Publications
Publications
- 2023
- HBS Working Paper Series
LALIGA—From a Soccer Competition Organizer to a Global Player in the Sports and Entertainment Industry
By: Stephen A. Greyser, Kenneth Cortsen and Juan Fuentes Fernández
Abstract
LALIGA, the first- and second-tier professional soccer league (known as “football” outside of the U.S. and Canada) in Spain, enters its 100th soccer season later this decade. The most popular game in the world (Giulianotti, 2012) has gone through many changes since LALIGA began play in 1929 (O’Brien, 2022). Therefore, the purpose of this Working Paper is to describe the development of LALIGA since its initiation in 1929. However, the emphasis of the paper is to explore and analyze LALIGA’s evolution towards becoming an influential global business and brand in the contemporary world of the business of sports. Expansion, progress and improved sporting and commercial maturity go hand in hand with the recognized achievements observed by the league’s local, regional, national, and global fan bases. Soccer fans from every corner of the globe are aware of the accomplishments made on the pitch by the league’s globally recognized competitive powerhouses, Real Madrid and FC Barcelona. Yet, these triumphs are complemented by off-the-pitch strategies and corporate ideas and actions, which have transformed LALIGA into a global organization with more than seven hundred employees spread all around the world. Consequently, LALIGA is positioned to take its next steps as a key player in the competitive industry and business of sports and entertainment. With a global presence covering offices and delegations in 41 countries. LALIGA has applied different strategies to boost growth in its main revenue stream (broadcasting rights), to nurture and grow its fanbase in Spain and abroad, and to evolve its product range and brand equity in order to overcome new challenges in the fast-changing and competitive sports entertainment nexus. In total, LALIGA’s international efforts span 90 countries, including 11 offices in key locations and three joint ventures in the United States, in China, and in the Middle East and North Africa (MENA)—LALIGA’s top-priority markets overseas. In addition, LALIGA has strived to improve its digitalization efforts and to implement new technologies in various phases of its value chain (competition management, fan engagement and content enhancement) while diversifying its business offerings and value proposition. Thus, LALIGA is cognizant about building future-proof financial “fitness” via generating new revenue streams intended to help expand its branding footprint globally. As an entity representing 42 teams in the first and second divisions, LALIGA has recently signed and negotiated “Boost LALIGA,” a €1.994 billion capital injection in the Spanish soccer ecosystem from the investment fund CVC. The investment aims to “soften” the negative economic consequences of the COVID-19 pandemic, but mainly to accelerate corporate growth in the league and its clubs, by providing the respective soccer clubs resources to invest in such areas as soccer infrastructure, digitalization, and international development.
Keywords
Soccer; "Sports Organizations,; Business History; Strategy; Brands and Branding; Technology Adoption; Sports Industry
Citation
Greyser, Stephen A., Kenneth Cortsen, and Juan Fuentes Fernández. "LALIGA—From a Soccer Competition Organizer to a Global Player in the Sports and Entertainment Industry." Harvard Business School Working Paper, No. 24-009, August 2023.