SMGT 506 – Economics and Financial Management of Sport

Research Paper: Outline Assignment

Chet L. Walker

Liberty University

SMGT 506 – Economics and Financial Management of Sport

Dr. Kevin Heisey

18 April 2021

I. Financial Management in Sports: Economic Control and Sources of Revenue in American Soccer

II. Abstract

Financial management in sports has become a significant discipline that affects how professional sports clubs operate in the industry. Significantly, the advancement of economic regulation procedures and transformation of revenue sources has impacted the American soccer sector. The purpose of this research paper is to explore ways these changes have altered operations among professional soccer clubs in America. Additionally, exploring financial aspects based on operations in the American soccer industry is also a key step to understanding the transformation of revenue sources and outcomes of economic control measures.

III. Introduction

In recent years, the American professional sports sector has seen continuous and sustained growth and development, thanks to expanding the North American sports markets (Dimitropoulos, 2014). This research paper explores ways economic control and the transformation of revenue sources have impacted soccer in America.

IV. Supporting Idea 1

A. Market Creation Measures and Economic Liberalization Context

Implementing certain processes, such as the free movement of workers, services, and capital, affected America’s sustained financial liberation process along with the sports sector (Brown et al., 2021).

V. Supporting Idea 2

A. Revenue Evolution Based on Sources and Distribution among Clubs Based on Club Size, and the Significance of American Competitions

a) Revenue Sources. Recent sources may include advertising and commercial agreements, television rights, and stadiums, while past sources are gate receipts (Francis & Zheng, 2010).

b) Distribution. The concentration of significant revenue in America’s major clubs and leagues makes revenue distribution to clubs vary.

c) Significance of American Competitions. The premier American soccer competition league is the Major League Soccer (MLS).

VI. Supporting Idea 3

A. Financial Control Measures

Criteria such as licenses, financial fair play, ex-post supervision, wage cost limitation, and other techniques have been used in regulating American competitions.

VII. Conclusion

In summary, understanding the aspect of financial management in the American soccer sector requires exploring various aspects, such as financial controls and revenue sources. These two factors play a crucial in the control of resources among professional soccer clubs.

References

Brown, M. T., Rascher, D. A., Nagel, M. S., & McEvoy, C. D. (2021). Financial management in the sports industry. Routledge.

Dimitropoulos, P. (2014). Capital structure and corporate governance of soccer clubs. Management Research Review.

Francis, J., & Zheng, C. (2010). Learning vicariously from failure: The case of major league soccer and the collapse of the North American Soccer League. Group & Organization Management, 35(5), 542-571.