Understanding the financial operations of amateur men’s football clubs in Hungary

Nagy, Benedek András (2020) Understanding the financial operations of amateur men’s football clubs in Hungary. BA/BSc thesis, BCE, International Study Programs. Szabadon elérhető változat / Unrestricted version: http://publikaciok.lib.uni-corvinus.hu/publikus/szd/Nagy_Benedek_Andras.pdf

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In my thesis paper, I research a field of study that, in my opinion, does not receive enough attention. The number of amateur football teams and players in Hungary is enormous, one of the reasons why amateur football cannot be neglected. I strongly believe that amateur football is essential when it comes to the development of professional football in Hungary. There were several successful professional football players, whose talent was discovered at a very young age in an amateur football club. My special interest in this topic was triggered by personal experiences, starting from a very young age. I have been playing in amateur football leagues for around 18 years. In the course of my football carrier, I had the chance to play against numerous football clubs in Hungary, and even outside the borders. Under diverse circumstances may I add. Football has a special position in our country. Nothing illustrates this better than those characteristics, which according to the traditional views, belong to the professional leagues only, but I personally experienced them even on an amateur level. The club, where I am currently playing is a freshly founded self-sufficient amateur football club. As a team, we had to face quite a few financial challenges, and we have to deal with these difficulties to this day. Probably this was my biggest motivation to shed some light on the financial operations of a club and gain a better understanding of all the background work. My research aim was to get a better grasp at how Hungarian amateur teams survive financially and search for financial opportunities they could exploit in the future. It was fascinating to observe that even within the frames of amateur football, how huge the differences are in the financial functioning of clubs. Amateur football organizations went through enormous changes in the last decades, which is the result of the special attention the government has on developing football. I am also elaborating the presence of sponsorship, as I believe sponsorship has a tricky role when it comes to amateur football. I experienced during my research that the respondents of my survey have negative impressions about the system of sponsorship in Hungary, but at the same time, 45% of the amateur clubs filling my questionnaire, have ongoing business-based sponsorship cooperation. I believe that other sports like handball or volleyball have similar numbers in case of professional sport clubs, which is an unbelievable difference. In my research paper, I highlighted the differences between the TAO program and sponsorship deals to draw attention to its relevance. Football clubs participating in the TAO program with a supporting company should focus on the quality of the relationship, as it may lead to further collaboration between them. Due to the current situation in Hungary, football is facing some serious challenges fighting its popularity, which may become obstacles for amateur football clubs to find supporting organizations. The importance of building human relationships will play an even greater role, than before, in acquiring sponsorship deals. Nevertheless, clubs should take matters into their own hands instead of just waiting for the appearance of a generous sponsor. In the final part of my paper, I am observing the presence of the transfer market. It is a phenomenon that further proves the idea of amateur football having an extraordinary role amongst recreational sports. Even though one of the main motivations of consumers of amateur sports is to stay healthy, I cannot go past the fact that amateur football players have other incentives as well. Unfortunately, it is not possible to prove that amateur players earn money in the form of a monthly salary, but I can assure the reader that it is indeed the case. Furthermore, the fact that amateur clubs buy and sell players for a transfer fee, shows how amateur football resembles professional sports. There are players in the highest division of Budapest earning more than professional handball or basketball players, but still, officially playing on an amateur level. The fund clubs should invest in the improvement of sports facilities or sports equipment for their organization, are rather wasted on ex-professionals with zero potential. Not once, I have played with discredited professional footballers who demand their high salaries even on an amateur level. My final conclusion is that as long as some amateur football clubs apply different techniques to reorganize the money they receive, for example, from the TAO program for youth development and spend it on the salaries of amateur players, Hungarian football cannot be expected to develop and reach the desired level. Youth development and amateur football are key ingredients in the long-term success of a nation’s football. In order to support my previous statement, I would like to close my thesis paper with a quote from Robin Sharma: “Every pro was once an amateur. Every expert was once a beginner. So dream big. And start now.”

Item Type:BA/BSc thesis
Culture, sport
ID Code:13990
Specialisation:Economist in International Business
Deposited On:05 Oct 2021 15:40
Last Modified:02 Dec 2021 11:54

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