Sports Economics Networking is publishes scholarly research in the field of sports economics
by Sebahattin Devecioğlu
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A whole new ball game: Navigating digital transformation in the sports industry

There is no question that technology has transformed, and will continue to transform, businesses across all industries, radically altering both the customer experience and the inner workings of organizations. The sports industry, in particular, is undergoing rapid upheaval, and digital technology is unlocking unprecedented opportunities for growth. In order to fully capitalize on those opportunities, however, sports organizations will likely need a digital overhaul. “Doing digital” is not enough: They will have to embed digital in every aspect of the business, transforming people, processes, and technology.
Going through any kind of organizational transformation is not to be taken lightly. But given the significant opportunities that exist for sports organizations, the undertaking is well-worth considering. These opportunities fall into four categories.
UEFA Club Licensing and Financial Sustainability Regulations 2022

The new football earnings requirements are an evolution of the existing break-even requirements and will bring greater stability to club finances. To ease the implementation for clubs, the calculation of football earnings is similar to the calculation of the break-even result. While the acceptable deviation has increased from €30 million over three years to €60 million over three years, requirements to ensure the fair value of transactions, to improve the clubs’ balance sheet, and to reduce debts have been significantly strengthened.
The biggest innovation in the new regulations will be the introduction of a squad cost rule to bring better control in relation to player wages and transfer costs. The regulation limits spending on wages, transfers, and agent fees to 70% of club revenue. Assessments will be performed on a timely basis and breaches will result in pre-defined financial penalties and sporting measures.
The new regulations will come into force in June 2022. There will be gradual implementation over three years to allow clubs the necessary time to adapt.