Linking the sports and financial performance of professional basketball teams in Orlen Basket Liga

Abstract

This thesis explores the relationship between financial performance and sports success in the Orlen Basket Liga, Poland’s premier basketball league. The research problem centres on how the financial health of professional sports teams impacts their performance. The object of the study is the financial performance of basketball clubs in the Orlen Basket Liga. The primary aim is to assess these clubs' financial stability and identify best financial practices from other leagues that could be applied to the Polish basketball context to achieve sports success. The research employs a combination of qualitative and quantitative methods. A comprehensive literature review serves as the theoretical foundation, addressing key concepts like revenue sources, expenses, league models, and the interplay between financial and sports performance. Quantitative methods involve the application of financial performance models, such as the Z(HA) and Beneish Models, to evaluate the financial stability of clubs. Qualitative research, including questionnaires and interviews with league and club managers, provides additional insights into financial strategies and challenges. The results show that financial performance significantly affects sports success in the Orlen Basket Liga. Clubs with higher revenues and greater budgets, particularly for player salaries, tend to have better sports results. However, Polish basketball clubs face significant financial challenges due to limited popularity, low sponsorship revenue, and a reliance on public funding. The research concludes that improving financial discipline, increasing the sport’s popularity, and attracting private investment are key to ensuring the long-term sustainability and success of Polish basketball. This paper is an empirical research oriented final master thesis.