Presenting a Model of the role of Corporate Governance and Ownership Structure on Innovation in Iranian Professional Sports Clubs

Introduction

In recent decades, professional sports have evolved from a mere recreational and competitive activity into one of the most important and lucrative industries in the world. This remarkable transformation has turned sports clubs from simple, informal entities into complex organizations with advanced management structures, multi-billion-dollar financial turnovers, and extensive influence on the economy and society (Conti et al., 2025). Today, professional sports clubs function as economic and productive enterprises within the sports industry, whose success is measured not only by athletic results but also by their ability to compete in complex and dynamic domestic and international markets (Flanagan., 2025). With substantial revenues generated from the sale of television broadcasting rights, marketing, player transfers, sponsorships, and brand commercialization, these institutions have become the driving force of the sports economy. Consequently, the need for professional management and a coherent organizational structure to govern them is increasingly felt (Cerrato., 2025).

In such a competitive and challenging environment, innovation for clubs is not a choice but a necessity for survival and progress (Zhang., 2025). Innovation in professional sports extends beyond mere technical outcomes and encompasses all dimensions of a club, including marketing and fan engagement, business and revenue generation models, the use of modern technologies in training and competitions, talent and academy management, and even methods of interaction with stakeholders (Hoff., 2022). Clubs capable of creating and implementing innovation not only perform more successfully in attracting and retaining fans and sponsors but can also create long-term competitive advantage through sustainable value creation (English., 2025). Indeed, innovation is regarded as a strategic necessity for the growth and sustainable development of professional clubs in the present era, and its absence can signify backwardness and ultimately elimination from the competitive arena (Gabrisova et al., 2025).

Nevertheless, achieving innovation in professional sports clubs is not simply possible and is influenced by numerous and complex factors. One of the most significant and fundamental of these factors is the manner of management and governance of these organizations, namely the corporate governance system (Hu & Shu., 2024). Corporate governance, which refers to the set of relationships among company management, the board of directors, shareholders, and other stakeholder groups, provides a framework for determining organizational objectives, the means to achieve those objectives, and performance monitoring (Myung., 2024). Indeed, good corporate governance can, by fostering transparency, accountability, managerial discipline, and a balance among diverse interests, create a suitable platform for intelligent risk-taking and investment in innovative areas (Boillat & Tallec Marston., 2015). Mechanisms such as board independence, the presence of non-executive directors, performance-based reward systems, information transparency, and effective monitoring of managerial performance are among the key components of corporate governance that can steer a club's strategic orientation towards innovation, or conversely, by creating rigid and inflexible bureaucracy, hinder the emergence of creativity and innovation (Dowling, Harris & Garcia., 2025).

Alongside corporate governance, the ownership structure of clubs is also considered another determining factor in their propensity for innovation (Michie & Oughton., 2005). The fundamental question is who or what entity owns the club and how this ownership impacts strategic decisions, particularly in the area of innovation (Von Schomberg et al., 2025). In Iran, professional sports clubs exhibit considerable ownership diversity. Some are state-owned and administered by the Ministry of Sports and Youth or non-governmental public institutions, others are privately owned by companies or private investors, and a group operates with mixed or institutional ownership structures (Salimi et al., 2024). This ownership diversity creates different motivations, goals, and approaches for managers and decision-makers. For instance, in state-owned clubs, political and social objectives may take priority over economic and innovative goals, whereas in private clubs, profit maximization and return on investment can be the primary drivers of innovation (Salimi & Khodaparast., 2019). Furthermore, the concentration or dispersion of ownership, the extent of owners' involvement in executive affairs, and their long-term or short-term perspective are all factors that influence the innovation climate within the club (Nunez-Barriopedro et al., 2020).

In line with the subject of the present study, numerous international research works have examined various dimensions of this field, and a review of their most important findings is necessary. Baumeister et al. (2025), in a study of 54 German football clubs, concluded that governance structures are highly heterogeneous, but their underlying institutional logic is homogeneous. Governance analysis must go beyond legal form and examine the complex relationships between associations and affiliated companies. Myung (2024) investigated ESG management values in South Korean professional clubs from consumers' perspective and identified three types of values including "trust-centeredness," "community-centeredness," and "safety and respect culture" as the main components of club sustainability. Manzari (2024), in a study on Italian Serie A clubs, showed that corporate governance variables such as board composition, supervisory bodies, and transparency have a direct and significant impact on profitability and reduction of bankruptcy risk in clubs. Yu and Jeong (2024) identified practical ESG strategies for professional clubs in three areas: waste management and sustainable operations (environmental), youth development and social services (social), and transparency and anti-corruption measures (governance). Solanellas et al. (2024), in a study on Catalan sports federations, demonstrated that lack of stakeholder participation in decision-making, absence of managerial supervision, and low transparency are the main governance challenges of these organizations. Furthermore, the size of federations has a significant relationship with their governance characteristics. Agostino and Thomasson (2024), comparing two clubs, Malmo (non-profit) and Bologna (private), showed that both clubs focus equally on financial and non-financial performance and, in practice, employ a combination of governance models to manage the tension between these two types of performance. Evans, Walters, and Hamil (2024), in a study on English clubs, demonstrated that foreign owners in the Premier League create greater financial stability compared to domestic owners and have less tendency toward financial gambling to achieve sporting success. Morales and Schubert (2022), in their research, critiqued the governance structure of North American professional leagues and concluded that power concentration in the commissioner's office, lack of separation of powers, and disregard for stakeholders are the most important challenges facing these leagues on the path to good governance. Kozma and Teker (2022), examining digital innovations in English Premier League clubs, concluded that fans are the main stakeholders of these innovations, and this increases clubs' bargaining power against players. Nazari, Fathi, and Shafiei (2024), in a study titled "investigating the impact of corporate governance on innovation," demonstrated that ownership concentration, state ownership, and institutional ownership reduce innovation, while the proportion of non-executive directors and board compensation increase it. Akbari Birgani, Malmir, and Abbasi (2023), in a study titled "analysis of the effects of privatization on organizational performance," showed that privatization has a positive impact on organizational goals, corporate governance characteristics, organizational structure, and firm performance. Mohammadi Raeoof et al. (2021), in a study titled "identifying factors affecting the realization of good governance in Iran's sports industry," identified eight main factors including development-oriented governance, efficient administrative structure, and rule of law. These studies, while confirming the environmental and structural complexities facing Iranian clubs, highlight the necessity of paying attention to the governance system and ownership structure as the main infrastructures of professional development.

Despite the increasing importance of innovation for the survival and success of professional sports clubs in Iran, and despite the recognized role of corporate governance and ownership structure in shaping organizational outcomes, there remains a significant gap in understanding how these structural dimensions interact to influence innovation processes within clubs. Existing domestic studies have largely examined privatization, commercialization, or financial performance in isolation, without developing an integrated and process-oriented explanation of how governance mechanisms and ownership configurations shape innovation capacity. Consequently, there is a lack of a comprehensive theoretical model that explains the structural drivers, contextual conditions, and strategic responses affecting innovation in Iranian professional sports clubs.

In light of the aforementioned points and with a deep understanding of the existing research gap regarding the relationship among corporate governance, ownership structure, and innovation in Iranian professional sports clubs, the present study seeks to address this important issue by employing the grounded theory method. Aiming to present a model based on objective data and the lived experiences of activists and experts in this field, this research endeavors to provide a clear and in-depth picture of how corporate governance mechanisms and various ownership structures influence the innovation process in clubs. The findings of this study, while enriching the theoretical literature in the field of sports management and corporate governance, can offer practical and applicable guidelines for policymakers, senior sports officials in the country, club boards of directors, investors, and other stakeholders. Relying on these guidelines, they can provide the necessary foundations for creating and strengthening innovation in these influential social and economic institutions. Accordingly, this research aims to develop a grounded theoretical model explaining the relationship between corporate governance, ownership structure, and innovation in Iranian professional sports clubs, thereby contributing to both the theoretical advancement of sports governance research and the practical improvement of policy and managerial decision-making in this field.

 Research Methods

The present study is applied in terms of purpose and exploratory in terms of nature, as it seeks to discover and explain a phenomenon that has not yet been systematically investigated in the context of Iranian professional sports clubs. The approach of this research is qualitative, and the strategy employed for its implementation is grounded theory with an emphasis on the Glaserian approach. This approach emphasizes the emergence of theory from data and requires the researcher to enter the research field without predetermined theoretical assumptions and allow the theory to gradually and inductively emerge from the data (Vahdani & Labbaf, 2026). The reason for selecting this approach for the present study was that the main objective was to discover and present a model based on objective data and the lived experiences of activists and experts in Iranian professional sports clubs, rather than testing pre-existing theories. In the Glaserian approach, the process of constant comparison of data and continuous coding forms the core of the method, and the researcher simultaneously collects and analyzes data (Khodaparast, 2023). In this research, this process was fully observed, and data analysis was conducted concurrently with data collection.

The statistical population of this study included all experts and authorities possessing sufficient knowledge and experience in the field of Iranian professional sports clubs. These individuals comprised CEOs of professional sports clubs, members of the boards of directors of these clubs, university professors specialized in sports management—particularly in the management of professional clubs—senior experts from sports federations associated with professional leagues, as well as legal and financial consultants active in the sports industry. The main criterion for selecting these individuals was their deep familiarity with managerial mechanisms, ownership structures, and issues related to innovation in Iranian professional sports clubs. Accordingly, individuals who had at least five years of direct professional experience in one of the aforementioned fields and who had been continuously engaged with the contemporary managerial challenges of professional clubs were considered eligible to participate in the study.

Sampling in this study was conducted purposively using the theoretical sampling method, which is a distinctive feature of grounded theory research. In theoretical sampling, the researcher initially selects participants who are able to provide rich and relevant information about the phenomenon under investigation. As the research progresses and initial concepts and categories begin to emerge from the data, the sampling process continues purposefully in order to refine, develop, and saturate those categories.

In the present study, the sampling process began with the purposive selection of three experienced managers from Iran’s Football Premier League clubs. Following the extraction of initial codes and concepts from the early interviews, theoretical sampling continued in order to obtain richer and more diverse insights into the emerging categories. The criterion for determining the final sample size was theoretical saturation. Theoretical saturation refers to the stage at which newly collected data no longer provide additional information for generating new concepts or categories and the main categories have been sufficiently developed and enriched. In the present study, theoretical saturation was achieved after conducting 21 in-depth interviews with experts. From the nineteenth interview onward, the data collected were largely repetitions of previously identified information and no new categories or concepts emerged; nevertheless, two additional interviews were conducted to ensure that full theoretical saturation had been reached.

The main data collection tool in this study was semi-structured and in-depth interviews. Semi-structured interviews allowed the researcher, while adhering to the main axes of the research, to have the necessary flexibility to follow up on emerging ideas and concepts in dialogue with the interviewees. The interview questions were designed around the main axes of the research, namely corporate governance, ownership structure, and innovation in professional sports clubs; however, the interview process proceeded in a completely open manner so that the interviewees could fully express their experiences, views, and perceptions. Examples of interview questions included: "How is corporate governance exercised in your club, and what impact has it had on innovation?", "What are the characteristics of your club's ownership structure, and what role has this structure played in innovative decision-making?", "What forms has innovation taken in your club, and what factors have been effective in strengthening or weakening it?", "What is your experience of the interaction between the board of directors and the CEO regarding innovative projects?", and "What obstacles and facilitators exist for innovation in Iranian sports clubs?". The interviews were recorded with the permission of the interviewees and were then transcribed accurately and verbatim to serve as the basis for analysis. In addition to interviews, other data sources such as documents and records available in clubs (e.g., articles of association, annual reports, and minutes of meetings), official websites of clubs and federations, related media news and reports, as well as the researcher's field notes, were also used to enrich the data.

The data analysis method in this study was based on the coding stages in grounded theory with the Glaserian approach. In this approach, the analysis process begins with open coding. At this stage, the raw data obtained from interviews and other sources were examined line by line and phrase by phrase, and initial concepts were extracted from them. After extracting the initial codes, selective coding, that is, the process of constant comparison, began during which each new code was compared with previous codes to identify similarities and differences. Through this continuous comparison, similar codes were categorized into concepts and then into more abstract categories. In the final stage, namely theoretical coding, the researcher sought to discover the relationships among the main categories and identify the core or central category that encompasses other categories and gives meaning to them. At this stage, among Glaser's coding families, the 6C's family, including Causes, Consequences, Conditions, Contexts, Contingencies (Interventions), and Covariances (Strategies), was used to organize the categories and discover the relationships among them. Finally, the final research model was developed and presented based on the identified categories and relationships.

To assess the trustworthiness or credibility of the findings, which corresponds to internal validity in quantitative research, member checking and external audit methods were employed. In the member checking method, a summary of the findings and the coding performed was provided to five of the interviewees, and their opinions were sought regarding the alignment of these findings with their perceptions and experiences. After reviewing the material, these participants, while generally confirming the findings, also provided additional points that were incorporated into the final analysis. In the external audit method, the research process and the coding performed were reviewed and confirmed by two professors familiar with qualitative methods and grounded theory. To ensure transferability or generalizability of the findings, which corresponds to external validity in quantitative research, the method of thick and detailed description of the research context was used. Accordingly, a precise and comprehensive description of the participants' characteristics, the research contexts, and the data collection and analysis process has been provided so that readers can judge the extent to which these findings are transferable to similar contexts.

Findings

Table 1 shows the demographic information of the statistical sample of the study.

Table 1- Demographic Information of the Statistical Sample of the Study

Open coding is the first stage of data analysis in the Glaserian approach, during which the raw data obtained from interviews are examined line by line and phrase by phrase, and initial concepts are extracted from them. In the present study, from a total of 21 in-depth interviews conducted with experts and authorities in the field of Iranian professional sports clubs, 150 initial codes were extracted. Table 2 shows examples of the interview texts and the extracted initial codes.

Table 2- Examples of Interview Texts and Open Coding (Extraction of Initial Codes from Interviews)

Selective coding is the second stage of data analysis in the Glaserian approach, during which the researcher focuses on the main categories and integrates similar and related codes into more abstract concepts. The purpose of this stage is to categorize the initial codes and identify the main categories, which will ultimately lead to the identification of the core category. In the present study, from a total of 150 initial codes, after continuous analysis and comparison and the integration of similar codes, 26 main categories were extracted. Table 3 shows the selective coding process and the resulting main categories.

Table 3- Selective Coding (Integration of Initial Codes and Formation of Main Categories)

Although some categories may appear conceptually close, they represent analytically distinct dimensions of the phenomenon. For instance, board dependence refers to the structural and political lack of autonomy of board members, whereas lack of expertise in board composition relates to professional competence, and board support for innovation reflects the behavioral orientation of board members toward innovative initiatives. Similar distinctions were applied across other categories to maintain analytical clarity within the 6C framework.

Theoretical coding is the final stage of analysis in the Glaserian approach, during which the researcher seeks to discover the relationships among the main categories and identify the core or central category that encompasses other categories and gives meaning to them. At this stage, among Glaser's coding families, the 6C's family (including Causes, Consequences, Conditions, Contexts, Contingencies, and Covariances) was used to organize the categories and discover the relationships among them. Based on the analysis conducted, the core category of this research was identified as "structure-dependent innovation," which indicates that innovation in Iranian professional sports clubs is strongly influenced by governance and ownership structures and, in the absence of institutionalized systems, depends on individual and ad hoc factors. The final research model is shown in Figure 1.

Figure 1. Model of Corporate Governance and Ownership Structure on Innovation in Iranian Professional Sports Clubs Based on Glaser's 6C's Family

The final conceptual model (Figure 1), developed based on Glaser’s 6C’s family, illustrates a dynamic and cyclical process of innovation within Iranian professional sports clubs. The Core Category, “Structure-Dependent Innovation,” is positioned at the heart of this process, being shaped by and simultaneously influencing all other components.

The model suggests that Causes such as “board dependence” and “state-owner policy dualities” create a foundational pressure that necessitates a specific type of innovation. These causes operate within specific Contexts (e.g., bureaucratic barriers and budgetary constraints) and are further influenced by Conditions like “organizational resistance” and a “short-term result focus,” which act as barriers to systematic progress.

To navigate this environment, certain Strategies (e.g., institutionalizing consultation) are employed, though their effectiveness is often moderated by Contingencies/Interventions such as “private ownership influence” or “the role of expert managers.” The interaction of these elements leads to specific Consequences, primarily the “continuation of the structure-dependent innovation cycle,” which reinforces the original structural dependencies. This cyclical relationship demonstrates that innovation in these clubs is not a discrete event but a systemic outcome of the interplay between governance structures, ownership patterns, and organizational behaviors.

In order to better understand the distribution of the categories identified in the research, the frequency of initial codes related to each of the components of Glaser's 6C's family was examined. The findings of this descriptive analysis are presented in Table 4.

Table 4- Frequency Distribution of Initial Codes Based on the Components of Glaser's 6C's Family

Based on the findings of the above table, the "Contexts" component, with 40 codes and 26.7% of the total, had the highest frequency, indicating the prominent role of structural, legal, and managerial contexts in the formation of the studied phenomenon. The "Interventions" and "Causes" components, with 38 and 37 codes respectively, were ranked next, demonstrating the importance of positive moderating factors on the one hand and the root causes of the problem on the other. The "Conditions" component, with 30 codes, indicates the influence of the psychological and cultural atmosphere governing the organizations. A noteworthy point is the very low frequency of the "Strategies" component, with only 5 codes, which reflects the weakness of systematic and codified strategies in Iranian sports clubs for facing the barriers to innovation.

Discussion

The present study, utilizing the grounded theory approach and Glaser's 6C's family, analyzed the factors influencing innovation in Iranian professional sports clubs. The findings indicate that the core category of the research can be identified as "structure-dependent innovation," meaning that innovation in the country's sports clubs is primarily influenced by governance structures and the type of ownership, and due to the lack of institutionalized systems, it is mainly dependent on individual and ad hoc factors. In the following discussion, the various dimensions of the paradigmatic model based on the 6C's, including causal conditions, intervening conditions, contexts, interventions, strategies, and consequences of this phenomenon, are examined separately.

An examination of the causes of the formation of the structure‑dependent innovation phenomenon shows that the roots of this problem mainly lie in the nature of the ownership structure and the composition of the clubs’ boards of directors. Dependence and lack of board independence, identified through seven initial codes as one of the main causes, indicate that board members, instead of playing an independent supervisory and steering role, are often dependent on upstream institutions, and their meetings have increasingly become ceremonial. Specifically, the finding that board dependence and institutional interference contribute to stagnant innovation in clubs highlights how governance structures can constrain innovative capacity. In such conditions, the board may function less as an independent strategic body and more as an administrative intermediary aligned with upstream institutions, which limits its ability to promote innovation-oriented decision‑making. Factors such as the absence of members, multiplicity of responsibilities, and insufficient focus on club affairs further weaken the board’s capacity to support innovation initiatives. These findings are consistent with studies emphasizing the importance of board independence in promoting innovation. In particular, the results are consistent with the research findings of Nazari, Fathi, and Shafiei (2024), which showed that increasing the proportion of non‑executive directors-who possess greater independence-enhances innovation. The findings are also aligned with Baumeister et al. (2025), who emphasize the necessity of analyzing governance structures beyond their formal legal arrangements and paying attention to complex institutional relationships.

Furthermore, individual-orientation and lack of systematic innovation, with 9 initial codes, which has the highest frequency among the causes, indicates that innovation in Iranian sports clubs is not based on organizational processes and systems, but rather depends on the presence of educated, motivated, and creative managers. This important finding indicates that with the departure of a creative manager, innovation also leaves the club and does not continue. This finding is consistent with the research results of Von Schomberg et al. (2025), which showed that innovation in sports organizations is influenced by formal structures and informal networks, and the lack of systematic structures leads to individual-orientation. It is also consistent with the results of Nazari, Fathi, and Shafiei (2024) regarding the impact of ownership and structure on innovation.

The characteristics of the ownership structure and its impact on decision-making, with 8 initial codes, as another main cause, show that the type of ownership (state-owned, private, institutional, or family) has a direct impact on the speed and quality of innovative decisions. Slowness of decision-making in dispersed institutional ownership and, on the other hand, missed opportunities due to lack of timely decision-making, are among the obstacles identified in this category. This finding is consistent with the research results of Agostino and Thomasson (2024), which showed that clubs with different ownership types (non-profit and private) both focus on financial and non-financial performance but use a combination of governance models. It is also consistent with the results of Evans, Walters, and Hamil (2024) regarding the impact of ownership type on financial stability and managerial approaches.

In addition to these, lack of expertise and meritocracy in the composition of the board of directors with 4 codes, contradiction and duality in the policies of the state owner with 4 codes, and institutional and structural barriers at the macro level with 5 codes, constitute other causes affecting the formation of the structure-dependent innovation phenomenon. The results related to institutional and structural barriers are consistent with the findings of Mohammadi Raeoof et al. (2021), who identified development-oriented governance and efficient administrative structure as main factors for realizing good governance in Iran's sports industry. The total of these causes, which account for 37 codes out of the total 150 codes, indicates that the roots of the problem are mainly in the structural and managerial layers of the clubs, and to create a fundamental transformation in innovation, these roots must be seriously considered.

The conditions governing the structure-dependent innovation phenomenon, which act as the context and environment conducive to the continuation of this situation, were identified with 30 initial codes. Among these, fear, conservatism, and organizational resistance, with 12 initial codes, as the most prominent conditions, represent the psychological and cultural atmosphere governing the clubs. The board's fear of failure in innovative projects, fear of financial accountability in the public sector, managers' job insecurity, and excessive conservatism in decision-making are all factors that reduce risk-taking and hinder the testing of new ideas. This finding is consistent with behavioral theories in organizations and shows that as long as an atmosphere of fear and insecurity prevails in the organization, innovation cannot be expected. These results are consistent with the findings of Solanellas et al. (2024) regarding the lack of managerial supervision and lack of stakeholder participation as main governance challenges.

An incomplete and superficial understanding of the concept of innovation, with 5 initial codes, indicates that in many clubs, innovation is merely considered to mean bringing in a foreign player or is limited to the technical department, and its broad dimensions in management, marketing, and technology are neglected. Also, equating innovation with being expensive is a misunderstanding that prevents investment in this area. This finding is consistent with the research of Gabrisova et al. (2025), which addressed the application of modern sports technologies from professional environments to everyday life, and shows that an incomplete understanding of innovation leads to a failure to utilize these capacities.

Focus on short-term results, with 4 initial codes, especially in state-owned clubs where result-oriented goals are communicated by the owner, has created conditions where managers seek immediate and early results instead of long-term planning for innovation. Weakness in monitoring innovative performance, with 3 initial codes, and the symbolic existence of innovation support structures, with 3 initial codes, are other conditions that contribute to the continuation of the status quo. The lack of a culture supporting failure and risk-taking, with 3 initial codes, although less frequent, is of great importance because in organizations where error and failure are not tolerated and innovative managers are punished in case of failure, innovation can never be expected. These findings are consistent with the research results of Manzari (2024), which emphasizes the impact of transparency and supervision on profitability and reduction of bankruptcy risk, and shows that the type of supervision (purely financial and result-oriented) can hinder innovation.

The contexts, which indicate the specific situation and broader setting in which the phenomenon occurs, with 40 initial codes, had the highest frequency among the 6C's categories. This finding is very significant because it shows that the most important part of the innovation problem in Iranian sports clubs relates to the macro contexts and settings. Structural-legal and bureaucratic barriers, with 14 initial codes, which have the highest frequency among all categories, indicate that cumbersome laws and regulations, administrative bureaucracy, non-conformity of articles of association with innovative needs, and legal obstacles to attracting specialized personnel are the most important barriers facing innovation. Slowness of the decision-making process, administrative red tape for approving new projects, and the multiplicity of administrative stages for approving ideas are all factors that stifle innovation in its infancy. These findings are consistent with the research results of Akbari Birgani, Malmir, and Abbasi (2023), which showed the positive impact of privatization on corporate governance characteristics and organizational structure, and confirm that bureaucratic government structures hinder innovation. They are also in line with the findings of Mohammadi Raeoof et al. (2021) regarding the importance of efficient administrative structure and the rule of law.

Weakness in planning and foresight, with 9 initial codes, as the second most frequent category in contexts, indicates that in board meetings, there is no discussion about innovation, and meetings are often fruitless and involved in marginal issues. Managerial instability due to frequent changes of managers, lack of long-term planning for innovation, and lack of a succession planning system are among the examples of this weakness. Budgetary limitations and inefficient resource allocation, with 5 initial codes, an inefficient reward and motivation system, with 5 initial codes, weakness of data and digital infrastructure, with 4 initial codes, and lack of a participation and idea generation system, with 3 initial codes, are other contexts that have provided an unfavorable setting for innovation in Iranian sports clubs. Lack of financial resources for innovation, lack of independent budget allocation for research and development, lack of connection between compensation and innovation, lack of data infrastructure, and lack of fan participation in idea generation are among the major obstacles identified in these contexts. These findings are consistent with the research results of Kozma and Teker (2022), which pointed to the role of fans as the main stakeholders of digital innovations, and show that the lack of fan participation in Iran is a serious gap.

Interventions, which act as moderating and influencing factors on the process of the phenomenon, with 38 initial codes, have the second highest frequency after contexts. This point is very promising because it shows that despite the existence of numerous obstacles, there are also factors that can positively influence innovation and change the existing process. The influence of private ownership on innovation, with 10 initial codes, as the most prominent intervention, indicates that clubs with private ownership have more motivation and flexibility for innovation. The private owner's motivation for profitability and branding, the stimulating role of the investor, and greater flexibility in crisis are all factors that introduce privatization as an effective intervention in promoting innovation. This finding is consistent with the extensive literature in the field of corporate governance and shows that changing the ownership structure from state-owned to private can be a powerful driver of innovation. These results are completely consistent with the findings of Nazari, Fathi, and Shafiei (2024) regarding the negative impact of state and institutional ownership on innovation, as well as with the results of Akbari Birgani, Malmir, and Abbasi (2023) on the positive effects of privatization on organizational performance. They are also in line with the findings of Agostino and Thomasson (2024), who pointed to the combination of governance models in private and non-profit clubs.

The reformative role of independent and specialized managers, with 9 initial codes, as the second most important intervention, indicates that the presence of non-executive, independent directors with specialized education on the board can have a significant impact on criticizing the status quo, presenting new ideas, and correcting the course. The independence of opinion of these managers and their impartial view of club issues have made them an important factor in encouraging others to innovate. This finding is consistent with the research results of Nazari, Fathi, and Shafiei (2024), which showed that the proportion of non-executive directors increases innovation. It is also in line with the findings of Myung (2024) regarding ESG management values, including trust-centeredness and a culture of respect, which require an independent and impartial perspective.

The role of consultants, diverse specializations, and knowledge networks, with 8 initial codes, is another positive intervention indicating that using young and specialized consultants, the presence of foreign consultants, cooperation with knowledge-based companies and startups, and benefiting from diverse specializations can provide rich resources for idea generation and innovation. This finding is consistent with the research of Von Schomberg et al. (2025), which emphasized the role of informal networks alongside formal structures in innovation. It is also in line with the results of Yu and Jeong (2024), who identified practical ESG strategies in various areas.

The positive role of diversity and the presence of specific groups, with 5 initial codes, especially the presence of women on the board and young managers, has been identified as a source of innovative ideas. Collaboration with scientific and academic centers, with 4 initial codes, although less frequent, indicates the high capacity of these collaborations to solve club problems through theses and academic research. Finally, the role of managers' personal connections, with 2 initial codes, has been identified as an effective intervention in attracting sponsors and creating useful networks.

Strategies, which are defined as deliberate and planned actions by actors to manage the situation, with only 5 initial codes, have the lowest frequency among the 6C's categories. This finding is very important and thought-provoking because it shows that Iranian managers and sports clubs do not have many systematic and codified strategies to face the barriers to innovation and improve the existing situation, and they act mostly reactively and on an ad hoc basis. Institutionalizing consultation and participation, with 2 initial codes, including the formation of a strategic council and a think tank with the presence of elites, is one of the limited strategies identified. The role of board support for innovation, with 3 initial codes, is another strategy indicating that the board's support for the CEO and ideas can play an important role in implementing innovation. However, the very low frequency of strategies (only 3.3% of all codes) indicates that Iranian sports clubs face a serious weakness at the strategic level and need to develop and implement systematic and long-term strategies to improve innovation. This weakness can be due to managerial instability, lack of foresight, or lack of necessary knowledge and expertise in the field of strategic planning. This finding is consistent with the research results of Morales and Schubert (2022), who pointed to the concentration of power and lack of separation of powers as governance challenges, and shows that the lack of codified strategies in Iranian clubs also stems from these structural deficiencies.

Conclusion

The primary theoretical contribution of this study lies in the conceptualization of the ‘Structure-Dependent Innovation Cycle’. While previous studies have separately addressed privatization or managerial performance, this model provides an integrated process-oriented framework based on Glaser’s 6C’s. It advances existing knowledge by demonstrating that innovation in emerging sports markets is not merely a lack of resources, but a systemic byproduct of ‘path dependency’ in ownership. The model moves beyond the descriptive ‘what’ of governance failures to the explanatory ‘how’ of innovation stagnation.

In sum, the findings of this research indicate that innovation in Iranian professional sports clubs is a multifaceted phenomenon influenced by numerous factors, which can be explained within the framework of a paradigmatic model based on the 6C's. Structural and managerial causes, along with cultural and psychological conditions, within a context of bureaucratic and legal settings, have created a situation in which innovation, instead of being a systematic process, is dependent on individual and ad hoc factors. Although positive interventions such as the presence of private ownership, independent managers, and specialized consultants can moderate this situation, the weakness of systematic strategies has led to the perpetuation of the vicious cycle of structure-dependent innovation. Accordingly, to break out of this cycle and move towards sustainable and systematic innovation, we need fundamental reforms at various levels, including revising laws and regulations, reducing administrative bureaucracy, enhancing board independence and expertise, encouraging private ownership, creating an organizational culture supportive of risk-taking, and developing long-term and systematic strategies for innovation. By presenting the paradigmatic model of structure-dependent innovation, this research not only provides a clear picture of the existing situation but can also serve as a basis for policy-making and decision-making at the macro level of the country's sports industry, as well as a guide for club managers in promoting innovation. Based on this, recommendations are presented as follows:

Improving the professional independence of club boards can strengthen strategic decision-making. Introducing a minimum quota of independent directors with expertise in fields such as sports marketing, technology, or innovation management could help diversify perspectives and reduce excessive dependence on governmental directives.

Reducing bureaucratic rigidity is essential for enabling experimentation and faster decision-making. One practical approach is to establish regulatory innovation sandboxes, where selected clubs are allowed to test new ideas-such as digital fan‑engagement platforms, data‑driven marketing tools, or new commercial partnerships-within a temporary and more flexible regulatory environment. This allows clubs to experiment with innovative initiatives while facing fewer administrative barriers.

Aligning financial incentives with innovation outcomes may encourage clubs to move beyond routine administrative practices. For example, part of governmental or institutional funding could be allocated through innovation-linked budgeting mechanisms, in which a defined portion of the annual subsidy is contingent upon measurable innovation activities such as new revenue models, digital engagement initiatives, or technological adoption in club operations.

Creating an organizational culture supportive of risk-taking and innovation, through holding training workshops, establishing annual innovation awards, and appreciating creative managers and employees, can gradually reduce the atmosphere of fear and conservatism. Senior managers should, through their behavior, provide a practical model of accepting calculated risks and supporting new ideas, and suggestion systems with guaranteed review and rewards for top ideas should be established.

Investing in data and digital infrastructure, including the creation of a fan relationship management system and systematic data collection, can provide a valuable source for identifying needs and creating new ideas. Collaborating with information technology companies and startups to design innovative applications and digital services, and strengthening digital branding through active presence on social media, are among other effective measures in this area.

Creating and strengthening knowledge networks through concluding memoranda of understanding with universities and research centers, defining real club problems as topics for graduate theses, and forming advisory councils with the presence of elites, young consultants, and experts from various fields, can provide fresh ideas and innovative solutions for clubs.

Designing competency development programs for managers and employees with an emphasis on topics such as design thinking, innovation management, organizational entrepreneurship, and sports marketing, through internal training courses and dispatch to international workshops, helps enhance the knowledge and skills of the human workforce. In the manager selection process, specialized competencies and creativity should take priority over background and established history.

Establishing a succession planning system and organizational knowledge management is essential to prevent the loss of innovation with the departure of creative managers. Identifying talented and creative individuals at various levels of the organization, preparing them for higher responsibilities, and creating an organizational knowledge bank to record and document experiences and ideas can ensure the continuity of innovation.

Attention to diversity and the presence of specific groups such as women and young managers in the composition of the board of directors and the management team, considering their positive role in presenting innovative ideas, is recommended. Creating quotas for the presence of these groups in state-owned clubs and encouraging private clubs to utilize their capacities can contribute to intellectual diversity and increase creativity in decision-making.

Developing a five-year strategic innovation plan with the determination of specific goals in technical, managerial, marketing, and technological areas, and allocating an independent budget for research and development, are essential for moving towards systematic innovation. Club assemblies should include the necessary credits for innovation in the annual budget approval and continuously monitor the proper implementation of approved plans so that innovation is not set aside as a luxury measure in times of financial crisis.

Research Limitations and Suggestions for Future Research

Beyond the geographical focus, a significant limitation is the ‘social desirability bias’ inherent in interviewing high-level officials within a state-dependent system. Despite anonymity, the political sensitivity of ownership reforms may have led some participants to under-report internal governance conflicts. Additionally, while Grounded Theory allowed for deep exploration, the lack of longitudinal data means the model captures a ‘snapshot’ of a shifting legal landscape. Future studies should employ ethnographic observations of board meetings to capture real-time decision-making dynamics.

Based on the findings of this study, several avenues for future research are suggested. Conducting comparative studies between Iranian professional sports clubs and clubs in other countries, particularly in the Middle East region, can provide valuable insights into the influence of contextual factors on the relationship between governance, ownership, and innovation. Future research could focus on specific types of innovation (technological, marketing, social) separately. Given the important role of fans, research focusing on their participation in innovation processes is recommended. Furthermore, studies examining the role of digital transformation and emerging technologies in innovation within sports clubs are suggested. Research focusing on the perspectives of other stakeholders such as players, sponsors, and media can provide a more comprehensive understanding of innovation dynamics. Conducting comparative studies across clubs with different ownership types (state-owned, private, institutional, family-owned) using quantitative methods is recommended to test the impact of ownership structures on innovation outcomes. Finally, action research or case study approaches are suggested for examining the implementation of specific governance reforms and innovation strategies in clubs.

Acknowledgments

We are grateful to all the participants who contributed to this study.

Conflicts of Interest

There is no conflict of interest.

Funding

The current study received no financial from any organization or institution.

Statement on the Use of AI

No AI has been used in this article.