The outlook suggests a modest economic recovery for the period from to IMF, As Slovenia's economy is highly dependent on foreign trade, mainly with other EU countries Statistical Office of Republic of Slovenia [SORS], , it has been also deeply affected by the global crisis. Slovenia joined the EU in and has been portrayed as a success story among the so-called transition countries.
In August , the three main ratings agencies all downgraded Slovenian sovereign debt as investors' voiced concerns that Slovenia would require a bailout. Moreover, it is extremely important to emphasize that Slovenia is within the Eurozone, which is considered to be a large downside risk from the global perspective IMF, In particular, risks of prolonged stagnation in the Eurozone as a whole will rise if the momentum for reform is not maintained. If Slovenia rebalances its economy and restores competitiveness, its macro-economic performance should improve in coming years, but the improvement will most likely be smaller than the deterioration in the past period; real growth is expected in several years.
Optimal Strategies in Sports Economics and Management - Google книги
Although the crisis was triggered by the bursting of the housing bubble in the United States, forcing banks to write down several hundred billion dollars in bad loans caused by mortgage delinquencies, it has spread to all regions of the world with dire consequences for many industries. Sport organizations have different organizational forms, operating methods, goals, and institutional characteristics than those in other sectors of the economy, so there is good reason to expect them to react differently to economic and financial downturns Humphreys, Therefore, the global financial crisis presents significant challenges for the growth of the sport industry, representing a serious setback, because it is taking place at a time the sport business had begun to progress in economic performance.
However, there are many reviewed analyses through case studies. Most empirical studies were done on professional sport, but not all of them have agreed that global financial crisis has caused an economic recession in this part of the sport industry. In the following, a short overview of the impact of the global crisis on sport in North America and Europe is provided to portray a more comprehensive financial picture.
Humphreys has explored the effect of the recession and financial crisis that began in the middle of on five major professional sport leagues in North America.
The evidence from this study suggested that attendance, a key source of revenues in professional sport leagues in North America, had responded to changes in the business cycle, implying that revenues from ticket sales and other game day revenue streams, like concessions and parking, may decline. The evidence indicated that the sales of premium seats and luxury suites might decline more significantly because the enterprises that buy these relatively expensive products have experienced sharp declines in revenues.
According to the same author, television audiences, another key source of revenues for professional sport leagues, have not declined during the downturn as most of the revenues earned from broadcast rights come from long-term contracts that would not expire until or beyond. Moreover, the IEG survey has shown that North American companies were expected to increase their spending on sponsorship, including sport, by just 2.
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Generally, corporations were looking for ways to communicate their message to consumers while reducing their spending. Dramatic changes in the financial climate resulted in professional sport in North America experiencing mergers, team bankruptcies, athlete payroll purges, administrative staff reductions, and in some situations, even leagues going on lockout Dillon, ; Humphreys, ; Sauter, Budget crunches have forced early retirement packages, lay-offs and hiring freezes. The situation is somewhat different in Europe. However, unlike professional sport in North America, European club football has not had declines in revenues thus far.
The 'big five' European football leagues 5 have shown admirable resilience to the economic climate in terms of revenue generation; nevertheless, the imbalance between revenue and costs has generally worsened Deloitte, One notable exception is the German League Bundesliga, However, Preuss, Schubert and Haugen have indicated that this concept may lead to unintended or even adverse effects.
The prospects of European club football will be seen in coming years.
However, study by Peterman and Suntornpithug shows that professional football itself could be resistant to crisis, since crisis doesn't affect match attendance of professional football in United Kingdom and United States. The impact of economic crisis has been observed in some other areas of European sport. Unlike professional football clubs, other sport organizations generally have fewer opportunities for revenues from match-days, broadcasting, merchandising, trade of players and sponsorship; therefore, they are more dependent on other revenues.
A small number of empirical studies indicate the negative impact of the global economic crisis on the non-professional sport sector in Europe. As sponsorship revenues are one of the most significant sources in Turkish sport, they had to take many saving measures to emerge from the crisis, and many sport federations had to reduce their activities or cancel some international tournaments, camp programs, and annual youth programs.
The next issue to be discussed in this study is an overview of the sport services market in Slovenia, particularly concerning the revenues of sport organizations, since this is an important aspect of the global crises' impact on finances of sport NGOs. Slovenian sport represents 1.
Optimal Strategies in Sports Economics and Management (Paperback)
This is connected with the fact that Slovenes are extremely active in sport, and they are good sport consumers. They are among the nations in the EU that are the most active in sport, closely following the Nordic countries Eurobarometer, , with. Two-thirds of these funds are spent on sport products and one-third on sport services.
High sport consumption, well-established physical education in schools Hardman, and the entire organizational infrastructure of sport NGOs Jurak et al. The level of public expenditure at both the national and local levels is lower than in most EU countries Bednarik et al. Another valuable source of Slovenian sport should also be mentioned: volunteers. These volunteers perform It is also estimated that volunteer work represents However, the amount of volunteer work lags behind that witnessed in other developed European countries Waelbroeck-Rocha et al.
According to all the aforementioned, this study aims to investigate the likely impact of the global financial crisis on the finances of sport NGOs in Slovenia and to assess the extent to which that influence is reflected in certain groups of sport NGOs it is assumed to exist. The Slovenian sport services market has been monitored for more than fifteen years with the approach taken by Andreff and his colleagues ; therefore, high quality population data was used for this study.
The survey examined operating revenues among all of 5, sport NGOs in Slovenia sport clubs and associations that provided annual income statements for each year from to The data in this study has been obtained at the request of the authors, using annual financial reports from the Agency for Public Legal Records and Services in the Republic of Slovenia, the main primary source of official public and other information on business entities in Slovenia.
The operating revenues have been defined as a stream of benefits accruing to the sport NGOs from following types of revenues:.
Sales revenues such as revenue from sport lessons, tickets sales, sponsorship contracts, media rights, merchandising, food and drink sales in the clubhouse, trade of players, the rental of premises, the organization of sport and non-sport events within the club's premises, tournament fees, own lotteries, etc. Public funds include subsidies and grants from local authorities and government and revenues from licensed lotteries, gambling and betting operators channeled to the sport sector via a specialized institution in Slovenia: the Foundation for Sport ;. Donations revenues from individuals and companies without expectation of commercial return, as well as financial flows between sport associations and sport clubs ;.
Membership fees an amount of money, i. Other operating revenues revaluation operating revenues that arise from the sale of items of property, equipment and of intangible assets as an excess of their sales value over their carrying amount and other operating revenues not reported elsewhere. To obtain a more comprehensive insight, operating revenues were analyzed according to different types of sport NGOs.
For this purpose, sport NGOs were divided into three groups of financial design types, according to a cluster analysis using Ward's hierarchical fusion algorithm clustering technique on 10 primary financial variables from the financial statements of sport NGOs: grassroots sport organizations, semi-professional and professional sport NGOs Bednarik et al.
Basic descriptive characteristics were calculated for all variables regarding the revenues of all attained design types of sports NGOs, while Wilcoxon signed-rank test is used to examine a set of differences among all attained design types between and Stagnation has been observed among revenues of grassroots sport organizations and semi-professional sport NGOs, while an increase has been observed in group of professional sport NGOs. The operating revenues differ between groups of sport NGOs in level see Table 1 as well as in their structure see Figure 3.
Since operating revenues of sport NGOs are not normally distributed, the medians and interquartile ranges IQR of revenues of three different financial design types of sport NGOs, presented in Table 1 , enable a more comprehensive insight of trends. Generally, in semi-professional and professional sport NGOs the majority of operating revenues are significantly higher in than in The upward trend of operating revenues in the observed period was noted as being the greatest in group of professional sport NGOs.
A positive trend can be also observed in semi-professional sport NGOs, which managed to maintain this trend with higher levels of all operating revenues. In contrast, in grassroots sport only public revenues are significantly higher in this period; consequently, their total operating revenues have decreased in last two years. This is the first study to analyze the impact of the global economic crises on an entire population of one group of sport organizations: on sport NGOs, in our case. What our study adds to previous knowledge about the impact of the global economic crises on sport is that until the impact of crises in some countries like it is Slovenia was relatively small and diverse regarding the different financial design types of sport NGOs.
Our other finding leads to the assumption that Slovenia, as a small European sport economy, will encounter further serious consequences of global economic crises, and that the impacts of the crisis will be different for certain types of sport NGOs. However, many of the accomplishments that were previously mentioned have been achieved with these limited finances. This leads to an assumption of the relative superior efficiency of the Slovenian model of sport. The different types of sport NGOs play an influential role in this model.
Therefore, an analysis of the operating revenues of Slovenian sport NGOs was performed on three groups of sport NGOs, which have previously been clustered regarding to their financial characteristics Bednarik et al. By number, the biggest group of Slovenian sport NGOs is grassroots sport organizations. Despite being in the very large majority Findings from Jurak, Bole Breznik and Bednarik b suggest that these are sport organizations that mainly carry out activities in order to satisfy the needs of their members.
They are based exclusively on a voluntary basis they do not have employed staff; however some work, especially coaching, is done by educated or qualified personnel under contract and, therefore, consequently have fewer expenses and generate below-average revenues. However, regarding sport production at a national level, this is a particularly influential group since it represents the core of grassroots sport with a major impact on a public health many people are involved in their programs since they represent, numerically, the biggest group of sport NGOs; see Figure 2 and strong value-added effects much of the work in their programs are done by members themselves; Jurak et al.
The second largest group Previous findings Bednarik et al. Sport organizations from this group have a unique position in the sport market, since they are extremely externally oriented in order to attract as many members as they can, mainly sportingly active users this is visible in membership fees level of this group; see Table 1. Therefore, they have high levels of human resources, mainly contractors and volunteers, as well as a few professionals Jurak et al.
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The third smallest group 1. This group is the one most covered in the media, i. This group also partly corresponds with previously found groups of sport NGOs in Slovenia Jurak et al. This type of sport organization is characterized by an above-average number of professional sport training and management personnel, and a large number of volunteers whose are predominately involved in organizing sport events. These sport organizations are mainly aimed at satisfying the needs for sport spectacles for passive sport consumers. They seem to have business strategies, market positions and infrastructure organization, sport facilities for developing their competitive advantages.
However, substantial financial resources are needed in order to cover their expenses Bednarik et al. Among all sport NGOs, they are the most oriented toward sales revenues; therefore, they should operate more like enterprises.