The Effect of Privatization and Advertising on Sports Clubs Revenue in Ardabil Province

The purpose of this study was to investigate the effect of privatization and advertising on sports clubs revenue in Ardabil province.

The research method is descriptive- correlation based on partial least squares structural equation modeling. The statistical population of the research is all experts, managers, and supervisors of sports clubs in Ardabil province (N=90). 72 experts, managers and supervisors of sports clubs filled out the researcher-made questionnaires of privatization, advertising for sports clubs and the amount of club revenue during one year. Structural equation modeling based on the partial least squares in software Smart PLS was used to analyze collected data.

The results showed that the privatization have a direct and significant effect on the sports clubs revenue (β=0.634, t=13.481). The advertising has a direct and significant effect on the sports clubs revenue (β=0.286, t=6.675) as well. The study of the goodness of fit model showed that the proposed model has a strong fit (GOF = 0.847).

It can concluded that sports clubs through privatization move toward change in management, structure, manpower, increase and development services, cost management and improving efficiency and productivity and through advertising by changing barriers to entering the market to create a monopoly or promotes competition and as a result, they will increase their customers.