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The Organisation
and Governance of Top
Football Across Europe
An Institutional Perspective
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Contents
List of Abbreviations
Preface and Acknowledgments
1
vii
ix
1
17
LARS-CHRISTER OLSSON
32
BORJA GARCA
46
STEPHEN MORROW
62
ANN BOURKE
77
93
107
123
BENOT SENAUX
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vi
Contents
138
154
168
182
195
HUGO RELVAS
209
CHRISTOS ANAGNOSTOPOULOS
224
JIM RIORDAN
238
VIC DUKE
253
268
293
299
Contributors
Index
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10 German Football
Organising for the European Top
Uwe Wilkesmann, Doris Blutner,
and Christian Mller1
In this chapter we give a brief overview of the history and some characteristic aspects of contemporary German top football and its organisational
framework. We will emphasise three phenomena which are typical for the
German case: (1) the registered association as the (former) typical German football club organisation, (2) the strict licensing regime, and (3) the
joint marketing of broadcasting rights. All in all, the aim of this chapter is
two-fold: to give an overview over the German case and to explain some
typical phenomena.
In Germany football is by far the most popular sport. With 42,500
spectators per match on average the German League has the highest attendances in Europe (Bundesligareport, 2010, p. 13) and the attendance is still
increasing. One plausible reason is the new stadiums that where built for the
2006 World Cup and, in comparison with some other European leagues,
the absence of hooliganism. The German Football Association (DFB; hereafter German FA) comprises 25,703 clubs, 177,039 teams, and 6,756,562
single members (in 2010) and is the largest and richest single sport association worldwide. In 2010 the Bundesliga was fourth at the UEFA league
coefficient ranking, closely behind Italy. It is now about to step forward to
the third rank allowing a fourth team to qualify for the UEFA Champions
League. Its best performance was during the 1980s and at the beginning
of the 1990s. During these periods the German League was the number
one league in Europe. Nowadays, the German Leagues governing bodies
work hard to regain its former recognition. In fact, the professionalisation of German football is pushed forward mainly by this competition. In
alignment with Gammelster and Senaux (Chapter 1) we can defi ne this
competitive approach as institutional logic. The shift from the genuine registered association to a company mode within the clubs, the struggle over
the allocation formula for the gains from broadcasting rights, and the strict
licensing regime that prevents bankruptcy of clubs are all jigsaw pieces to
strengthen the competitive position of German football.
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140
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Structure of the Clubs in the German 1st and 2nd League in the
20082009 Season
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148
revenue than a match between two of the less successful clubs. Moreover,
large clubs compare themselves more to internationally successful clubs
than to smaller clubs in the German League. In a democratic association
with a bottom-up decision-making process, we will expect that the majority, which in the German League are the small clubs, will push towards the
equal distribution rule. As we will see in the following, this is not the case.
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150
The most important reason is that small clubs perceive themselves as big
clubs. Even if they are playing in the 2nd league they imagine that they are
playing next season perhaps in the Champion League. Therefore, they compare themselves with the big clubs in other European leagues. The few clubs
perceiving themselves as small clubs are mostly elevator clubs (moving
up and down between the two leagues). Another reason is that the two or
three clubs that move up from the 3rd to the 2nd league are new members
of the League. Often these clubs have no experience and understanding of
how to act professionally within the association. A third reason is the lack
of professionalism in small clubs. They have little experience in lobbying,
few resources for supporting strategic decisions, less knowledge of internal
affairs in the League, and, therefore, the allocation formula was difficult
to understand for freshmen (see next paragraph). Moreover, in the past
directors of the League usually were coming from big clubs.
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Club
Bundesliga
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Total
Bundesliga 2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Total
Percent
Share in !
5.76
5.60
5.44
5.28
5.12
4.96
4.80
4.64
4.48
4.32
4.14
3.96
3.78
3.60
3.41
3.22
3.05
2.88
78.44
23,443,200
22,792,200
22,140,800
21,489,600
20,838,400
20,187,200
19,536,000
18,884,800
18,233,600
17,582,400
16,849,800
16,117,200
15,384,600
14,652,000
13,878,700
13,105,400
12,413,500
11,721,600
319,250,800
1.84
1.72
1.60
1.49
1.39
1.29
1.21
1.14
1.09
1.05
1.03
1.01
0.99
0.97
0,95
0,94
0.93
0.92
21.56
7,488,800
7,000,400
6,512,000
6,064,300
5,657,300
5,250,300
4,924,700
4,639,800
4,436,300
4,273,500
4,192,100
4,110,700
4,029,300
3,947,900
3,866,500
3,825,800
3,785,100
3,744,400
87,749,200
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152
The pot for 20092010 totals !30 million and will increase to !45 million until the end of the current sales period of TV rights lasting until
20122013. In 20092010 each Bundesliga club received a share of an
amount of !19 million related to its fi nal position in the league ranking.
The German Champion in the 20092010 season was rewarded !2.75million, the second !2.25 million, the third received !1.75 million, and the
fourth and fifth club !1.25 million each. The remaining amount of !9.75
million was evenly distributed among the other 13 clubs.
The remaining share of !11 million is distributed to the clubs with
appearances in the UEFA competitions within the last five years preceding
the current season. These are the clubs that have scored the UEFA coefficient of the German League. The clubs received their share of this pot
according to their contribution to the German coefficient. Applicable to the
20092010 season when the shares amounted to !11million, the largest
shares of roughly !2.4 million went to Bayern Munich and Werder Bremen
who both qualified for the UEFA competitions in all five years.
CONCLUDING REMARKS
Historically football in Germany is rooted in the non-profit sector. However, in the context of the increasing competition with the other four big
European leagues, we observe patterns of reorganisation, professionalisation, and commercialisation. Changes in the organisational structures
of football clubs and their decision-making processes, negotiations about
the allocation formula for distributing broadcasting incomes, and the
strict licensing regime are examples of this development. During the last
30 years German football has developed its own societal subsystem with
its own democratic governance structure, political tactics, an economic
system with more than !2 billion annual revenue, and more than 37,000
employees in 2009 (Bundesligareport, 2010). This societal, economic, and
scientific phenomenon is of high interest and should correspondingly be
investigated further by means of empirical research (e.g., Franck & Mller,
2000; Wilkesmann & Blutner, 2007).
NOTES
1. The authors are grateful for comments on previous drafts of this article by
the editors and Maximiliane Wilkesmann.
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REFERENCES
Bundesligareport. (2006, 2009, 2010). DFL. Frankfurt am Main.
DFB. (1998, October 24). Protocol German FA Congress.
Franck, E., & Mller, J. C. (2000). Problemstruktur, Eskalationsvoraussetzungen
und eskalationsfrdernde Bedingungen sogenannter Rattenrennen. Schmalenbachs Zeitschrift fr betriebswirtschaftliche Forschung (zfbf), 52, 325.
Hirschman, A. O. (1970). Exit, voice and loyalty. Boston, MA: Harvard University Press.
Meller, C. (2005). Kostenkontrolle und Wettbewerbssicherung durch Lizenzierungsverfahren. In M.-P. Bch & H. M. Schellhaa (Eds.), konomik von
Sportligen (Vol. 33; pp. 5375). Schorndorf: Verlag Karl Hofmann Published in
English: Club licensing as a means to control costs and to safeguard the integrity of the game: The example of the Bundesliga. Malm: Svensk Idrott Juridisk
Foerening, 2004 (pp. 277299).
Olson, M. (1965). The logic of collective action. Boston, MA: Harvard University
Press.
Wilkesmann, U., & Blutner, D. (2002). Going public: The organizational restructuring of German football Clubs. Soccer and Society, 3, 1937.
Wilkesmann, U., & Blutner, D. (2007). Brot und Spiele. Zur Produktion und Allokation von Clubgtern im deutschen Profi fuball. Soziale Welt, 58, 5574.
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Contributors
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294 Contributors
Cristina Bofarull is research assistant at IESE Business School CSBM
(Center of Sport Business Management). Her research interests include
organisation studies, strategic management, organisation and leadership, and professional career of sportsmen. Email: cbofarull@iese.edu
Ann Bourke is vice principal for teaching and learning in University College Dublins (UCD) College of Business & Law. In that role she contributes to University Education policy development and implementation.
Her research interests include curriculum design and development, elite
athlete career choice, governance of sports organisations, and professional development in the healthcare sector. She has published on educational, sporting, and business matters and is currently a member of
the European Association of Sport Management (EASM) Board. Email:
Anne.Bourke@ucd.ie
Raul Caruso is currently research associate at the Institute of Economic
Policy, Universit Cattolica del Sacro Cuore di Milano (Italy) where he
is also serving as adjunct professor of international economics. He is
also visiting professor at Warsaw University (Poland). His main research
interests are peace economics, international political economy, and sport
economics. He has published several peer-reviewed articles on contest
theory, sport economics, economic interpretation of terrorism, economic
causes of wars, and international economic sanctions. He is associate
editor of Rivista di Diritto ed Economia dello Sport (Review of Law
and Economics of Sport). He is also editor in chief of Peace Economics,
Peace Science and Public Policy. Email: raul.caruso@unicatt.it
Tamas Doczi is assistant lecturer in the faculty of physical education and
sport sciences at Semmelweis University in Hungary. He earned an M.A.
in English linguistics and literature, and one in sociology. He is currently
conducting his Ph.D. studies on social change in Hungarian sport, with a
specific focus on national identity. He is the co-author of the first Hungarian sport sociology textbook. His main research interests include globalisation, national identity, and football fandom. Email: tomdoczi@gmail.com
Vic Duke is a political sociologist who spent his career at the universities
of Salford and Liverpool. Now early retired, he retains an active interest in football research. He has published widely on the politics and
sociology of football. He is the author of Football, Nationality and the
State (Longman, 1996) and A Measure of Thatcherism (Harper Collins
1991), as well as several articles/chapters on Eastern European football.
Email: vicduke@btinternet.com
Andrea Gal is senior lecturer in the faculty of physical education and sport
sciences at Semmelweis University (Hungary). She graduated as a P.E.
3/4/2011 4:22:24 PM
Contributors 295
teacher and a sociologist. She earned a Ph.D. in sociology focusing on
issues around gender perception in sport. She has co-edited two books in
Hungarian, one of which was the fi rst Hungarian textbook in sport sociology, and one in English. Her main research areas include women in
sport, sport and the media, and sport-specific migrations. Email: gala@
mail.hupe.hu
Hallgeir Gammelster is professor in social change, organisation, and
management at Molde University College, Norway. Before taking up
sport studies, in particular the organisation of football (soccer), 10 years
ago he had done published research on organisation change, management in professional organisations, knowledge diffusion, and innovation
in private and public institutions. He has co-authored several Norwegian books and has recently published on the organisation of football
in journals like Soccer and Society, and European Sport Management
Quarterly. Email: hallgeir.gammelsater@himolde.no
Borja Garca is lecturer in sport management and policy at the School of
Sport, Exercise and Health Sciences (Loughborough), where he undertakes
teaching and research within the Institute of Sport and Leisure Policy. His
research interests focus on the origin and development of European Union
Sports Policy and the governance of professional sport, especially football.
Borja Garca is one of the founders of the Association for the Study of
Sport and the European Union. Email: B.Garcia-Garcia@lboro.ac.uk
Sandalio Gmez is professor of managing people in organisations at IESE
Business School, University of Navarra, Madrid. He is also president
and academic director of the CSBM Center of Sport Business Management. He holds the SEAT-IESE Chair of Labor Relations. His researches
are focused on four main areas: strategic management; marketing and
sponsorship; structure, organisation, and leadership; and professional
career of sportsmen. Prof. Gomez has published numerous articles,
cases, and technical notes, as well as the following books: Labor Relations in Europe, Toward a European Board of Directors, and People
and Work in Businesses of the 21st Century. Email: sgomez@iese.edu
Nicolas Huber holds a masters in international relations and in public
administration, both from the University of Geneva, Switzerland. His
research interests include stadiums as well as history of sport. Email:
nicofhuber@yahoo.fr
Steffie Lucidarme is a Ph.D. candidate in sport management at the department of Movement and Sports Sciences at Ghent University. Her research
interests include sports policy, performance management, and interorganisational relationships. Email: steffie.lucidarme@ugent.be
3/4/2011 4:22:24 PM
296 Contributors
Carlos Mart Sanchis is professor and MBA and executive MBA program
director at Barna Business School (Dominican Republic), research associate at IESE Business School, and associate professor at University of
Navarra, Madrid. He is also visiting professor at Swiss University Educatis Graduate School of Management and collaborates in different postgraduate programs and workshops for executives. He received his Ph.D.
from Complutense University, a MSc. from Clark University, and a BAJ
from University of Navarra. His areas of expertise and research include
strategic human resources, organisational communication, labour relations, and organisational behaviour. Email: cmarti@iese.edu
Gyozo Molnar is senior lecturer in sport studies in the Institute of Sport
and Exercise Science at the University of Worcester (UK). He completed
his doctorate in the sociology of sport at Loughborough University, was
the coordinator for the Centre for Olympic Studies and Research. His
current publications and research revolve around migration, football,
globalisation, national identity, the Olympics, and sport-related role
exit. He is co-editor (with Alan Bairner) of The Politics of the Olympics
(Routledge, 2010). Email: g.molnar@worc.ac.uk
Stephen Morrow is senior lecturer and head of the Department of Sports
Studies at the University of Stirling. His research concentrates on fi nancial aspects in sport, particularly in the football industry. He is the
author of The Peoples Game? Football, finance and society (Palgrave,
2003). Email: s.h.morrow@stir.ac.uk
Olivier Mutter is a Ph.D. candidate in sport management at the Swiss Graduate School of Public Administration. He is a lecturer in sport events
management and territorial development at the University of Lausanne,
Switzerland. His research interests include sport events hosting policies
and football. Email: olivier.mutter@idheap.unil.ch
Christian Mller was CFO of the DFL Deutsche Fuball Liga GmbH from
2001 until March 2010, responsible for fi nance and licensing of German
Professional Football. He now works as an advisor to the management
board of DFL. He is a member of UEFAs Club Licencing Commission
and EPFLs Standing Committee on Professional Football Finance. His
special interest and involvement focus on the newly imposed Financial
Fair Play concept and the phenomenon of overspending in player talent.
Email: cm.co@t-online.de
Lars-Christer Olsson is active as a consultant in sports management and
organisation development and has previously served as general secretary
in the Swedish Football League, general secretary in the Swedish Football Association, and CEO of UEFA (20032007). Over the past years
3/4/2011 4:22:24 PM
Contributors 297
he has been focusing on how sports can utilise the development in the
new media sector to the benefit of sports communication and marketing.
Email: l.c.olsson@gmail.com
Michiel Pieters is postdoctoral researcher at the Department of Organisation Studies at Tilburg University, the Netherlands. His research
interests include social network analysis, open innovation, R&D collaborations, and multi-partner alliances. Since 2009 he has served as
a board member at the Dutch Football Association. Email: mpieters@
pmarbeidsreintegratie.nl
Hugo Relvas has a Ph.D. from the Liverpool John Moores University in the
field of youth talent development, youth talent promotion to professional
environments, and within-career transitions in football. At present he
is technical football analyst for Amisco/wTVision working on a project
developed with the Portuguese League to provide match analysis services to the premiership Portuguese clubs. He is also the responsible for
Amisco Systems in Portugal. Email: hrelvax@portugalmail.com
Jim Riordan is emeritus professor in Russian studies at the University
of Surrey, and visiting professor in sports studies at the University of
Worcester. He has worked in Moscow for 5 years and has written extensively on Soviet and Russian sport, including Sport in Soviet Society:
Development of Sport and Physical Education in Russia and the USSR
(Cambridge University Press, 1977) and Sport Under Communism in
the USSR, Czechoslovakia, GDR, China and Cuba (C. Hurst, London,
1981). He is president of the College of Fellows of the European Sports
History Association (CESH) and editor of the associations journal.
Email: jim.riordan@ntlworld.com
Tom De Schryver is assistant professor at the School of Management and
Governance of the University of Twente. His research interests are organisational learning, organisational and managerial attention, and management and accounting control. He holds a Ph.D. from the Radboud
University Nijmegen in which the organisational learning processes after
performance feedback of Dutch football clubs have been studied. Email:
T.deschryver@utwente.nl
Benot Senaux is senior lecturer in sport management at Coventry University (UK) and a member of the Centre for International Business of
Sport. Prior to that, he was associate professor in management control
at Reims Management School (France), during which time a significant
part of this book was written. His research focuses on institutional
change and the commercialisation of sport, and its impact on clubs
organisational identity and governance. He has published articles on the
3/4/2011 4:22:24 PM
298
Contributors
3/4/2011 4:22:25 PM