Strategies for financing Iranian professional sport in the capital market
1Graduate of Sport Management - Faculty of Physical Education University of Tehran - Iran
2Associate Professor, Department of Sport Management, University of Tehran
3Associate Professor of Sport Management, University of Tehran
4Professor, Department of Sport Management, University of Tehran
There is not enough sports budget in Iran because of the state economy, increased economic sanctions, the difficulty of transfer foreign currency into the country and many other structural and management challenges. According to the high inflation rate, the current sports budget does not meet the needs of sports federations. On the other hand, sports clubs have many financial challenges because the price of players has increased and they require many other services for their club. This study employs professional sport financing strategies in the capital market. The methodology of this research was qualitative with the phenomenological approach and the required information was obtained, using documentary studies and semi-structured interviews. The research statistical population was university professors with specialization in sports management, economics, and entrepreneurship, sport's senior managers and career professionals, and senior managers of corporations and investment funds. The sampling method was non-random and purposeful. We continued interviews with experts to reach theoretical saturation (20 interviews). Finally, 9 financing strategies include issuance of leases to purchase equipment or property or working capital, exceptions to launch a production line, raw material for bonds, participation papers for sports projects, hybrid methods of issuing bonds for stadiums construction, collateral and bank loans, issuance of new shares and preference, shareholder raising, and project fundraising were identified as two major categories of debt and asset-based financing methods. Based on the results of the research, the entry into the capital market sports clubs benefit from a diverse range of financing tools and can use these methods to meet the financial needs such as building sports infrastructure, working capital, buying players with more quality, and paying debts.