
FC Premier:
Introduction
The football industry is known for being a profitable industry where football clubs generate revenue from several sources, such as sponsorships, online retail resources, player transfers and TV rights. The World Cup, for example, is one of the most-watched sporting events in the world and generates billions of dollars for FIFA (football's world governing body). The football industry is known for hosting a popular sport that unites communities and breaks down cultural barriers. One such club operating in the industry is FC Premier, a mid-tier professional football club facing financial and on-field challenges. Unlike other clubs of their size and stature, profits have declined. Founded in 1908, today (2020) FC Premier has a football stadium with a large open roof, 20,000 season ticket holders, 50 sponsors, seating for 60,000 fans and spectators and operates with a £20 million budget.
Problem statement
Once the pride of the West, the Club has seen profits decline over the last four quarters, a probable result of ineffective player recruitment, poor scouting and inadequate talent development. The club is having to deal with a subpar coaching staff who have limited experience and uses outdated tactics. An ageing infrastructure at the club contributes to an outdated stadium with inadequate training facilities. Management admits there is insufficient marketing, a weak social media presence and ineffective branding. On the financial side, poor financial management has contributed to insufficient budget allocation and high player wages.
FC Premier needs to resolve this issue to be more competitive and compete in bigger prize money competitions. They also need to attract talent and be able to pay above-average wages to be successful in domestic league, European and International club tournaments.
Actions steps
To tackle these critical issues, the consultants are tasked with providing recommendations on most aspects of the football club's operations. For example, player recruitment, coaching staff enhancement, youth development, marketing and branding, social media strategy, sponsorship deals, acquisitions and rebranding. Then there is Infrastructure development, stadium renovation, training facility upgrades, financial management, budget organisation, cost reduction, revenue growth, fan engagement, matchday experience, community outreach and loyalty programmes.
These steps need to be strategically planned and executed:
1. Improve team performance and achieve a top-half league finish within two seasons.
2. Increase revenue, boost sponsorship, ticket sales and merchandise by 15% within 18 months.
3. Enhance fan engagement: Increase social media followers by 50% and attendance by 20% within 12 months.
Key considerations:
The most important things to consider when making recommendations based on the context of the problem statement are:
Also consider whether the club is creating enough value for the fans, as a decline in profits may point to this.
Data
The data needed to reach conclusions and provide recommendations to the client includes the club's historical financial statement (2015 - 2020), team player performance metrics (league standings, player stats), Industry reports (Deloitte football money league) and market research reports.
When providing recommendations
When developing and providing recommendations, the club's supporters should be considered and listened to. Most fans of football clubs want to feel like they are part of a community that shares their passion for the game. They also want to be entertained, feel like they can be part of something successful and feel they are emotionally invested in the club and the players. The football club may want to consider long-term financial stability over short-term gains in profitability.
Results
As a result of these interventions, FC Premier should experience improved team performance, an increase in revenue, enhanced fan engagement and increased fan attendance by 20% within 12 months.
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The above case study is totally fictional. We encourage our readers to post recommendations and solutions to the problems and challenges found in this case study to the forum, where you may find similar responses.
Pass answers to this case study may provide evidence to support arguments and consider:
1. Creating strategies to improve performance, player development, marketing and community engagement.
2. Develop and manage budgets to increase revenue
3. Look at operations management to make sure the club's Infrastructure, including the stadium, training grounds, and offices, is well-maintained and meets the needs of the players, staff and fans.
Merit answers should provide very good arguments to support recommendations, supported by critical evidence appropriate to the case study.
To increase revenue, consider ways of cutting costs, increasing ticket sales or improving efficiencies. Provide cohesive arguments for each recommendation and support the arguments with critical evidence.
Distinctive answers should have excellent argument communication informed by compelling and critical use of evidence appropriate to the case study.
1. To engage with fans, for example, the recommendations may advise developing and implementing initiatives to engage with fans, including community outreach programs, fan events and special media campaigns.
2. Charitable Partnerships: Developing partnerships with local charities to give back to the community.
Benefits
What would be the benefits to the football club of implementing the recommended solutions?
