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Socio-economical Factors of Sports Clubs Profitability

Student: Luppov Ivan

Supervisor: Konstantin Lvovich Polyakov

Faculty: Faculty of Economic Sciences

Educational Programme: Economics (Bachelor)

Final Grade: 9

Year of Graduation: 2017

Abstract Sport clubs compete for titles and awards, buying players, changing coaches, spending huge amounts on training bases, camps and phisycal practices. However, as the data shows, the income of the clubs do not depends directly on the victories and rewards. For example,"New York Knicks" - the leading team in the National Basketball Association, talking about financial indicators, only twice became the champion in the early 70s. In recent years, the club does not fall into the zone of the playoffs, beating various anti-records. The current champions and the teams with the top lines of rank, in contrast, have average indicators . Why does it happening? This work raises the question of which other factors apart from sport achievements affect the economic performance of sport organizations? Do not distort these phenomena the incentives of the owners of clubs, damaging the sporting and competitive part of the tournament? The regression model built by us, will allow to determine the contribution of different socio-economic factors in the amount of the revenues of the clubs in the NBA over the past 10 years and to make conclusions about the expediency of investing in sporting success.

Full text (added May 10, 2017)

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