International Journal of Management and Economics Fundamental
51
https://theusajournals.com/index.php/ijmef
VOLUME
Vol.05 Issue 06 2025
PAGE NO.
51-53
10.37547/ijmef/Volume05Issue06-10
Economic Mechanism for Managing The Entrepreneurial
Activity Of A Sports Organization: Structure,
Components, And Effectiveness
Ismagulova Gulmira Nuraliyevna
Acting Associate Professor of the Department of Management and Organization of Sports Events Uzbek State University of Physical
Culture and Sports, Uzbekistan
Matkarimova Nargiz Tuxtasinovna
Acting Associate Professor of the Department of Management and Organization of Sports Events Uzbek State University of Physical
Culture and Sports, Uzbekistan
Received:
11 April 2025;
Accepted:
07 May 2025;
Published:
17 June 2025
Abstract:
This article examines the formation and functioning of the economic mechanism for managing
entrepreneurial activity in modern sports organizations. The relevance of the topic is driven by the increasing
commercialization of sports and the need for sports clubs and federations to adapt to market conditions. The
objective of the study is to develop and theoretically substantiate a structural-functional model of the economic
mechanism for managing the entrepreneurial activity of a sports organization. The research employs methods of
system analysis, economic modeling, and a structural-functional approach. As a result of the study, the essence
of this mechanism is defined, its key subsystems (financial, marketing, operational, and innovation-strategic) are
identified, and the interrelations between them are analyzed. An integrated model is proposed to optimize
management decisions and enhance the commercial effectiveness of a sports organization. The practical
significance of the work lies in the potential for sports organization managers to use the proposed model for
diagnosing, planning, and controlling entrepreneurial activities.
Keywords:
Sports management, sports economics, entrepreneurial activity, economic mechanism, sports
organization, commercialization of sports, performance management.
Introduction:
Modern sports are undergoing profound
transformations, evolving from a socially significant
phenomenon into a full-fledged sector of the economy.
Professional sports organizations (clubs, leagues,
federations)
are
increasingly
involved
in
entrepreneurial activities aimed at generating profit
and ensuring financial sustainability. This process,
known as the commercialization of sports, presents
management with new, more complex challenges. The
success of a sports organization today depends not only
on athletic results but also on the efficiency of
managing its commercial streams: media rights sales,
sponsorships, ticketing programs, merchandising, and
other activities.
Despite a significant div of research on specific
aspects of the sports business, such as sports marketing
(Kotler, 2013), financial management (Szymanski,
2009), or sports event management, there is a lack of
comprehensive studies in the scientific literature that
view the management of entrepreneurial activity as an
integrated system. Existing approaches are often
fragmented and fail to capture the synergistic effect of
the interaction between different functional areas.
There is no unified understanding of the structure and
operating principles of an economic mechanism that
would
integrate
all
elements
of
sports
entrepreneurship into a single, manageable system.
Thus, the relevance of this study is determined by the
need to scientifically substantiate and develop a
holistic model of the economic mechanism for
International Journal of Management and Economics Fundamental
52
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
managing the entrepreneurial activity of a sports
organization, adapted to modern market realities.
The objective of the study is to develop and
theoretically substantiate a structural-functional model
of the economic mechanism for managing the
entrepreneurial activity of a sports organization.
To achieve this objective, the following tasks were set:
1.
To clarify the concept and essence of the
"economic mechanism for managing entrepreneurial
activity" as it applies to the sports industry.
2.
To identify the key structural components
(subsystems) of this mechanism.
3.
To
analyze
the
interrelations
and
interdependencies
between
the
identified
components.
4.
To propose an integrated model of the
mechanism and describe its operating principles.
Methods
The methodological basis of the research was a
system approach, which allows for viewing the
economic mechanism as a complex, open system
consisting of interconnected elements. A set of general
scientific and special methods was used to solve the
tasks:
•
Structural-functional
analysis:
used
to
decompose the economic mechanism into its
constituent subsystems (structure) and to determine
the role of each in achieving the organization's overall
goals (functions).
•
Economic modeling: applied to construct a
conceptual model that visually demonstrates the
relationships between the mechanism's elements and
the flows of resources (financial, informational,
human).
•
Analysis and synthesis of scientific literature:
allowed for the generalization of existing theoretical
approaches to sports management and the
identification of a research gap.
•
Case Study: to verify the theoretical
propositions, data from open sources (financial
reports, strategic plans, marketing campaigns) of 15
leading European football clubs for the period 2019-
2023 were analyzed. The analysis was aimed at
identifying typical management practices and their
impact on commercial revenues.
The
study
is
primarily
theoretical
and
methodological in nature. Empirical data were used to
illustrate and confirm the validity of the proposed
model.
Results
Based on the analysis, the author's definition was
formulated. The economic mechanism for managing
the entrepreneurial activity of a sports organization is a
set of interconnected forms, methods, tools, and levers
(financial,
marketing,
organizational,
legal)
purposefully used to initiate, regulate, and optimize
commercial processes with the aim of maximizing
profit
and
ensuring the
long-term
financial
sustainability of the organization.
Through structural-functional analysis, four key
subsystems of this mechanism were identified:
1.
Financial Subsystem. This is the core of the
mechanism. Its functions include: budgeting, cash flow
management, investment attraction, cost control
(including player transfers and salaries), financial
planning, and analysis. Its tools include financial
accounting, auditing, lending, leasing, and brand and
asset valuation.
2.
Marketing Subsystem. This is responsible for
revenue generation. Its functions include: brand
management, development of sponsorship packages,
implementation of ticket and season-pass programs,
sale of media rights, management of retail sales
(merchandising),
digital
marketing,
and
fan
engagement (CRM). The success of this subsystem
directly impacts the resources of the financial
subsystem.
3.
Operational Subsystem. This ensures the
creation of the "sports product" and related services.
Its functions include: management of sports personnel
(scouting, contracts), management of sports facilities
(stadiums, training grounds), organization and
execution of matches and events (event management),
logistics, and security. The efficiency of this subsystem
determines the quality of the product promoted by the
marketing subsystem.
4.
Innovation and Strategic Subsystem. This
determines the organization's development vector. Its
functions include: strategic analysis and planning, risk
management, implementation of innovations (sports
technology, digital transformation, new business
models), monitoring of market conditions, and
development of international relations. This subsystem
sets the goals and standards for the other three
subsystems.
Interrelations between Subsystems: the case study
analysis revealed a strong interdependence among the
components. For example, an investment from the
financial subsystem in acquiring a star player
(operational subsystem) leads to an increase in
merchandise sales and heightened sponsor interest
(marketing subsystem), which in turn increases
revenue (financial subsystem). A failure in one
International Journal of Management and Economics Fundamental
53
https://theusajournals.com/index.php/ijmef
International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
subsystem (e.g., a failed marketing campaign)
immediately affects financial performance and limits
the capabilities of the operational and strategic
activities.
Based on this data, an integrated model of the
economic mechanism was developed (see Figure 1 - a
conceptual description). The model is a cycle where the
innovation-strategic subsystem sets goals. Based on
these, the financial subsystem allocates resources
between the operational and marketing subsystems.
The results of their activities (athletic achievements
and commercial revenues) are evaluated and serve as
a basis for adjusting the strategy and initiating a new
management cycle. A key element of the model is the
feedback loops that ensure the mechanism's
adaptability to changes in the external and internal
environment.
DISCUSSION AND CONCLUSION
The model of the economic mechanism for managing
entrepreneurial activity proposed in this study is
distinguished from existing approaches by its
comprehensiveness and its focus on interrelations.
Unlike works that focus on individual functions, this
model presents management as an integrated process
where financial, marketing, and operational decisions
are subordinated to a single strategy.
The theoretical significance of the work lies in
clarifying the concept of the "economic mechanism"
for the sports industry and in developing its structural-
functional model, which can serve as a basis for further
research in sports management.
The practical implications for managers of sports
organizations are as follows:
•
It is necessary to move away from a
fragmented, "siloed" approach to management in favor
of a systemic vision.
•
The proposed model can be used as a
diagnostic tool to identify "weak links" in a club's
commercial activities.
•
Effective management requires the balanced
development of all four subsystems. An overemphasis
on one (e.g., player transfers) at the expense of others
(e.g., marketing) leads to long-term financial instability.
The limitations of the study are related to its
theoretical nature. Full verification of the model
requires
quantitative
research,
including
the
construction of econometric models to assess the
contribution of each subsystem to the organization's
final financial results. Furthermore, the analysis was
limited to football clubs, and the model may require
adaptation for other sports or types of organizations
(e.g., federations).
In conclusion, it can be stated that the formation and
effective use of a holistic economic mechanism is a key
factor for the competitiveness and sustainable
development of a modern sports organization. The
proposed model is a step towards creating a universal
toolkit for managing the complex and multifaceted
entrepreneurial activities in the sports industry.
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