Are the revenue generation approaches of juvenile clubs in the Ghanaian football landscape sustainable?

Purpose

Investment in sporting talents, particularly football, supports clubs to maintain their team-building model while promoting sporting and economic success. This is an integral aspect of how football clubs can sustain their financial streams in the dynamic football environment. This investment is missing in the context of juvenile football management, creating a huge monetary gap in youth football development in Ghana. The study investigates the financial performance and sustainability of juvenile football clubs in Ghana.

Design/methodology/approach

Data from 107 registered juvenile clubs across 6 prominent football regions in Ghana, and with independent samples, the Jonckheere–Terpstra test supported analysing the significant differences in revenue sources of these clubs.

Findings

Findings show that club owners contributed the most proportion to total revenue, while transfer fees constitute the second largest funding source for club activities. However, transfer fees (z = 2.477, p < 0.005) and sponsorship from other organisations (z = 3.340, p < 0.005) proved statistically significant to overall revenue. Sports equipment and transportation consumed a chunk of their budget. Inadequate financial support from the Ghana Football Association (GFA) and other stakeholders impedes their smooth operations.

Research limitations/implications

The revenue and expenditure measures in the questionnaire were expressed in relative terms, which only provide information about percentage contributions and proportions in an ordered categorical manner, not actual total values, and can be considered a limitation. A cross-sectional design was prioritised over a longitudinal design because it was the first of its kind in Ghana, researching the financial sustainability of amateur football clubs. Again, a number of juvenile clubs declined to participate in this study despite clear explanations of anonymity and assurances that it was for academic purposes. This could be a reflection of business culture of juvenile football clubs, which is a reluctance to discuss or show their financial information.

Practical implications

Clubs sustaining their revenue streams and becoming operational must create practical financial policies and structures that can support them to remain in business. They need the support of the GFA, government, corporate entities, communities and international bodies to drive that financial change for effective management of revenues in maintaining the status quo rather than being ruined. The results provide vital data and information for the National Juvenile Committee of the GFA to understand the challenges of clubs and take appropriate steps to address them for the promotion and development of the sport.

Social implications

Amateur clubs can capitalise on crowdfunding through active use of social media to reach out to their communities, ex-players and sympathisers via the digital space. The study's results and data can serve as important guides and useful documents for new investors venturing into the juvenile football space. This will contribute to improving financial stability and viability while minimising financial risks and avoiding future insolvency in managing amateur football clubs in Ghana.

Originality/value

In advancing knowledge on the subject, the study recommends that clubs strategically position themselves by improving their structures, community engagement and partnerships, embracing innovations and diversifying revenue sources through projects such as investing in farms, partnering with local companies and seeking professional advice on investment opportunities and business innovations. Club owners' inability to diversify their revenues pose a serious threat to their sustainability and waste of talent. This study adds to the scant literature on youth football management in developing countries.