Football today has become an industry sector. It applies in the global ecosystem and it definitely applies in South East Asian Market too. Indonesia, with its own domestic league structure known as Liga 1, Liga 2, and Liga 3 is no exception. Established since 2017, the said leagues have become the cornerstone for elite professional football. Despite football popularity in Indonesia, not many has discussed the very definition of industry value chain of football.
LEVELUP attempts to define the football industry value chain through a framework to provide introductory analysis. The discussion focuses on professional football sector on which professional football clubs participate in the official domestic competition operated by the football federation or its appointed operator. The unique nature of football industry is its existence, growth and development can only be driven by the league ecosystem. Football clubs are competitor to each other in the official matches, but should partner with each other to ensure continuity of the league.
The main economy actors is proposed to be the professional football clubs. The football clubs own the brand or identity of each respective clubs and not unusual become part of voter or shareholder within the body of the league operator. The football clubs then employs football coaches and its ancillary staffs to produce programs for talent scouting or talent developments. Football players or talents are procured and developed through series of training and elite academy program. These three part of the value chain is better known as the internal part of the football family.
Beyond the football clubs, we then have the competition structure that is either operated by a specific company or the federation itself. These 5 parts of the value chain are the very core of the football industry value chain that holds and maintain the football operation and commercial activities. Having said that, in football clubs, league operator, and football governing body, two basic functions that need to exist within the system consist of administrative/operation role and commercial role executed by its respective professionals.
What about football fans, broadcast media, and sponsors? LEVELUP argues those are better suited to be recognized as interested stakeholder. This includes, depending on the nature of each league, the security forces, local government, and even the facilities owners should the football clubs opt to rent the training grounds and match venue.
LEVELUP is a specialized business strategy and advisory firm for sport industry. We provide solutions related to fans insight, commercial strategy, and sport business consulting for a more comprehensive solution.