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  • Essay / Sugar Daddies in European Football Clubs - 1384

    2. Literature review and in-depth critical examination of the question 1095/1315 words – old collegeThe “Sugar Daddy Game” has received increased academic attention in recent years; researchers have observed and compared many aspects and implications of this phenomenon. To start with Dietl et al. (2009) and their analysis of social welfare and the difference between leagues that maximize profits and those that maximize gains; then Lang et al. (2011) analyzed the influence of benefactors on the competitiveness of the industry; then Madden (2012) studied the implications for the economic stability of the industry; then Franck and Lang (2012) observed a growing trend towards riskier strategic investments among clubs owned by “sugar-daddy”; and finally, the possible outcomes of UEFA's new “financial fair play” regime (aimed at reducing clubs' dependence on their wealthy owners) have been studied by Vöpel (2011), Müller et al. (2012) and Peeters & Szymanski (2012). As we have already noted, the growing influence of sugar daddies within the football industry is leading to an even greater focus on the goal of maximizing wins at the expense of financial stability (Madden, 2012). . Franck & Lang (2012) analyzed the financial situation of 733 European top division clubs in 2009 and recognized that up to 56% of these football clubs reported net losses, totaling €1.2 billion. euros, even though incomes of all kinds have increased. significantly (Müller et al., 2012). Additionally, 37% of these clubs struggle to have debts greater than their assets, while almost 10% of them spend more than they can earn to pay players' salaries. For these clubs, it is vital to receive cash injections from benefactor owners at the end of each season. (Lang et al., 2011) These figures highlight the middle of the paper......Linking competitive strategies to human resource management practices. The Academy of Management Executives, 207-219. Schuler, R. and MacMillan, I. (1984). Gain a competitive advantage through human resource management practices. Human Resource Management, 241-255. Sloman, J. and Hinde, K. (2007). Economics for Business, 4th Edition. Harlow: Financial Times Prentice Hall. Szymanski, S. (2003). The economic design of sports competitions. Journal of Economic Literature, 1137-1187.UEFA. (2012). UEFA regulations on club licensing and financial fair play. Nyon: UEFA. Vöpel, H. (2011). Do we really need financial fair play in European club football? An economic analysis. CESifo DICE Report, 54-59. Wright, P., McMahan, G., & McWilliams, A. (1993). Human resources and sustainable competitive advantage: a resource-based perspective. Center for Effective Organizations, 1-34.