An enquiry into the nexus between transformation and financial sustainability of sporting organisations in South Africa
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Authors
Mayedwa, Khaya
Issue Date
2025
Type
Thesis
Language
en
Keywords
Financial sustainability , Inclusivity , Institutional theory , Revenue streams , Sporting organisation , Transformation , SDG 8 Decent Work and Economic Growth
Alternative Title
Abstract
Beyond its entertainment value, sport plays a vital economic role in South Africa, contributing significantly to GDP. For example, in 2018, sport tourism alone accounted for 6% of national GDP. In this context, transformation has emerged as a critical factor influencing financial sustainability, as sponsorships and other incentives are increasingly linked to transformation goals.
While scholars acknowledge the relationship between transformation and financial performance, their views differ, some see transformation as an outcome of financial sustainability, others as a driver. This paradox shapes the study's core research questions: (1) How has the sport revenue structure evolved over time? (2) What are the key drivers of financial sustainability in the sport industry? and (3) How is transformation associated with financial sustainability?
The study aims to unpack the complex relationship between transformation and financial sustainability in South African sport organisations. A descriptive design within a critical realism paradigm was used. Case studies of the South African Rugby Union and Cricket South Africa were examined in two phases: qualitative data (phase 1) and secondary quantitative data (phase 2). Thematic analysis and ordinary least squares regression were applied respectively.
Three key findings emerged: (1) Revenue structures have shifted from traditional streams, like broadcasting rights, to more diversified sources such as digital media and transformation-driven sponsorships. (2) Financial sustainability is driven by diversified income, good governance, and alignment with transformation goals. (3) The relationship between transformation and financial sustainability is complex but largely positive, organisations that embraced transformation attracted more sponsorship and improved their financial outlook.
The thesis contributes to new knowledge by offering a nuanced understanding of the transformation–sustainability nexus. It presents a strategic framework for aligning transformation objectives with financial goals and introduces two grounded definitions: transformation as a dynamic process of reconfiguring organisational frameworks, and financial sustainability as an adaptive capability to align strategies with internal and external demands. Future research could explore comparative international contexts to identify best practices in implementing transformation policy in sport.
Description
Text in English