Edited by John Goddard and Peter Sloane
Chapter 11: Management ability, strategy, tactics and team performance
A sports club should be considered as having two main objectives: success on the field of play and financial stability. To increase the chance of winning and thereby attract additional money from ticket sales, advertisements, and sponsorship, clubs make investment in players, coaching teams and management. With these resources the clubs aim to win to achieve both sporting success and financial stability. Although players and clubs consider victory on the pitch as their ultimate achievement, financial stability is also a main driver for long-term success (Scully, 1995). Club shareholders and creditors also watch closely their returns on investment, cash flow movements and interest payments. Therefore, club performance on the pitch and financial performance both need efficient managerial ability, justifying the present research. El-Hodiri and Quirk (1971) consider that sports managers are profit maximizers. Sloane (1971), on the other hand, assumes that sports managers maximize utility in the pursuit of non-profit goals, being organized to consume their resources in such a way as to obtain satisfaction rather than profit. Vrooman (2000) assumes an intermediate position, in which sport managers jointly maximize both profit and utility (performance). Therefore, this chapter investigates the role of management ability in improving Portuguese football performance using the Alvarez et al. (2004) stochastic frontier models, allowing for distinct managerial practices, strategies and tactics in Portuguese football clubs between 2000 and 2012.
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