within a single year. Further the league is an internationally acceptable brand built upon the production of high quality football thereby spreading its reputation globally to achieve global success. The global fan base translates to its global market impacting up to £1.1 billion in broadcast export revenues adding onto the economy. As a result of the premier league the country has also seen significant development of up to 747 artificial grass pitches for community football, 92 football academies for training and development of players, more than 150 football clubs supported to deliver community programs and up to £350 million in financial support provided. Other industries including the travel industries, mass media industry, construction industry, general businesses around stadiums and others have also been significantly impacted by the football industry in the UK.

1.3: Problem statement

While it hasn’t been until the development of the internet in the 21st century that football as an economy and independent industry hit its peak, football and everything that it represents including its social and cultural impacts to the UK and its population has resisted disasters spanning natural, environmental, economic and political setbacks and continued its growth throughout the years. Nixon (2019) highlights that the football industry in the UK has grown by more than 800% in the last two decades since the development of the internet and subsequent diverse broadcasting technologies which simultaneously increases its popularity and economic impact in the UK. Studies including Bummer (2015); Geog (2018) Gregory (2019); Nixon (2019) highlight that despite general economic slowdown factors like recessions and as a result of political, economic, and social occurrences (such as the most recent exit of the UK from the European Union branded as Brexit) which significantly impact most top industries, football industry has been on a consistent growth path since the development of the Premier league in the late 20th century. PWC (2019) points out that despite the UK being on a constant economic growth path after the world wars spanning up to the beginning of the 21st century, their exit from the European Union in 2016 significantly impacted their economy leading to the consistent drop of their GDP over the years. Focus Economy (2019) point out a consistent drop in the country’s GDP from US$ 3,039 billion in 2015, down to US$ 2,642 billion in 2018, club revenues however have shown a consistent increase from £ 3,639 million in the 2015/2016 season to £5,050 million in the 2018/2019 season. Lange (2019) further highlights a subsequent increase to £5,240 million in the 2019/2020 season of the premier league and forecasts a possible increase even in the subsequent 2020/2021 season. These numbers suggest a significant development and growth in the football industry regardless of the economic downturn which has taken down with it some major economic industries including the business, automotive and pharmaceutical industries the airline sectors as well as the financial service sectors (World Finance, 2017) thereby base lining the aim of this study. In an attempt to understand the setup of the professional football business sector and why it maintains its growth and increased performance despite multiple economic lags, this study aims to evaluate the professional football business sector in the UK using the Premier League as a case study and comparatively analyze it with reference to the general business environment in the UK with particular reference to the manufacture and retail business industry.

1.4: Research Aim and Objectives

This study aims to analyze and understand the differences between the professional football industry and the general UK business sector so as to establish differences and any potential advantages present in one that can be replicated for the other to impact economic growth. In the background of the declining UK economic growth since Brexit in 2016, an analysis of the differences in the various elements, factors and structure of the professional football industry from the general UK business sector should provide valuable insights that can be applied by business companies and organizations to re-ignite growth and take UK back to its economic growth path prior to the exit from the EU. To effectively achieve this aim, the study was broken down into specific research objectives which guided the study.

1.4.1: Research Objectives

Among the specific objectives essential in achieving the research aim, which is to comparatively analyze the business environment of the professional football industry in the UK against the general UK business sector include:

To identify the major differences between the professional football business environment and the general UK business environment

To identify the major similarities between the professional football business environment and the general UK business environment

To highlight the major impact that the professional football industry has had on the UK economy

1.4.2: Research Questions

What entails the business environment of the professional football industry in the UK?

What are the major differences between the professional football business environment and the general UK business environment?

What are the major similarities between the professional football business environment and the general UK business environment?

1.5: Rationale of the study

Despite the consistent fluctuation of the UK economy over the last half decade following their exit from the European Union, the football sector is not only one of the least affected industries but statistics in fact highlight a lack of impact at all given the consistent growth and development of the industry on account of the club revenues of the premier league in the same period. The business set up of the football industry has not only been able to resist economic recessions but consistently continued with growth through economic downturns and mishaps, highlighting a significant difference in its business set up and framework as compared to other sectors within the UK economy including the general business sector. This study sets out to evaluate the professional football business comparatively against the backdrop of the general business environment in the UK with the aim of highlighting any beneficial differences and advantages that can be applied in other industries to significantly impact uniform growth and development of the entire economy, thereby re-ignite and set the country back to its initial growth path.

Chapter 2

2.0: Literature Review

2.1: Introduction

This chapter presents a narrative review of the various theories, concepts and information provided by other peer reviewed scholars with regards to the topic of professional football industry business environment. A majority of the sources reviewed include business and economic review articles, press and media coverage articles as well as books and theories of the economy and business environment. The section critically evaluates available information on the business environment of the professional football industry in the UK, with particular bias to the premier league, highlighting any significant benefits and drawbacks which are relatable and applicable to the general UK economy.

2.2: Theoretical Framework

A business environment according to Gitman (2018) comprises a sum collection of factors for consideration by companies or organizations including: employees, customers’ needs and expectations, supply and demand, management, clients, suppliers, owners, activities by government, innovation in technology, social trends, market trends, economic changes and a wide range of many others, classified between external and internal business environment factors. The external business environment is often composed of outside rival and complimentary organizations as well as forces which are often grouped into seven sub environments including: economic, political and legal, demographic, social, competitive, global, and technological environments (Grimsley, 2017). Each of these sectors creates a unique set of challenges and opportunities for businesses and can perhaps be most effectively evaluated using the PESTEL business environment analysis model which can be traced back to Francis J. Aguilar in 1967 (Morrison, 2007). The internal business environment on the other hand, involves organizations resources, competencies and competitive advantages that an organization possesses and that impact its continued growth, development and success. Internal evaluation and analysis often highlights organization or industries strengths and weaknesses (Mirkovic, 2019). According to Kenton (2019) the McKinsey 7’s Model developed by business consultants Robert H. Waterman, Jr. and Tom Peters in the 1980’s identify 7 internal factors to look for in an organizations business environment including: Strategy, structure, style, staff, skills, systems and shared values all of which will be evaluated within the literature review to unveil the football industry club’s internal environment. The study also utilizes SWOT model for internal business environment analysis to highlight the strength and weaknesses of clubs and as such the football business internal environment, in comparison to manufacturing companies internal environments within UK (Parsons, 2018). The PESTEL and SWOT analysis models and frameworks highlight the theoretical perspective with which the professional football industry will be evaluated within this chapter.

2.3: Professional Football Business Environment

2.3.1: Business Unit

In being able to understand the football economic structure and how it differs from the general business environment, an evaluation of the business unit representing the organization within the football industry is necessary for laying down the context. The business unit within the football economic structure and essentially with consideration to the Premier League includes the various clubs making up different divisions of the league, from the premier league, the first division and other championships (Cortsen, 2014). The clubs just like organizations and companies are individually owned either directly through control of all shares or through corporate entities and companies as part of business financial assets (Robinson, 2018). Wilson (2012) points out that football clubs and with particular reference to the top 20 premier league clubs are governed via three major ownership models including: the stock market, domestic investors and foreign investors. While under the stock market ownership, football clubs and the football economy could be more effectively governed like any other businesses, Wilson (2012) highlights that the stock market model which was widely used earlier on by top clubs in the Premier league has seen problems with stock value and corporate goals resulting in a majority of the clubs delisting between 2001 and 2007, Leaving the ownership model to mostly domestic investors with a recent influx of foreign investors. Hamil and Chadwick (2010) point out that the increased foreign investment in football clubs within the football industry in the UK is as a result of the increased commercialization of the game which leads to increased costs and inability of the traditional owners to keep up with the levels of investment required to compete for league positions. Ownership of an EPL club also provided a 'trophy' asset, conferring global notoriety and fame on owners, and the subsequent high value of the broadcasting rights and opportunities for global expansion indicates that significant revenues and profits can be made from the industry (Wilson, 2012). While organizations in the general business environment including manufacturing industries are cooperate entities which are significantly separate from the owners especially when it comes to finances and as such treated as independent entities from the owners by business policies and laws, football clubs are organizations which are more of assets than companies and as such the owners are free to spend on the clubs from whichever source rather than the clubs revenue and investments alone (Football Stadiums, 2018).

2.3.2: Club structure and Activities

The clubs just like any organization consist of resources that include: physical, Human and financial resources all of which are managed by the club owner either directly or through a board for effective decision making. The club representing a single unit organization is involved in a wide range of activities and tasks that impact the facilitate its running, operations and ability to compete with others for top competition and prizes while at the same time contributing to the UK economy. According to Gregory (2019) while individual teams are differently set up and have different sources of investment and revenue depending on the owners, their collective investment and performance in the Premier league, facilitates a success for the premier league which implies a boost in the UK economy.

2.3.3: Activities and Revenue Streams

The main purpose of the football club as an organization includes assembling, nurturing and using football talent to compete in different tournaments and competitions with financial and ostentatious outcomes as well as associated glory and reputation (Butler, 2019). Eventually the games not only provide products and services which earn the clubs revenue directly in form of entertainment that fans pay for but they also lead to a ripple effect in the generation of other products like sports apparel and shoes, loyalty points, broadcast content for media houses, as well as subsequent business to the airline and transport industry all of which significantly contribute towards the development of the economy in UK (Coleman and Ramchandani, 2010). Clubs indulge in management and training of players constantly for the premier league and other tournaments. A wide range of resources are critical for this endeavor which highlights the clubs need for other employees and human resource for the management and maintenance of the clubs facilities including stadiums and training grounds, as well as contracts and agreements. Together with the players and the coaching staff, these forms the major personnel of a football club and the means by which the club (organization) earns revenue and contribute to the economy of UK. Conn (2019) points out among the revenue sources and activities of top clubs within the premier league to include: Ticket sales and match day income, TV and Broadcasting Revenue, retail revenue, commercial revenue, winnings as well as player trading revenue all of which have a tax cap that goes straight to the UK economy thereby informing a significant level of contribution for the economy.

2.3.4: Competitions and Regulations

The major indulgence in the football industry includes playing football tournaments and competitions. These competitions include majorly the Premier league as well as the League cap and the FA cup in England as well as the UEFA champion’s league and UEFA Europa league for the greater European Union (BBC, 2020). All these competitions and tournaments have different management and governance bodies which are responsible for their set up, funding and management, however the more popular league significantly contributes more to the economy given the large following it has which translates to the revenues. Soccer Guide (2019) points out that despite having only English team participants, the Premier League is the most-watched football tournament in the world, attracting an average of 4.7 billion people globally. The popularity of the premier league can be attributed to the oldest and most popular clubs within England which inspire spectatorship and fans from all across the country who are loyal to the club and therefore attract more revenue more consistently due to filled up stadiums (Soccer Guide, 2019). The popularity of these teams within England coupled with their professional and entertaining performance and high quality football provided consistently throughout the year, every year, has subsequently led to the buildup of a global reputation and market for the league and football industry in the UK (Premier League). As a result high broadcasting revenue to the rest of the world include among other sources of revenue for the football economy in the UK. Ubaydli (2018) highlights however that the football economy and business environment within the premier league and in the UK resembles a capitalistic paradigm.

2.4: The Premier League

A number of teams (Twenty professional clubs) are grouped in tires and compete, with the largest prize going to the winner, and secondary prices to the subsequent top five teams. Butler (2019) points out that in addition to the direct award of prize money, the winning clubs financials and eventual revenues are significantly impacted in other ways including; improved marketing and broadcasting revenues, increased future ticket sales and full stadium capacities as well as increased revenues in products and merchandise sales among others, all of which eventually impact club success as an organization in addition to success as a football team. The bottom three clubs are often relegated to the subsequent second tire English Football League (EFL), while the top three in that tire are promoted to the premier league. Cortsen (2014) confirms that while the financial rewards accruing to the EFL promoted clubs are likewise considerable, including; increased followership which means improved marketing revenues as well as increased future ticket sales, similarly, the financial penalty for the relegated teams is often huge, primarily due to the loss of TV income. Eventually the financial performance is significantly pegged to the football teams’ performance on the field which is highly reliant on how much the owners of the club are willing and able to spend and invest on the club. As such, unlike the general business environment where regulating bodies and the government employ certain rules of fair play to protect small and medium business enterprises (SMEs) and support their growth and development by subsidiaries and other incentives, clubs that are bad can expect zero assistance from the Premier League as they seek to improve their performance. For the most part however, Ubaydli (2018) expresses that clubs are free to spend as much as they want and from whichever legal sources in the pursuit of victory and once a club are victorious, there is no mechanism in place for bringing its performance down a few notches or moderating it with regards to the performance of other clubs. Despite the freedom of the clubs in spending and lack of assistance by the bodies in the Premier League, other football tournaments impacting much wider economies including the UEFA champions league and FIFA world cup tournaments have bodies with significant rules to ensure financial fairplay give the impact in the eventual tournament fairplay and outcome. Ubaydli (2018) points out the European Financial Fair Play (FFP) regulations as one of such regulations being adopted by the Premier League. The regulations aim to limit the operating losses that clubs can run; as well as parachute payments for relegated clubs to soften the financial impact of departing from the Premier League. Moreover, Cortsen (2014) also highlights that TV revenues are redistributed so that while the best teams earn the highest amounts, they earn less than they would if they were able to freely negotiate directly with media companies. As a result just like in capitalistic economies where a select number of organizations become successful and gain superiority over others, in the premier league and a wide range of other tournaments as well as in the general football industry, a small number of clubs gain superiority and dominate over the others. Ubadyili (2018) highlights that a small number of clubs, including Manchester City, Chelsea, and Manchester United, have entered a virtuous cycle of spending and success, while several other clubs are locked into vicious cycles - akin to poverty traps - eternally cast to the status of EPL bottom-feeders.

2.5: Impact of the Premier League

The premier league and the general professional football industry in the UK has had significant impacts that transcends sporting and football, into the economy as well as the social and cultural lives of the UK nationals. According to Delaney (2019), the football industry and sports in general is delivering a wide variety of benefits to communities and individuals, including economic growth and prosperity, providing employment opportunities and contribute towards raising aspirations and increasing skill levels. Other than the employment opportunities afforded to international and local football players, their coaching staff, Agents and club management and governance staff, the industry has also impacted other industries within the Economy of the UK including: the Broadcast and press, airlines and other transport industries, Cloths, Appareal and Fashion industries, shoe industries as well as general businesses around the club stadiums and premises (Veevers, 2019). According to Lange (2019) the Premier League is the leading football league not only in terms of media rights value in Europe but also has the highest revenue and brand value of football leagues worldwide. The average attendance at games of the Premier League throughout the past years was at around 38,495 after which the average game attendance of the Football League Championship ranks second highest of football leagues within the United Kingdom with 20,0489 attendees on average. Veevers (2019) point out that the average annual revenue for the premier league in media rights in Europe, the Middle East and Africa averages £ 753.6 million while the tool kit sponsorship deals amount £ 349.1 million. Nixon (2019) further highlights that the top flight football in the UK contributes up to £8 billion to the UK economy annually and has seen has had an 800% increase in its contribution to the UK economy since the end of the last century. In addition according to Premier League (2020), the first division alone, consisting of 20 teams, supports up to 100,000 jobs, contributing £3.3 billion to the UK treasury in taxes annually and has up to 686,000 individuals traveling around UK to watch games within a single year. These figures extrapolated across the entire industry illustrate a significant economic impact of football in the UK and highlights the level of significance and importance it portrays to the UK population. Veevers (2019) further points out that football also emphasizes social cohesion with the game being played down to the grass root level and affecting and impacting community unity and eventual societal identity and culture.

2.6: Conceptual Framework

According to Jabareen (2009), conceptual framework is a network drawn linking constructs and concepts with assumptions of knowledge on nature of reality and way things are with consideration of how things work. A conceptual framework largely represents a synthesis of literature that explains a phenomenon. The framework maps the course of the entire study as noted through prior knowledge and observations. In this case, the research narrows down to examination of the differences between the professional football industry business environment and the General business environment with a specific bias to the manufacturing and distribution industries. While the football business effectively operates within the mixed economy of the UK its eventual performance in the last two decades in the face of economic downturn and political activities and occurrences as highlighted in the literature suggests a possible differences between the business environment of the professional football industries and the general business environment specifically the manufacturing and distribution industry. Evaluation of the business environment according to the PESTEL and SWOT model effectively highlights the significant external and internal factors to be considered in highlighting any differences between the two mentioned industries (Woodruff, 2019). External factors suggested by the PESTEL model including: Political, Economic, Social, Technological, Environmental and Legal factors that impact both industries and the evaluation of the Strength, Weaknesses, Opportunities and Threats of the two business environments through SWOT analysis will effectively highlight any differences in the internal and external environments of the football and manufacturing industry eventually highlighting any overarching impacts that the football economy has had and continues to have on the UK environment.

Chapter 3:

3.0: Research Methodology

3.1: Introduction

Research methodology includes the description of the actual methods to be utilized in the conduction of the actual study process in order to be able to derive inferable findings. According to Kumar (2005), the adoption of science and scientific perspective in the various activities and endeavors that comprise the research work clearly defines what research methodology is. The chapter sequentially outlines the procedures as well as other activities that are actually involved in collection of data to produce information useful in deriving inferences regarding the topic of study from the relevant available sources. As such within this chapter a conclusive discussion of the research Approach, research method, data collection methodology as well as the analysis method and ethical consideration will be carried out.

3.2: Research Approach

A research approach refers to a procedural plan that consists of the broad assumptions which are necessary in concluding the course of the research (Woo et al. 2017). Three major research approaches are always considered depending on the nature of the research, including; the deductive approach, inductive approach and abductive approach. The deductive approach would largely tests the validity of any noticeable assumption. The approach starts with simple facts, referred to as hypotheses, which have to be supported or rejected in the course of the research. The basis of deductive reasoning is the premise, before proceeding to the inference. On the other hand, the inductive approach does not involve development of the hypotheses rather; the approach starts from the aims, research questions and objectives as the genesis of the research process. Notably, a comparative analysis of the business environment within the professional football industry and the general UK business sector is constructed on the research aim and objectives (Tjora 2018). Building from this, inductive approach is best suited for evaluating the business environment of the football industry with a special focus on the premier league, identify the major differences and similarities that the professional football industry business environment has with the general business environment in the UK as well as establish the major impacts that the professional football industry has had on the UK economy.

3.3: Research Method

A research method refers to a systematic plan that can be used in conducting research. Three common methods exist to guide researchers especially in social sciences, these include: quantitative, qualitative, and mixed method research. The three highlight platforms that establish the grounds for a collection of tools to be used in a research process (Mackey and Gass 2015; Silverman 2016; Taylor et al. 2015). The qualitative research however is largely an explorative research that garners the understanding of the phenomenon through reasons, motivations, and opinions. It is used in availing insights linked to the research problem and helps in developing ideas concerning the research aims and objectives and as such highlights the most suitable research method for use in the current study.

3.4: Research Design

Research design largely denotes the strategy chosen for integrating significant components behind a study in a logical and coherent way. This ensures that that the research takes note of the research problem while forging a blueprint meant for collection, measurement as well as analysis of data. In the comparison of the general business environment to the professional football industries business environment, the research has a pool of options with regards to the research designs (Marczyk et al. 2017). First, the action research design follows a cycle where the exploratory stance is effectively adopted. This brings in the essence of understanding the problem before producing an interventional strategy. The action research design fosters pragmatic as well as solution-driven research, which is better than simply testing various theories.

3.5: Data Collection Method

This is an essential part of the research that adopts key tools to be used in collecting data. Given the nature of the study being a qualitative study, qualitative tools would be more convenient for collecting data. Some of the tools include interviews, questionnaires and surveys, case studies and document records, observations, focus groups, ethnographies, and oral history. In this research however systematic review of available literature regarding professional football economy and business environment as well as the similarities and differences it has with the general UK business environment will be used for collecting data. A systematic review involves appraising previous studies and synthesizing findings either quantitatively or qualitatively using a systematic approach in collecting secondary data. It plays to the advantage of the empirical association where valid conclusions are effectively and sufficiently based on the findings. In attempt to attain research objectives in a manner that captured all the variables and research questions, this study followed qualitative approach collecting data from secondary source through systematically reviewing existing articles (Bernard et al. 2016). The secondary data collection method encompassing careful planning and documenting various articles capturing a wide data from previous structured and reviewed studies related to research topic. Ideally, adopting this data collection mechanism was informed by assumption that the field was extensive explored previously by vast number of researcher, hence time saving and cost-efficient accessing secondary data rather that collecting directly from existing populations.

Notably, the research captured key findings from the documented records, which will mostly constitute journal articles published over the recent times, press and club conferences and articles, as well as books and relevant websites (Taylor et al. 2015). The adoption of systematic reviewed was largely due to a number of advantages the tool provided to this research. Systematic reviews are largely comprehensive in that they attract the process of social research as one way of expressing the attitude, opinions and the behaviors that can be noted across common settings. However, systematic reviews would still suffer from limited representatives, which make generalization impossible in any research. Systematic reviews bear no fixed limits and would depend on a situation and dynamics that regulate the outcomes (Mackey and Gass 2015). Regardless of the shortcomings, case studies would offer a significant support to the research process by providing pieces of evidence that can be aligned to the research objectives.

3.5.1: Selection of material

In articles identification, keywords were keyed into the following databases namely EBSCO, Google Scholars, Proquest, ScienceDirect, Scopus, Sage Journals, JSTOR and Emerald. Fundamentally, the search was conducted based on research objectives and following core variables. Key words included Professional Football Industry, football economy, Premier League, Business environment and economic impacts. In addition the search was also focused on the various components of the internal and external football business environment, impact of the premier league to the UK economy as well as differences between the football and general business environment. While no specific time limit was placed in the research material the majority of the articles were published not earlier than the year 2000.

3.5.2: Inclusion and exclusion criteria

While research method and data collection method form the critical components of the research process, the sampling procedure is equally important. This means that a criterion was set up to establish the articles to be selected from a possible vast number returned from databases search. There are many sampling procedures that the research is likely to encounter (Gorny and Napierała 2016).

3.6: Data Analysis

Data analysis is regarded as a process meant for inspecting, cleansing, transforming as well as modeling data with the central purpose of discovering significant details, support key decisions and inform on the conclusions. While figures would be noted in some of the cases studies sampled for this research, the presumption is that the data collected will be qualitative, and therefore call for the qualitative data analysis techniques (Agresti 2018). The research took advantage of the content analysis, which is known for being the research technique meant for replicating, making valid inferences, and interpretation of the textual materials. It includes evaluating the data and information captured by selected articles and documents focusing on texts, graphics, and even oral communication from each then working towards making sense of such data (Hounslow 2018).

3.7: Ethical Consideration

The research makes use of secondary data, which means that there will be limited/No human interaction. However, ethical concerns are still necessary whether a research is using primary or secondary data. While weighing out on the burdens and benefits, it can be noted that secondary data maximizes the value of data collection. it substantially reduces the burden that would have been felt by the respondents, and provides a replica of the findings (Stemler 2015). However, the major concern of this study on elements within ethics was accuracy, relevance, and reliability of data, findings, and discussions by making sure all data and information either data collected or review articles (captured under literature review) were collected and appropriately indicated and references. This was essential in ensuring validity and accuracy of literature.

Chapter 4

4.1: Data and Findings

The aim of this study was to evaluate the difference between the professional football industry and the general business environment in the UK. Through evaluating the football industries business environment including both internal and external environment and comparing them with the manufacturing and distribution industries business environment, basic differences and similarities can be highlighted to thereby explain the general difference in the impacts to the economy. In striving to attain this aim and stipulated objectives, this study followed a qualitative research approach employing systematic review of existing literature highlighting a SWOT and PESTEL analysis of both the manufacturing and distribution industry and football industries.

4.2: External Business Environment of the football industry

An evaluation of the professional football external environment was conducted with a PESTEL analysis of the industries business environment. Two sources highlight the external environment of the professional football industry are highlighted in the findings. The impact of some of the external environmental factors is discussed in the analysis and discussion chapter to highlight the differences and advantages they have on the football business environment against the manufacturing and distribution environment.

4.3: Internal Football Business Environment

An evaluation of the professional football internal environment was conducted with a SWOT analysis of the industries business environment. Two sources highlighting the internal environment of the professional football industry are highlighted in the findings. The impact of some of the internal environmental factors is discussed in the analysis and discussion chapter to highlight the differences and advantages they have on the football business environment against the manufacturing and distribution environment.

Chapter 5:

5.0: Analysis and Discussion

5.1: External Environment

While the professional football industries external environment is more or less similar to the general business environment highlighting impact from factors such as political stability and policies, technological, legal as well as environmental factors, the setting of the industry means that the impact of these factors may be significantly different in the football environment as compared to the general business environment. StudFiles (2018) points out that the game is eventually significantly impacted by the level of political stability within the country, economic factors including shifts in economic climates as well as increased immigration of people into the country. However while these external factors impact the game and by extension the business environment, the impact in the football environment is often significantly different to that of the general business environment like the manufacturing industry. For instance according to Travis (2018) political factors such as stringent employment laws among players, consumer protection and imposition of high taxes all impact both the General and football environment and while in the business environment a single individual may be key to the business outcome and thus significantly impact organization profits and revenues, a single player within a football club does not impact the entire premier league or even the club itself as such the business is not significantly impacted and still shows levels of success eventually. Economic factors equally function in the same sense, According to Manolli (2017) essentially, while in general business environment factors such as inflation, rising interest rates, rising unemployment and other shifts in the economic climate significantly impact organization financial aspects and ability to continue consistent production thereby eventually impacting a loss, the compactness of the teams in the Premier league as well as the rules of participation ensure that games are played despite any economic downturns. This can also be attributed to be as a result of the social business environment which consist of a highly diversifies society which is inspired by the game and thus will always tune in to watch the games and attend the live matches translating to an unwavering club loyalty which significantly impacts the continued growth and success of the economy even in the face of economic shifts and downturns. Further while legal regulations and rules exist in the general business environment which effectively control spending and investment in these businesses so as to ensure economic equality among all players, the regulations available for the regulation of football clubs only apply to their external activates and participation, but the club internal spending is unlimited pointing out another difference and reason for continued success despite economic turmoil’s. Generally the external business environment of the football industry and the manufacturing business industry are impacted by similar characteristics, however, the setting of the football industry with clubs being considered assets rather than organizations or companies imply a different impact of these factors to the business environment (Travis, 2018).

5.2: Internal Business Environment

The internal business environment of clubs and the premier league equally highlights similar factors in employees’ effectiveness, resources as well as opportunities and threats that impact the performance of the club. Just like any organization which relies upon structure, staff, system, skill, strategy and shared values to develop effective business and organization culture for operation within the organization, football clubs possess all these factors and significantly use them in the pursuit of success. Internal factors including marketing, consumer engagement and retention highlight some of the internal aspects of business environment where the football industry differs from the general football industry. For instance while manufacturing and business organizations have to employ marketing and sales strategies to be able to capture the market increase their revenue and be successful and profitable, Football clubs simply need to buy good players, apply effective playing strategies and win matches and their market is assured. This is clear given one of the strengths of the Premier League according to Stud Files (2014) include global reach and support. The clubs in the premier league in addition, have effective structures and continue to provide high quality professional football which impacts their viewing and increase market globally (Ume, 2018). Availability of technological developments enables increased broadcast and analysis of the games which subsequently increase the consumers’ match day experience enhancing increased broadcasting and subsequently increased revenue and profits despite any economic down turns. A variety of opportunities in the premier league and professional football clubs exist including the freedom of spending in the club with the aim of winning competitions, this highlights another difference with the general business environment as investment are often directly linked to return on investment which is not very strictly adhered to in the football economy. Some of these strengths, however for instance, the freedom to spend amounts a great risk to the potential of the league being washed up. Companies and organizations spending according to (Ume, 2018) is often restricted in order to facilitate equal competitive chances and ensure big companies do not monopolize resources and disadvantage small businesses, however the freedom being legally allowed in the professional football economy, means big clubs can spend as much as they want meaning a possible threat of few clubs staying at the top and wining all competition at the expense of all other clubs which cannot match the financial muscle. Eventually the internal environment of the football industry is effectively differentiated from the business industry as well due to the setting of the clubs as assets rather than organization and companies enabling the possibility of all the benefits associated with it.

6.0: Conclusion and Recommendation

6.1: Conclusion

Eventually, due to the significantly limited impact and control of the clubs unlike companies and organizations, the premier league and the general football industry provides a significantly differentiated business environment with a majority of benefits and advantages over the general business environment and can thus be attributed to its consistent and continuous success. Both the external and internal factors significantly impact club operations and organizations however the impact is less impactful given the lack of control of the competitions and tournaments by the government or economic guidelines. Political, economic, social and technological factors all impact individual club decisions and employees however the impact is not significant enough to affect club performance in a majority of the cases as such the league remains minimally impacted highlighting consistent performance and success. While environmental and legal factors exist and often impact businesses directly limiting production and distribution activities given their application in the entire general business environment, within the football industry these factors significantly impact clubs and not the industry as such has a limited eventual impact of the Leagues success. The league is increasingly well known globally providing a tested and available market which leads to the success of the league regardless of which team wins the league. Eventually the economic performance of the football business is more significantly tied to the availability of games for supporters and fans to watch and pay for throughout the season/year rather than the performance of the various teams within these games. As long as teams are available to participate in the league, its economic benefits and success are bound to be realized. The teams however, are directly impacted by both internal and external business factors and as such their performance on the field and financially may be significantly impacted.

6.2: Recommendations

Based on findings attributing the success of the premier league and the general professional football environment to its detachment from team and club successes the following recommendations are made to impact the general business environment

Minimizing the rules and regulations within the general business industry to limit the impact of economic downturns, recessions and any impactful event

Establishing a more independent economy which enhances investor participation and success

References

Conejo, R., Pino, J., Dominguez, J. and Guerrero, P. (2007). The economic impact of football on the regional economy. International Journal of Sport Management and Marketing, 2(5/6), p.459.

MANOLI, A.E., 2014. The football industry through traditional management analysis. Scandinavian Sport Studies Forum, 5, pp.93-109

Roberts, A., Roche, N., Jones, C. and Munday, M. (2016). What is the value of a Premier League football club to a regional economy?. European Sport Management Quarterly, 16(5), pp.575-591.

Wilson, R., Plumley, D. and Ramchandani, G. (2013), "The relationship between ownership structure and club performance in the English Premier League", Sport, Business and Management, Vol. 3 No. 1, pp. 19-36