Management of Professional Sports Business 　―From a CFO’s Perspective―

There are many kinds of stakeholders involved in professional sports clubs. For example, in cases of “J League” (soccer in Japan) and “B League” (basketball in Japan), League organizations, the stakeholders include clubs’ shareholders, fans (supporters and boosters), sponsor companies, residents and municipal offices in the hometowns, players, club stuff, banks, etc..

From the financing angle of each stakeholder for the clubs, the sponsor companies who provide funds to the clubs are very important as the stakeholders from a financing standpoint, although the funds are listed in the sales in terms of accounting.

In particular, major sponsor companies who have supported the clubs for a long period of time could be treated as more important financial providers than the banks which lend the club money. The sponsor companies give “new money” to the clubs every year which they don’t need to pay back. The amount of money which can be provided by the sponsor companies will increase as the clubs become stronger and their values appreciate.

Therefore, Something like an “IR” initiative should be taken to the sponsor companies by the clubs. The ”IR” should be customized to each sponsor company that provides funds based upon their mission, as it’s done by the listed companies.

For reference, the fans of the clubs, who support the clubs through ticket purchases and enthusiastic fandom and sometime give the clubs a blistering reproof, can be compared to the individual shareholders who have strong loyalty to their listed companies.