MEASURING INTELLECTUAL CAPITAL FOR FOOTBALL CLUBS: EVIDENCE FROM TURKISH FIRST DIVISION FOOTBALL LEAGUE

Abstract

In sports industry intangible sources such as fan loyalty, the talent players, the experience of the management team become more and more important in creating team value. There is a growing awareness that intellectual capital is a key asset for clubs’ financial success. Therefore this study is a pioneering effort todetermine and compare the intellectual capital of Turkish First Division football clubs whose shares are publicly traded at the Istanbul Stock Exchange (ISE). In the analysis part of this study, determining and comparing the intellectual capital ratios of this publicly traded clubs has been aimed. To this aim the concept of intellectual capital was analyzed with the Value Added Intellectual Capital (VAIC)Method. The findings indicate that Galatasaray Sport Club uses its intellectual capital more efficiently. Higher intellectual capital value means higher market share for football clubs. Therefore from sports management perspective the major football clubs should develop their intellectual capitals.

Keywords

• Intellectual capital
• method
• value added intellectual capital