Professional Documents
Culture Documents
INDUSTRY AND
CORPORATE SOCIAL RESPONSIBILITY
Paper
Authors:
Jens Blumrodt
Elizabeth WOLFE
ESC Rennes School of Business
Management and Organization
2, rue Robert d’Arbrissel
35065 Rennes
France
Phone: ++33-(0)2 99 546363
Fax: ++33-(0)2 99 33 08 24
Email: jens.blumrodt@esc-rennes.fr
Web: www.esc-rennes.fr
1
THE SPORT ENTERTAINMENT INDUSTRY AND
CORPORATE SOCIAL RESPONSIBILITY
Jens BLUMRODT
Elizabeth WOLFE
Management and Organization
ESC Rennes School of Business
(France)
1. Sport Entertainment
The sport entertainment industry is synonymous with big business. The clubs
play with mercenaries who are worth millions. According to the Deloitte report,
a club like Chelsea spends 168 million Euros in salary for its personnel;
including 160 employees, which is considered a small business. It represents a
negative financial report, and its accounts, combined with those of Manchester
United, show debts of more than 1.9 billion Euros. No traditional business could
survive this kind of management. The upcoming financial crisis can only
reinforce the negative effects of clubs based on the stock exchange Roger &
Gerard, 2008). Millionaires like Roman Abramovitch are responsible for paying
the remaining debt. Michel Platini, President of the UEFA, sounded the alarm
bell when faced with these facts: "The goal is no longer to win titles, but to gain
money back to reimburse the debts." Concerning the League of Champions, it is
even more apparent: "Today it’s those who cheat who win" (L’équipe, 2008). In
most industrial sectors, the influences of economic and social business
responsibility have seen a considerable impact on the corporate image. Sport, in
particular soccer, has not been spared from type of fraud (Jessel and
Mendelewitsch, 2007). It seems that the judicial punishment remains lenient and
the spectators forgive the sport entertainment industry of their actions. They
seem to make the difference between the inherent sport values and those which
have been put in place by the sport entertainment industry (Bourg and Gouguet,
2007). It is evident that professional clubs do not actually correspond to the
postulate of corporate social responsibility (CSR) (cf. Carroll). The critics of the
sport industry aim at the actors as well as at the various and multiple sponsors.
Their primary concern is the marketing strategies, however they are equally
concerned with the objectives of the business of sport entertainment (cf. Katz-
Bénichou, 2004 or Tribou and Augé, 2006).
The object of this communication consists of knowing if CSR has entered into
the clubs development strategy. At the same time, we also ask if a factor or
element in the spectators’ imagination exists that refers to CSR? Does CSR
contribute to the image of an athletic club or professional team? What role does
CSR play in the strategic management of the club? The objective of this research
consists of understanding CSR as complete factor in this particular industry. In
order to reply to the main research questions, we will take a brief look at the
theories of strategic brand management and CSR (section 2). The methodology
part of this study exposes how and why the perceptions of the public are
2
measured based on two case studies in a French environment (section 3). The
results obtained (sections 4) will be discussed next (section 5), and which will
allow a sketch perspective and recommendations in terms of strategy in the sport
entertainment industry (section 6).
3
proposed by Capron and Quairel-Lanoizelée based on sociological
considerations of CSR (sociological conceptual framework of CSR) is surely a
more adapted framework when taking into account the dominating values of the
specific societal context which exercises itself in the activities of the business.
These values underline the importance of the symbolic and cognitive dimensions
and integrate the contentious expectations of the different stakeholders. Upper
management implements strategies of image and of effective symbols in
accordance with these values in order to assure the company’s legitimacy
(Capron and Quairel-Lanoizelée, op.cit, 42-43). The legitimacy of business
appears, according to this neo-institutional vision, thanks to the institutionalized
environment emitting social and cultural requirements that constrain the
businesses to play a predetermined role and to respect certain appearances. The
sport spectacle is only appearance and imagination; and the homogenous picture
must be based on positive recognized values. Corporate tries to let its brand
image correspond to its desired image (Meffert and Burmann, 1996 and 2002).
A club will put marketing communication strategies in place to give it specific
content. In no other field does the theme of the identity, image and reputation
play a role as revealing as in the sport arena (Parent and Foremann, 2007). If we
look at our research objective, the theoretical framework of corporate
responsibility seems only partially applicable since this framework should bear
driving from the clubs that, even if this is not forbidden by the law are prohibited
by the good rules of functioning of a business as is with the example of the
club’s debt. The sport industry seems to obey other rules. The present research
observes the phenomenon of CSR together with factors that contribute to the
image of a professional sports club. If CSR corresponds to a business project, our
research can evaluate the engagements of the club and measure if this project
touches the consumer’s receptiveness. From this moment, we can measure and
note if CSR is an element when entering into the considerations of the business
of the athletic spectacle. Is it present in the perception of the spectators? It is a
true measure of the management and it should be integrated in the global strategy
of the business of the sport industry, as this is the case in other industrial sectors
(cf. John and Al., 2006)?
The responsibility of the business or more specifically CSR could be one of these
factors which are present in the consumer’s imagination. In order to carry
through with this indication, the present research is based on the studies and the
developed methodologies by Ross; Ross, James and Vargas; Gladden and Funk
(Ross, 2006; Ross, James and Vargas, 2006; Beccarini and Ferrand, 2006;
Gladden and Funk, 2002). They recognized the need to furnish the framework
aiming at the measurement of sport spectator’s perceptions. The number of
factors which come into consideration vary according to the subject and to the
specific environments of the research; eleven (Ross, Hyejin, and
Seungum, 2007), fourteen (Ross, op.cit.) or sixteen (Gladden and Funk, op.cit.).
While measuring these perceptions with the stakeholders, we will obtain the
external brand image of the club. However, it lacks the desired image of the
direction of the club. These perceptions have been evaluated thanks to open or
semi-guided interviews, inspired by the methodology applied by Couvelaere and
Richelieu (Couvelaere and Richelieu, 2005). Our double methodological
approach, on the one hand with the management and on the other with the
spectators, is expected to provide an answer to the question that if the club took
4
engagements facing certain aspects of CSR, and if these engagements are
perceived as such by the spectators.
3. Applied methodology
The sport spectators brand associations have been measured thanks to questions
formulated in a survey. The comparison of images between two brands, based on
the perceptions of the customers, necessitates two frameworks of identical
measure. The evaluation of spectators brand association present at the time of a
game imposes for the quantitative research a precise questionnaire containing
limited questions. The time constraint for the face to face interview between the
interviewer and the interviewee at the time of a game is an important schedule
for the questionnaire administration. They have been administrated before the
game and during the half-time. The number of items has been limited (cf.
table 1) following a process used by Bauer, Stokburger-Sauer and Exler (2008).
5
Validation of Principal component analysis 1. SRFC season 08/09 (496 Researchers
framework and (PCA) and Cronbach’s alpha α, questionnaires administrated); and 54 MA
concept reject items with a lack of students for
defined for viability. 2. F.C.L. season 2007/2008 the different
sport (500 questionnaires groups.
spectators administrated).
brand 2.: Research
associations’ ers and 56
measurement. briefed MA
students
Steps inherent to the PCA
Testing PCA with rotation varimax applied to the three different
hypothesis samplings.
6
communication analysis. The quantitative research called upon 384 spectators of
the Stade Rennais F.C. both before and at the half time of the game between the
SRFC and F.C. Lens, on April 4th 2007 and SRFC against Toulouse F.C., on
April 21st 2007 (cf. table 1 : step). On one hand, the first series of research has
permitted us to surround the image of SRFC in the perception of the spectators
who are present at the game and to verify if our initial model could be tested by
the methodology applied. On the other hand, this approach proves itself equally
helpful in the measure or the temporary provisional model found a reliable
questionnaire. This one constitutes a key point as the research highlights 500
questionnaires which have been administered for the Lorient soccer club during
the game F.C.L. against A.J. Auxerre on March 15th 2008. A study was
conducted with the SRFC on November 16th 2008, during the game which saw
the Stade Rennais F.C. at AS Monaco (496 questionnaires were administered).
The questionnaires were administered in the stadium at different access points to
the tribunes. They were completed one-on-one between the spectator and the
interviewer, and they were all exploitable. The tribunes of fans as well as the
V.I.P spectators have been excluded from the sampling. They represent a
particular public who has had the benefit of knowing different services. Fans,
who are enrolled in the fan club, benefit from a special rate while V.I.P members
benefit from elaborate catering which is also included in the higher price.
Our research objective is to decipher the CSR-ethical perceptions factor (FA7):
Regional engagement and social responsibility. Questions were asked around the
specific responsibility of a sports club (cf. table 2).
7 CSR-ethical perceptions and the items Questions asked for items measurement
7/1 Engagement for the Region (Breton) It is important for you that the club:
Is involved and engaged to the Region?
7/2 Clubs importance for the environment The club is important for the city and the region?
(City, Region)
7/3 Region’s reputation The club contributes to the city’s reputation of the
city and the region?
7/4 Responsibility and social engagement The club takes care of the environment and there
is a real engagement to the society ?
7/5 Engagement with honest sponsors It is important for you that the club works with
honest sponsors?
7/6 Respect of the environment The club takes care of its environment and
develops real project of sustainable development?
7/7 Transparency The club is honest and clean?
A good cohabitation between the owner of the facility and the tenant is necessary
(almost all the clubs in France remain tenants of their surroundings).
Professional sport clubs are not common businesses. They have long histories -
often more than a hundred years- who are known to weave very strong lines
between the city and “their club”and depend on the sport politics put in place.
The cities know an attraction more or less prominent for the elite and
professional sports. They can quite simply profit from the media notoriety of the
club for their own image. Or the club furnishes the image of a profiteer
exploiting as good as the infrastructure which has been put at the disposition by
the city than the other advantages agreed to by the municipality, the department
7
or the region. The local, departmental or regional engagement of a club
constitutes a variable measure in the new factor of CSR.
Other variables in the spectator’s perception could be linked with CSR. There are
three other factors which we feel equally determined to evaluate the engagement
of the business responsibility at different levels.
Management Style: Is the club managed well?
(This item is integrated in the 2nd factor, item number 3 cf. table 1: Dimension:
n°1: Core service [FA 1, 2, 4] these items have also been measured in the
references Gladden et al., op.cit; Ross, op.cit.; Ross, et al., op. cit.)
The public is well informed; the people who are attracted by the spectacle also
follow the competition, the club and soccer in general, in the media and the
stadium is filled with specialists. The spectators know everything and consider
themselves as true experts (Mullin, op.cit.).
Everything that we do in the club is examined
from outside, our cashier is recognized more so
than the top manager of a big business. Our
accounts are the subject of discussion as is the
latest news on the purchases and transfers of
players.
(These testimonials are extracts of discussions
conducted with the clubs directors. We
interviewed the management marketing and
commercial, as well as the general administrator.
This first testimony is from one of the directors
of a club in League 1.)
The management factor has been scrutinized, thanks to variables which have
been voluntarily left open. One of these variables includes the transfer, purchase
and sale of players, which manage the club and its accounts in general.
According to Carroll’s model the whole business is run by this factor.
2 Security: Can a club guarantee the security of the spectators?
(This item is integrated in the 3rd factor, item number 3 cf. table 1: Dimension:
n°2: Other attributes (FA 3, 5, 8, 9)
The security of the stadium and its surroundings during a game has become more
than a simple discussion. As for other products, it is a true duty to the respect the
norms of security in and around the stadium. The infractions of hooligans are
intended to be ruled by these regulations and all clubs are under these
expectations.
Since 1995, we are responsible for what
happens inside the stadium. There are security
agents that can intervene. They are all under
contract with the club, and are now employees;
there are no longer any volunteers. Therefore,
we all must implement the guarantee of public
security. The police forces are to intervene only
if I give them the authority. For certain games, I
request stronger police forces. In this case, we
pay about 5000 Euros for a company of CRS
(…) a dozen firemen, 2000 Euros (…) Therefore
8
we pay it all. In average it is about 35,000 for
the organization of one game.
(Director of a club in League 1).
Security is crucial; it becomes particularly important for events that are looking
to attract young people, elderly people and even entire families. It belongs to the
legal framework of the sport spectacle. The spectator is, for example, physically
touched so that concealed metallic objects can eventually be detected.
3 Young players’ education: Does the club train its players or does it buy the
players from other clubs?
(This item is integrated in the 1st factor, item number 1 and 2 cf. table 1:
Dimension: n°1: Core service (FA 1, 2, 4). It is a requirement for French clubs to
give access to a training center and school education. Having a training center
allows clubs to help mould future stars; however more importantly, it gives
young athletes the possibility of planning for their professional careers.
Not everybody can become a soccer star, many
are called up but few are actually selected …
Our responsibility as the club is to help
individuals adapt themselves in life (..) and
guarantee to follow them after their studies and
after their time spent in the stadium is over. We
consider this as our obligation.
(Director of a club in League 1).
The will of the club to form a star on the field without ruining other professional
opportunities of the apprentice is a rule that surpasses the requirements
formulated by the legislator. It constitutes an ethical act which is supported by
the club and is a true engagement of the corporate expected or desired by the
stakeholders.
Two hypotheses have been formulated:
1st Hypothesis: The clubs’ brand image corresponds to the desired image.
The clubs are in a position to develop their image and brand close to different
publics, so that their desired image can be identical to perception at the exterior.
We are measuring the evaluation for certain predefined variables, like those
which are reflected in CSR.
2nd Hypothesis: CSR is a coherent factor figuring in the perception of the
spectators.
The fifth step contains different approaches and results. The first one being the
descriptive statistics (cf. descriptive analysis) and the second one was an analysis
of the principal components (PCA). Therefore the different variables have been
tested on their reliability with the Alpha Cronbach’s (cf. analyse and weakness).
The variables retained have been utilized for the analysis of the PCA (cf. PCA
with rotation). The factors explain the presence of the responsibility of business
as well as CSR in the spectator’s perception. The factors explaining the presence
of business responsibility as well as the presence of CSR in the spectator’s brand
associations are likely to figure in the PCA factors. They are also supposed to
build consistent variables.
4. Results
The analysis has been made with SPSS 17. We have compared our results with
those available for the club. The SRFC spectator profile corresponds to those
9
known by the club (age; social situation; origin, occasional spectator, regular or
season ticket holders; frequency of visits to the stadium). These ones are based
on the following of the clientele thanks to CRM software, which was put in place
in 2005, and some benchmark offered by the institute Tns Sofres (specialized in
the domains of research marketing and polls), as well as the information obtained
thanks to the basis of data of purchase of tickets online (e-ticket service). The
Lorient club did dispose any of this data and the study has been the first for the
club.
73% of the spectators of the SRFC are between the ages of 30 and 59, while at
Lorient there is an aging public (62% of the spectators are older than 40 years
and 18% were older than 60). The two clubs show an elevated percentage in
liberal professions or employees. The spectators of the SRFC and of F.C.L.
prove to be diversified and show that today soccer touches a larger population
(Bodin and Héas, 2002).
Brands’ awareness has been measured by means of logos. Almost 100% of the
public comes from the department, and 95.9% of the rest of the public,
recognized the logo of the club of Rennes (F.C.L.: 97% and 86%). The logo is
well recognized at the departmental level, but also well identified by the national
public.
The Alpha Cronbach’s (α) test has been made for all the items (0,826 F.C.L. and
0,836 SRFC) and also for the different factors (cf. table 3-4).
After the Scree-test, 8 factors explain 66.911% of the total variance (F.C.L.: 6
factors 87.96%). The matrix after rotation showed the factors therefore the
averages surpass the global average for all the items (except for items 6/6 and
9/1). All the values are perceived positively (except 6/6, 9/1 and for the SRFC
8/2-3).
We notice the associations which concern the quality as well as the benefit of the
service than the specific relation of the spectators with the club or the service.
These variables were awaited because they explain the strategies of the club.
The criteria held for the measure and evaluation of the responsibility factor of the
business Management Style, Security, Training and, before all, the CSR factor:
Regional engagement and social responsibility clearly figure as brand
associations. The analysis and discussion of items in several factors seam to be
difficult because we waited for them to stay clearly identifiable even after
rotation. The selection criteria has a number of factors (factors <1 explaining the
total variance, following the Scree-test or the Monte Carlo) will obtain different
results. It is a matter of the interpretation of the part of the researcher, but for us
« the rotation has permitted a simplification and to result at a better
interpretation » (Malhotra, 2007: 536). Certain of these incoherencies merit to be
discussed later in our discussion.
10
Sport spectators Brand Associations of Stade Rennais F.C. et du F.C. Lorient
Tables 3/4: Factors and items of sport spectators brand associations (PCA after
rotation)
11
We confirm the first hypothesis for our two clubs (H11: The clubs’ brand image
corresponds to the desired image) but details have to be discussed.
We can equally confirm the second hypotheses (H21: CSR is a coherent factor
figuring in the perception of the spectators).
5 Discussions
The Rennais Club has been able to communicate a specific brand image and
mostly positive to spectators. The associations figuring in the FAs explain a big
part of the total variance. The items are coinciding with those desired by the
club; the club provided a real effort in different domains and put marketing
communication strategy in place. More factors are figuring in sport spectators’
brand perception compared to those of F.C.L. spectators. The two clubs -
companies- differ totally even if the core product, the match’s delivery, is the
same. Our research approach has taken this into account and we compared what
can be compared (Durkheim, 1895) and only items have been formulated which
have been mentioned by participants of the focus group or during the pre-test;
this inducts two different questionnaires with different items measuring sport
spectators’ brand associations while the three other parts of the questionnaire -
sport spectators’ attitude, knowledge of football industry and personal issues-
have been the same.
The F.C.L. did not show a clearly established strategy, however the variables of
the association stays equally positive for the club. This can be explained by facts
and historical evolution as well as the stability at the level of the coach, the
management by the president, (majority shareholder) and a specific public (aged
public). For the SRFC, the factors reflecting corporate responsibility can clearly
be distinguished in sport spectators’ brand associations. Economical
responsibility (Style of management), legal (Security, Formation) and ethical
issues (CSR factor) take a predominate place in these associations. The variable
Young players’ education that figures in the factor of CSR, PCA after rotation,
confirmed by the results of an open question, is a value recognized by the public.
The French clubs have an obligation to train their young players, aged fifteen to
twenty-two years, both on the field and in the classroom. This variable was not
maintained for the F.C.L. Their training center is not agreed by the League, the
public knows it and the pre-test brought us to remove the variable. The study
(2006/2007) with the SRFC also showed that the players, who grew up within
the club, are the spectator’s favourite players; three young talents are originally
from the clubs training center and figured among five star players mentioned
spontaneously.
In Rennes, the acts of violence or other forms of infractions, attributed to
supporters are rare, the hooliganism is non-existent. The security of the stadium
and of its surroundings is a responsibility of the clubs management. The security
staff checks spectators before entering the stadiums; following the new security
rules and fans are searched. We noted a strong correlation between the security
and the family outing.
One factor in the two tables (cf. table 3-4: factors FA6 F.C.L. and FA7 SRFC)
contains two variables of a rather weak average. It groups together the clubs the
variables 6/6 “self-expression” (question asked to the spectators: “Are you at the
stadium to express and demonstrate your feelings? Like the wave for example
12
…”) as well as FA9/1 entertainment (question asked to the spectators: “Is it
important to you that the club liven up the stadium with entertainment like
cheerleaders (or SRFC) and the giant screen?”). The expectations of the
spectators are disappointed with the level of the entertainment and the Bretons
do not go to the stadium to “express” themselves.
Rennes’ club has developed marketing communication strategies to bring several
issues to spectators’ perception and the measures reflect perfectly the matching
between marketing communication strategies, the desired image and the
perceived brand image. Even for the F.C.L. nearly all perceptible factors stay
widely positive; this result is surprising while the environment (decrepit
equipment, bad perceived entertainment -except the on field game-, no
merchandising products available and no marketing strategy developed allowing
to make corresponding the offer to demand) seams not to corresponding to
Ligue 1 clubs standard; there are other reasons and we supposed that these
spectators have specific link to the club. One asked question (“willing to take a
new season ticket for the next season”) made a cap between both clubs’
spectators behaviour evident; while most of the actual season ticket holders from
the F.C.L. will retake a new season ticket, the S.R.C.F. season ticket holders
seams much less decided. The F.C.L. spectators are like ultimate fans -those who
are committed to the team- and can be identified as devoted fans (Pimentel and
Reynolds, 2004), and this public “pushed” the statistics’ outcomes.
Concerning the CSR factor after rotation accounts for the SRFC a coherent
dimension; however the variables of security and training are added. One
explanation is found in the special device put in place by the club and the
function and management. The SRFC present values that surpass the framework
of the economical and legal requirements; they are to attribute to a category of
ethical values. Without wanting to push the interpretation too far, these variables
can be attributed to the brand attitudes that form according to Keller (1993: 4-5,
brand attitude) the basis of the perception of the consumers in line with the
brand. The club has put a strategy in place communicating club’s key values as
young players’ education, regional engagement and security issues; but, actually
there is no real CSR strategy, no global approach exist to develop this embryonic
managerial strategy to a company’s engagement to CSR. Therefore, “the
Directions Committee will put an extraordinary meeting after season 2008-2009
in place to discuss a common, coordinated CSR strategy corresponding to
modern engaged companies.” The F.C.L. is a newcomer in the Ligue 1 and game
performance has been centered in the club’s strategy. The direction knows about
the importance of CSR engagement but is actually drown by the everyday life in
sport entertainment industry: delivering a high performance event ones or twice a
week.
Since the 1980’s, the theory of social responsibility made obvious that the
permanence of a business depends not only on its purely economic capacities,
but equally in its mastery of the sociological contingencies and surrounding
political (Martinet, 1983). The corporates of the sport entertainment -especially
soccer- are observed very closely by multiples groups of people. These
businesses and have obtained a visibility thanks to the media issue, which
assures the presents of sport spectators in front of the screen and in the stadium
(Merten, 2003; Riedl, 2006). Affect of method or new economical reality and
business contingency, the corporate social responsibilities made their entrance in
13
the stadiums. These first measurements in the framework of the present research
go beyond the report of the spectator’s perceptions in direct line with different
engagements by the part of these different businesses. Also, we have put
evidence characteristics of the industrial sector of the sport spectacle and
underlined that the actors compete and collaborate together; this is one of the
characteristics of the sport product (Mason, 1999).
14
be tested, actually it stays conceptual and temporary. This verification permits us
to obtain a confirmed model to evaluate the impact of different factors of the
attitudes of consumers, including, the behaviour buying purchase of entry tickets
or merchandising product. After, we attempt to apply the same research protocol
at other terrains of observation, notably outside of France. The limitations of our
research concerns observation variables therefore we have kept the number
limited. The advantage is equally in the pragmatic considerations, we
interviewed people in 15 to 20 minutes. What’s more, after the elimination of the
items following the pre-test, the PCA of definitive research showed coherent
factors after rotation. This approach guarantees a common base for a n analysis
of corporates which are fundamentally different –even if the delivered product
stays similar. For future studies, we can therefore argue the number of items
which permit us to enlarge the observation criteria before arriving at a more
detailed profile for each business.
__________________________
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