Corporate governance of Professional

football clubs: For Profit or for Glory?

PGP13112- Sahil Dhingra

PGP13113- Samarjyoti Das

PGP13114- Sankar S

PGP13115- Satya Prakash

PGP13116- Saurabh Anand

PGP13117- Senthil Kumar

PGP13118- Shital Kumar

Case Overview

Commercialization of football

Ownership and investment model of clubs

Roles of FANS in running the clubs

Struggle to enter professional business

Frequent changes in kick off time

Bankruptcy

Supporter’s Direct and Tomorrow’s Company

Stakeholders, their ‘stakes’ &

legitimacy of the interest

Players:- Recreation, livelihood, High Salary

Fans:- Entertainment, Association,

Owners:- Profit, Branding, Association, High

ticket prices, High Debt/Equity ratio

Advertisers & Broadcasters:- Business, Promotion,

Kick off times

Sponsors:- Self Branding, Association, Promotion,

Merchandisers:- High prices

Key governance Issues

Kick off time

Scandals, Corruption

Bankruptcy, high debt

Role of Fans

Struggle to enter world of professional business

Shift from stadium to TV

Potential Solutions

Fans led club regulated by govt. regulators

Games for entertainment, not for money

More adrenalin, less branding

Lesser prize money, more recognition

Nurturing local talent

Alternative employment

Who should be ‘Owners’ and their

priorities?

Fans owned like Bundes liga, Germany

Nurturing local talent

Owner’s eligibility

Should have clean track record and not be governed

by profit only

Cooperative model instead of company model

Benchmarking with Amul, Grameen Bank

Player’s stake in team instead of hefty fee.