Proceedings of the 8th International Conference on Research in Management and Economics
Year: 2023
DOI:
[PDF]
Franchising: is the North American model about to be duplicated in European soccer?
Gilles Paché
ABSTRACT:
In 2021, the attempt by a handful of powerful soccer clubs to create a European Super League gave rise to fierce debate about importing the North American franchising model into professional sports. The governance of professional soccer in Europe, in the hands of UEFA, is effectively based on the principle of recognition of sporting merit: the best teams win the trophies, the worst teams are demoted to a minor league. In contrast, the governance of the four major leagues in North America is based on keeping franchised teams in a league regardless of their sporting results. To maintain fan interest, mechanisms have been put in place to ensure that a team ranked poorly in season S has a chance to shine in season S+1, thanks to the addition of some excellent players. The franchising model greatly reduces uncertainty, and consequently attracts many investors; this is why the owners of powerful soccer teams in Europe have been tempted to implement it. The paper addresses this issue, pointing out the obstacles to implementing this model in Europe, notably for cultural reasons.
keywords: Europe, franchising, governance, leagues, professional sports, soccer