Financial Crises in Clubs: An Endless Series

Written by Dr. Hamada Al-Antably

From time to time, sports clubs complain of financial crises that strike them, affecting their continuity and ability to fulfill their obligations. The latest of these crises is the current Coronavirus crisis. The question that raises itself here is: Are the financial crises and the inability to meet financial obligations toward employees and coaching staff—which some clubs are complaining about—the direct result of the Corona crisis? Athletic activities have not been suspended for more than 15 days, so are these the shadows of the crisis, or is it merely an excuse used by club boards of directors? Because all losses resulting from the suspension of activity will manifest later on, whether for sponsoring companies or for clubs and sports federations.

Consequently, what is the cause of this crisis? Is it manufactured by some boards of directors to cover up other matters, using “management by crises”—a managerial method in which some excel? Are clubs managed through donation boxes? Is relying on donations truly the solution in the era of professionalism and the sports industry?

I believe that all club boards of directors need to pause and reflect, first to search for the objective of the club and then to make that objective the guiding force for the club’s work. It is imperative that a club examines the number of sports activities practiced for the sake of championships. Undoubtedly, club members have the right to practice sports that suit their capabilities and goals, but this should be on a recreational basis—meaning the club provides the facilities and schedules to practice these activities. However, competitive participation at the level of championship sports must be subject to the factors of profit and loss. Everyone has the right to practice sports, but the club management has the right to set controls governing spending on various sports, who represents the club, and the conditions for doing so.

It is also imperative that club managements exploit these suspensions in activities to restructure the club’s executive body and its management systems in terms of quantity and quality. To rationalize spending, you must have a qualified, trained, and multi-tasking administrative structure where the right person is in the right place, which rationalizes expenditures and ensures the smooth flow of administrative work in the club.

There must also be a pause to examine the salaries of some players and coaching staffs, which often reach exaggerated limits without clear reasons. Is the salary criterion competence or connections? This is not an unprecedented concept; all over the world, there are conditions, pricing mechanisms, and a stock market that determine the prices of players and coaching staffs based on clear indicators and reasons.

It is necessary for the club to work on reformulating its administrative systems and conducting a comprehensive and fair evaluation of all administrative cadres present across all joints of the club, working to formulate regulations and working rules that guarantee excellence when sports activity resumes.

This period must be a decisive turning point for the future of clubs, and indeed the professional sports movement in general, if we wish to transition from amateur managements running the sports system from the standpoint of crisis management to professional managements that comprehend the meaning of sports administrative work and seek to provide multiple and diverse sources of income, strive to develop their resources through innovative methods, and seek to establish sustainable financial management.

This is my personal vision that I wanted to express in light of the current financial crisis in clubs and in light of the suspension of sports activity in general at all levels of practice and competition.

By Dr. Hamada Al-Antably