Abstract

The case presents Independiente del Valle Specialized High-Performance Club, an Ecuadorian sports club focused on soccer. It competed in the third division until 2007, when a group of businessmen led by Michel Deller assumed ownership. Since then, the club has offered housing, meals, and education to children aged 13 and older in its Specialized High-Performance Center in Quito, where they learn the fundamentals of soccer and refine their skills. Applying this holistic approach to player development, the team has been the leading contributor since 2012 to all of Ecuador's youth teams and the national squad. Additionally, the club rapidly became the second-most celebrated Ecuadorian team internationally with three regional trophies. The club's ability to attract, nurture, and develop talent caught the attention of international teams looking for rising stars and generated a consistent revenue flow through transfer fees. To ensure model sustainability, the Board of Directors decided never to include this income in the annual budget of the first division team to avoid short-sighted decisions that could consume the income in a few years. This commitment would be tested as Independiente increasingly competed with clubs with higher fan bases and historic sponsorship appeal, making it hard to cover the first-division team expenses through matchday income, sponsorships, and broadcasting rights. The case allows students to compare different business models in the global soccer industry and the challenges presented by a strategy for developing top football players.

 

Teaching
Master’s Program.
Students will learn:
1. The existence of contrasting business models among soccer clubs worldwide
2. The importance of choosing and implementing a coherent set of decisions to secure long-term success
3. The advantages and disadvantages of a strategy based on developing versus acquiring talent in the soccer industry
4. Ways to parallel leadership decisions present in the global soccer industry to other industries
Case number:
A03-24-0004
Author(s):
Tom Hunsaker
Year:
Setting:
Latin America
Length:
14 pages
Source:
Field
Thunderbird Associate Dean and Professor Tom Hunsaker

Tom Hunsaker

Executive Director, Global Challenge Lab and Clinical Professor