The influence of public funding on the strategies and performance of non-profit basketball clubs from South-Eastern Europe

Igor Ivašković and Tomaž Čater

Economic Research-Ekonomska Istraživanja, 2018, vol. 31, issue 1, 796-810

Abstract: The purpose of this study is to examine how private funding affects non-profit sport clubs in terms of their strategic decisions and organisational performance. Data for the study were collected from a survey of 73 basketball clubs’ managers from four South-east European countries. Explorative factor analysis and structural equation modelling were employed. The results show that stronger influence of public institutions, reflected in a higher proportion of clubs’ funding from public resources, affects clubs’ strategies so that clubs with a greater percentage of public funds: (1) emphasise risk reduction more than fast results; (2) emphasise local community aims more than top sport results; and (3) emphasise organisational growth more than cost reduction. The study empirically verified the thesis that clubs with a larger proportion of public funds are less successful in terms of sport and financial results, which is partially a consequence of their different strategic focus. The study offers a better understanding of the relationships among the structure of clubs’ funding and its direct (clubs’ strategic conduct) and indirect (clubs’ performance) consequences.

Date: 2018
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DOI: 10.1080/1331677X.2018.1456347

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