Gambling in professional sport: the enabling role of “regulatory legitimacy”

Purpose This study aims to explain why organisations remain vulnerable financial failure despite increasing regulation improve governance. Using a case of gambling and in professional football England, it introduces the concept “regulatory legitimacy” show how this enables clubs gamble. Design/methodology/approach The quantifies extent which Championship English Football League (EFL) adopt conventionally economically irrational decision run loss-making budget hope achieving sporting success. postulates criteria for evidence form by overspending on playing talent with data from clubs’ published statements. A pay-off matrix is developed compare intended actual outcomes. Findings research finds that strategy was both prevalent most successful achieve promotion. Originality/value makes three contributions. first quantification prevalence gambling. second finding that, regulations limit spending wages, rational non-economic sense because almost necessary promotion if club had not been relegated Premier previous season. third contribution development as way understand process through are implemented yet ineffective at curbing