| By: |
BALLIAUW, Matteo;
VERLINDEN, Thomas;
DE CROOCQ, Lisa;
FOBE, Aline;
VAN DEN SPIEGEL, Tomas |
| Abstract: |
Corporate Sports Hospitality (CSH) is a relationship marketing tool whereby
customers and other stakeholders are invited by a company buying CSH from a
club to attend a sports game. The CSH product involves premium seating and
optional services such as catering. Little academic research about the CSH
industry has been performed in the past. Moreover, this industry has been
perceived to be in decline, especially in times of economic downturn when
companies need to justify every cost expenditure. This paper quantifies the
added value of CSH. A case study from the highest division in Belgian football
(soccer) shows that, although the market is smaller than in the American major
sports leagues, CSH returns account for an important share of club revenues.
Through Porter’s Five Forces framework, we show that a club experiences the
strongest competitive impact from substitutes and other clubs in the league.
Since CSH is often managed on an ad-hoc base and the literature offers no
formal CSH management process for companies and clubs, information is gathered
to build such an effective process. It allows both clubs as well as CSH buying
companies to define their objectives and measure their performance in a
quantitative way through Key Performance Indicators (KPIs). Not only return on
investment, but also return on other objectives matters. We moreover argue
that measuring the output through these KPIs and improving the process
according to feedback loops are crucial for successful CSH. To improve CSH
attractiveness, sufficient attention should be given to technological and
managerial innovations. |
| Keywords: |
Luxury seating, Venue revenues, Management process, Sports marketing |
| Date: |
2018–06 |
| URL: |
http://d.repec.org/n?u=RePEc:ant:wpaper:2018008&r=cul |