The role of governance in enhancing the confidence of sponsors and investors in the football industry

Abstract

This research aims to identify the role of governance in enhancing the confidence of sponsors and investors in the football industry. The researcher used the descriptive method, as it is suitable for the nature of the research. A random sample of (83) individuals was selected from:

Members of the Executive Committee of the Federation, numbering (7) individuals, and employees of the Iraqi Federation, numbering (13) individuals.

The study included (15) heads of sub-federations, (36) members of Iraqi Premier League clubs (club president + secretary), and (12) investors and sponsors in the sports sector. The researcher designed a questionnaire for the individuals and groups within the research community. One of the most important conclusions was the importance of transparency and financial disclosure. Financial disclosure is a key factor in enhancing sponsors' confidence in their investments within the clubs. In sports, financial transparency directly contributes to increasing opportunities to attract investors, reflecting its importance in supporting the financial and administrative stability of the club. Clubs' adherence to the rules set by both local and international federations for financial disclosure highlights the existence of a minimum level of regulatory controls in this area. Clear transparency in announcing player transfer deals helps reduce doubts and controversy surrounding contracting mechanisms. It is recommended to develop disclosure mechanisms, including the announcement of details of sponsorship and television broadcasting contracts, to reduce ambiguity and increase investor confidence. Establishing independent financial review and audit committees within sports clubs, comprising independent accounting experts to ensure integrity and impartiality, is also recommended.