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Optimal Strategies in Sports Economics and Management pp 59–85Cite as

Managing and Modeling the Combination of Resources in Professional Sporting Events

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Abstract

With a view towards integrating the Business Model concept into Resource-Based thinking, this research paper questions the concept with respect to its potential for formalizing a firm’s resource arrangement and control methods. The clinical study of three cases of international sporting event organization (Roland Garros, BNP Paribas Masters and Open13) enables a comparison of Business Models which rely on the same pool of resources but which structure and manage them differently. The main result identified in the context of an unstable sports environment, is the importance of such organizations’ aptitude to deploy and control resources which have been built up with certain stakeholders. Beyond the comparison of different Business Models within a similar environment, an empirical sequential approach for building up and managing a firm’s assets is suggested. The analysis of the development of each Business Model also enables us to understand how strategies for limiting the dependence of an organization on the reputation of its main suppliers are rolled out.

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Notes

  1. 1.

    Convention theories, Resource-Based View approach, stakeholder theory.

  2. 2.

    The investigation began in 2001 and continued until 2008 following the approach detailed above.

  3. 3.

    IMG is one of the largest sports marketing agencies in the world; its activities are associated with the management of TV rights, image rights for major sports figures (Tiger Woods, Michael Schumacher, Roger Federer, …), international celebrities (show business, cinema) and the management of sporting events.

  4. 4.

    The profit centres of a sporting event mainly involve revenues generated by partnership contracts (sponsorship, public relations, public subsidies), media rights, ticket sales as well the sale of tie-in products and merchandising (Maltese, 2008)

  5. 5.

    Lexical forms which were present most often during the interviews.

  6. 6.

    This type of analysis refers to the selective coding techniques described by Strauss & Corbin (1998) aimed at coding certain elements of the respondent’s speech in relations to themes identified in writings on dynamic competencies and capacities.

  7. 7.

    The creation of this Public Relations Village dedicated to the tournament’s main partners has become a priority for the organizers and the decision-makers in the client companies. The differentiating, even unique characteristic of this space concerns the choice of its temporary layout, of the themes and decorations put in place from a technical standpoint which enable the creation of a convivial physical support platform for a week.

  8. 8.

    Comercialization of the Public Relations services represents over a third of the event’s revenues.

  9. 9.

    In 2008, at the end of December, The Open13 group Canal Plus events (which owns the Lyon ATP tournament) and the FFT (owner of the BNP Paribas Paris-Bercy Masters) created a tournament which brings together the best French players (Masters France) and which takes place in Toulouse from the 18th to 21st of December, enabling common partnerships (the ACCOR group, for example) to be generated.

  10. 10.

    The most highly ranked players are obliged to register for this tournament category and can only refuse to participate by invoking health reasons.

  11. 11.

    Concerts with famous DJs: David Guetta in 2007 and Martin Solveig in 2008.

  12. 12.

    The “Sunday Start” enabled the organizers to involve the main partner and mainly to communicate the repositioning of the event’s identity, combing a high level of sport and offering entertainments (Entertainment) associated with the tennis event.

  13. 13.

    In this case, one of the main commercial arguments of the event organizers is associated with the quantitative and qualitative potential of the specators present in the week of the tournament. This argument refers to the capability of the commercial managers to identify the people present who could interest a company within the context of its sponsorship operations.

  14. 14.

    Since October 11, 2008, following the decision of the Paris Council on September 29 last year, the FFT has decided to launch an international design competition for the extension of the Roland Garros stadium in the municipal Georges Hébert stadium at the Porte d’Auteuil.

  15. 15.

    Partnerships, reputation, social capital and physical resources

  16. 16.

    As a reminder, in the tournament category to which the Open13 belongs, organizers have the possibility to give out financial guarantees to attract a player. In general, the factors which attract the best players, for this type of tournament, are the amount of the participation guarantee paid and the date of the event. The latter plays a strategic role in terms a player’s sporting preparation and his or her strategic choices for the arrangement of his or her tennis season in terms of preparation tournaments before the major competitions (Masters Series and Grand Slam).

  17. 17.

    Before being appointed to the head of the BNPPM, the choice of the tournament’s pivot resource was associated with the main partnerships.

  18. 18.

    For the 2008 event, over 100,000 seats were soled with an optimal commercial use of the potential of the POPB in terms of mass audience entertainment.

  19. 19.

    From the Association of Tennis Professionals (ATP) standpoint, maintaining it requires a minimum attendance (100,000 spectators) and also a certain amount (€ 2,270,000) of prizes (“Prize Money”) awarded to the players which is expected to increase by € 700,000 next year.

  20. 20.

    Seating capacity in the stadium

  21. 21.

    Media exposure (TV, radio, internet, press)

  22. 22.

    For the next season, the date and the court surface of the Madrid tournament (Master Series category) will change to take place in April in a new stadium whose capacity is greater than that of Roland Garros.

  23. 23.

    Organizers of sporting or popular events often tend to say that their main competition was their own event the previous year.

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Authors and Affiliations

  1. Paul Cezanne University, Aix-Marseille, Marseille, France

    Lionel Maltese & Lucien Veran

  2. Euromed Management, Marseille, France

    Lionel Maltese & Lucien Veran

Authors
  1. Lionel Maltese
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  2. Lucien Veran
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Correspondence to Lionel Maltese .

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Editors and Affiliations

  1. Dept. Industrial & Systems Engineering, Texas A & M University, College Station, 77843-3131, USA

    Sergiy Butenko

  2. Dept. Economics, University of Barcelona, Av. Diagonal 690, Barcelona, 08034, Spain

    Jaime Gil-Lafuente

  3. Dept. Industrial & Systems, Engineering, University of Florida, Weil Hall 303, Gainesville, 32611-6595, Florida, USA

    Panos M. Pardalos

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Maltese, L., Veran, L. (2010). Managing and Modeling the Combination of Resources in Professional Sporting Events. In: Butenko, S., Gil-Lafuente, J., Pardalos, P. (eds) Optimal Strategies in Sports Economics and Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-13205-6_4

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  • DOI: https://doi.org/10.1007/978-3-642-13205-6_4

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