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In the not-too distant past, football was deemed a working man's game. Clubs were mostly humble entities that earned the majority of their income through matchday gate receipts. Now the sport is a big business with sponsorship, broadcasting contracts and extensive commercial activities the norm. Leading clubs are able to generate substantial revenues from the lucrative deals they negotiate.
The football club brand
Strong growth evident in recent years has prompted an increasing emphasis on brand equity. Boardrooms are cognizant of its importance in enticing interest from supporters, media and sponsors alike. It is therefore imperative that clubs identify factors with the greatest potential to influence how the brand is perceived.
Evidence suggests that both on- and off-field events can have considerable bearing on brand equity. How the team performs is an obvious starting point. The status of the club along with its tradition and culture are also highly significant.
Another critical issue is the management of star players. Recruiting a big name is guaranteed to bring a feel-good factor to the club. On the other hand, it often proves to be the proverbial own goal when a leading player is transferred to another team. Damage to the brand's equity is virtually inevitable in such circumstances.
Fans are a key target group who buy replica shirts and other products to express their identity and experience a sense of belonging. Hence, commercial activities provide a critical means for a club to closely engage with its supporters.
It is clearly in the best interests of any football club to ensure that merchandise is readily available for enthusiasts to access. Quality is a must as is an assortment varied enough to meet the need of different supporter groups. However, this is rarely a straightforward task. Demand is prone to fluctuate wildly. It is thus a formidable challenge to maintain stock at levels...