Year: 2025
Type: article
Abstract: In today's rapidly changing sports industry, sports clubs have begun to restructure in order to adapt to these changes, showing a particular tendency towards corporatisation in football. During this process, sports clubs have adopted corporate management and taken significant steps towards professionalisation by securing funds from capital markets. This allows them to access lower-cost, diversified, and long-term financing opportunities and to actively participate in capital markets. As part of this transition, capital increases have been implemented. This is the process of raising a company's capital by issuing new shares, based on a decision by the board of directors, following the collection of the prices of shares corresponding to the company's paid-in capital. A paid-in capital increase is based on the principle of granting existing shareholders the opportunity to acquire new securities in proportion to their shareholding before these securities are offered to third parties. A capital increase without consideration is carried out for reasons such as offsetting the real value of capital that has decreased due to inflation, utilising profits from the sale of subsidiaries and fixed assets, and achieving tax advantages. This study examined why four major Turkish clubs—Galatasaray, Fenerbahçe, Beşiktaş, and Trabzonspor—prefer the capital increase method to generate revenue and the results they have achieved through this process. It is evident that capital increases contribute to the clubs' corporate growth goals, strengthen their equity structures, and serve as an important tool in supporting their financial sustainability. Furthermore, these developments enable sports clubs to secure funding, manage debt effectively, and professionalise their organisational structures.
Authors: Abdullah Şimşek, Sebahattin Devecioğlu
Institutions: Munzur University, Fırat University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7117470010