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Jack Messenger

on 15 March 2016

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Transcript of FIFA

Stakeholder - Fans
Affordable ticket prices
Good standard/ exciting football
High win to loss ratio
Live football widely available
A stakeholder must have a connection between stakeholder and organisation and must have definable interests and exist in their environment.
If a business satisfies the divergent and often conflicting interests of its stakeholders an organisation will remain profitable.
Throughout our example of using FIFA the conflicting stakeholders we are going to focus on will be players, fans and sponsors.
Needs of Fans:
How FIFA meets needs:
Goal line technology
Stadium regulations
Tackling racism
Promoting fairness
New broadcasting deal with BBC
Stakeholder - Sponsors
Issues of Stakeholder Theory
It is still lacking a widely accepted normative foundation and is still weak in terms of descriptive and empirical analysis of business-stakeholder interaction.
Harrison and Freeman (1999), have observed that 'For all of the analytical power stakeholder theory offers and its narrative refocusing on a broad set of stakeholder relationships rather than a narrow set of purely economic relationships , there is very little agreement on the scope of this theory.'
Andrief and Waddock, (2002) state that perspectives on stakeholder theory have moved away from an entirely corporate centric focus and more towards a network-based, rational and process-orientated view of stakeholder engagement.
Needs of Sponsors:
Allowed the use of FIFA emblems
• To be promoted by FIFA as strong brands who are supporting major football events
Return on their investment into FIFA
'I published a truth about FIFA. I said that President Sepp Blatter pays himself a secret bonus. They banned me. I carried on publishing. Their agents stole my phone records. They identified people they thought might be my contacts and tried to intimidate them.

Evidence for FIFA corruption means shareholders only care for themselves
Summer/Winter WC?

Implications for:
Stakeholder - Players
Competitions e.g. World Cup
Coaching infrastructure
How FIFA meet the needs:
Organise World Cup
Gain sponsors/media
Provide coaches training
Distribute funds
Set the rules
Lack of power
Only 5% of TV revenue will reach grass roots
Worldwide recognition as sponsors of FIFA
How FIFA meet the needs:
Allowing only authorised sponsors to use tournament marks
Implementing specific legislation to prevent illegal marketing
The commercial restriction area
Promoting sponsors worldwide via T.V adverts, official world cup products, and the FIFA website.
Major sponsors not renewing deals with FIFA
Concentrating more on profit to please owners and not on the needs of the sponsors
Unequal advertisement of sponsors who have the same investment
ria 5
Accessed: http://www.stakeholdermap.com/stakeholder-theory.html [Accessed 28th Febuary 2015]
Argandona A. 1998. The stakeholder theory and the common good. Journal of Business Ethics 17: 1093–1102.
BBC (2014). Financial Fair Play: All you need to know about how it works. [Online] Available from: http://www.bbc.co.uk/sport/0/football/29361839 [Accessed 26th February 2015]
BBC (2015) Premier League TV rights: What does it mean for Clubs and Fans? http://www.bbc.co.uk/sport/0/football/31386483 (Accessed 1st March 2015]
Elmhirst, S. New Statesman. 11/28/2011, Vol.140 Issue 5081, p49
FIFA (2013), 24th May-last update, Weil: We must protect stakeholders' rights. Available: http://www.fifa.com/aboutfifa/organisation/marketing/news/newsid=2084142/ [Accessed: 1st March 2015].
FIFA (2014), Sponsorship Strategy. Available: http://www.fifa.com/aboutfifa/organisation/marketing/sponsorship/strategy.html [Accessed: 28th February 2015].
FIFA (2015). Late-November/late-December proposed for 2022 FIFA World Cup. [Online] Available from: http://www.fifa.com/worldcup/qatar2022/news/y=2015/m=2/news=late-november-late-december-proposed-for-the-2022-fifa-world-cup-2529262.html [Accessed 1st March 2015]
FIFA Financial Report 2013, http://www.fifa.com/mm/document/affederation/administration/02/30/12/07/fifafr2013en_neutral.pdf [Accessed 1st March 2015]
Forbes (2014), The Billion Doller Business of the world cup. Available: http://www.forbes.com/sites/mikeozanian/2014/06/05/the-billion-dollar-bussiness-of-the-world-cup/ [Accessed: 2nd March 2015].
Friedman, M.T. , Parent, M.M. , Mason D.S. (2004) Building a Framework for issues management in sport through stakeholder theory, European Sport Management Quarterly, Vol. 4, Issue 3, pp 17-190
Gibson, O., 2015. Scandal-hit Fifa lose three more major sponsors. The Guardian, [Online] (Last Updated 10.32 GMT on 23rd January 2015). Available: http://www.theguardian.com/football/2015/jan/23/fifa-lose-three-sponsors-castrol-continental-tyres-johnson-and-johnson [Accessed: 27th February 2015].
Gioia DA. 1999. Practicability, paradigms, and problems in stakeholder theorizing. Academy of Management Review 24(2): 228–232.
Harrison JS, Freeman RE. 1999. Stakeholders, social responsibility, and performance: empirical evidence and theoretical perspectives. Academy of Management Journal 42(5): 479–485
Jennings, A. (2011). 'Investigating Corruption in Corporate Sport: The IOC and FIFA.' International Review for the Sociology of Sport. 46(4) 389-390
Pickup, O., 2013. Fifa medical chief Michel D'Hooghe believes Qatar World Cup 2022 must move to winter to protect fans. The Telegraph, [Online] (Last Updated 2:00PM BST 16 September 2013). Available: http://www.telegraph.co.uk/sport/10312706/Fifa-medical-chief-Michel-DHooghe-believes-Qatar-World-Cup-2022-must-move-to-winter-to-protect-fans.html [Accessed: 2nd March 2015].
Steurer, R. (2006) Mapping Stakeholder Theory Anew: From the 'Stakeholder Theory of the Firm' to Three Perspectives on Business-Society Relations, Business Strategy and the Environment, Vol. 15, pp 55-69
UEFA (2014), Supporters. Available: http://www.uefa.org/stakeholders/supporters/ [Accessed 2nd March, 2015].
Wilby, P. New Statesman. 6/6/2011, Vol.140 Issue 5056, p9
World Cup 2014: The 5 unknown players who've shone in Brazil, http://www.clippingpathhouse.com/blog/world-cup-2014-the-five-unknown-players-whove-shone-in-brazil/ [Accessed 2nd March 2015]
Youtube (2014). FIFA Qatar Corruption Overlooked For World Cup. [Online] Available from: [Accessed 27th February, 2015]

Majority of FIFA income from sale of broadcasting rights
Another main source of revenue from ticket sales
FIFA old fashioned views and corruption
Safety of fans at Qatar 2022 World Cup
FIFA face many challenges in balancing the needs of its stakeholders:

Size of organization
Conflicting stakeholders interests
Are FIFA improving their ability to do this?

Financial Fair Play?

Impossible to be effective when corrupt
FIFA is a private company limited by guarantee
Shares are not traded publicly on the stock market - no share capital or shareholders
Limited liability - liability is limited to the amount of the guarantee set out in the company's articles, which is typically just £1.
Owners not personally liable for companies debts
Jennings, A.(2011). 'Investigating Corruption in Corporate Sport: The IOC and FIFA'. International Review for the Sociology of Sport. 46(4) 389-390
What is stakeholder theory?
Stakeholder theory was first proposed by R. Edward Freeman in Strategic Management: A stakeholder approach.
Stakeholder Theory is an idea about how business really works. It says that for any business to be successful it has to create value for customers, suppliers, employees, communities and financiers, shareholders, banks and others people with the money. It says that you can't look at any one of their stakes or stakeholders if you like, in isolation.
Challenged the idea that organisations are responsible only to shareholders and that profit-maximisation is the only aim of a business.
Ella Mclaughlin
Jack Messenger
Jack Milligan
Sarah Palmer
Ria Melvin
Full transcript