A Bivariate Probit Examination of Financial and Volunteer Problems of Non-Profit Sport Clubs

Dennis Coates, Pamela Wicker (), Svenja Feiler () and Christoph Breuer
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Pamela Wicker: German Sport University Cologne
Svenja Feiler: German Sport University Cologne

International Journal of Sport Finance, 2014, vol. 9, issue 3, 230-248

Abstract: Previous research has examined the financial and volunteer problems of non-profit sport clubs in an isolated manner and has neglected the influence that sponsorship and subsidy funding, which we term as external funding, may have on both problems. The purpose of this study is to examine the effect of this external funding on financial and volunteer problems, and the relationship between both types of problems. Using data from a survey of sport clubs in Germany, a bivariate probit model is estimated. The results provide evidence that both problems are interrelated. Clubs relying on sponsorship income experience larger financial and volunteer problems, while subsidies only increase volunteer problems. Moreover, club philosophy variables significantly impact both types of problems while governance structure does not. Internal revenues and miscellaneous external revenues have no significant impact on either type of problem. The findings have implications for club management.

Keywords: financial resources; volunteers; external funding; non-profit organization; bivariate probit model (search for similar items in EconPapers)
JEL-codes: L83 (search for similar items in EconPapers)
Date: 2014
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International Journal of Sport Finance is currently edited by Arne Feddersen, Babatunde Buraimo, Joachim Prinz and Jane Ruseski

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