Providing an Analytical Model for Sports Investment in Tehran Province

Background and Purpose
The sports industry, with its vast global reach and multifaceted nature, has increasingly become a prime platform for investment. Unlike many other sectors, sports generate revenue not merely through the sale or consumption of products but through the engagement and entertainment of spectators who willingly pay to watch sporting events (Rajabi, 2012). This unique characteristic, combined with the industrialization and commercialization of sports in various disciplines worldwide, has elevated the importance of sports investment as a critical area of economic development.
Investment in sports is driven by a variety of factors, among which the expectation of profit plays a pivotal role. Financial sponsors and investors are primarily motivated by the potential returns on their investments, which can be substantial given the growing popularity and commercialization of sports (Huda, 2001). Beyond economic incentives, sports also contribute significantly to health, social cohesion, and cultural vitality, making investment in this sector socially valuable as well.
In Iran, the sports industry is at a crossroads. The sector’s heavy reliance on government funding has limited the inflow of private capital and constrained growth. Given the large volume of financial transactions and the significant number of people involved in sports activities, there is an urgent need for scientific and effective management of sports investment. This necessity is especially pronounced in Tehran Province, which serves as a hub for sports activities and business in the country.
This research seeks to identify and classify the areas and criteria for sports investment in Tehran Province. By providing a comprehensive framework and insights to officials at the General Directorate of Sports and Youth, the study aims to facilitate informed decision-making and attract private investors, thereby fostering sustainable growth in the sports sector.
 
Materials and Methods
The research is applied in nature and belongs to exploratory analytical studies. It adopts a qualitative approach to deeply understand the complex factors influencing sports investment. The statistical population includes senior managers of the General Directorate of Sports and Youth of Tehran Province, heads of sports and youth departments across the province’s cities, leaders of sports federations in Tehran, investors involved in sports projects—including leaseholders of sports complexes, club owners, manufacturers, and distributors of sports equipment—and sports management professors affiliated with Tehran Province.
A purposive sampling method was employed to select participants for in-depth interviews. Sampling continued until theoretical saturation was reached, ensuring comprehensive coverage of relevant perspectives. In total, fourteen experts specializing in sports investment were interviewed.
To ensure the reliability of the data, process auditing was conducted, which involved making all analyzed data, coding schemes, categories, research objectives, and questions available to experts for review. Additionally, intra-subject agreement was assessed by having a PhD specialist in sports management re-code three randomly selected interviews. The overall reliability agreement between coders was 84%, indicating a high level of consistency.
Data analysis followed the grounded theory coding process, consisting of three stages:
Open Coding: An inductive process where sentences and phrases from interviews were coded to capture a broad range of concepts and themes.
Axial Coding: This stage focused on identifying relationships among categories, properties, and dimensions derived from open coding, refining the structure of the data.
Selective Coding: The final stage integrated the categories into a coherent conceptual model, identifying core categories and their interconnections.
 
Results
The analysis revealed that sports investment in Tehran Province can be understood through five key dimensions:
Investment Assumptions: These refer to the underlying beliefs and expectations that drive investment decisions, including perceived profitability, risk tolerance, and market potential.
Special Capacities: Unique features or advantages of Tehran Province, such as geographic location, infrastructure, and industrial ecosystem, that enhance its attractiveness for sports investment.
Investment Areas: Specific sectors within the sports industry where investment opportunities exist, such as facility development, sports equipment manufacturing, event hosting, and sports services.
Investment Criteria: The standards and requirements that guide the selection of investment projects, including financial viability, market demand, regulatory compliance, and social impact.
Outcomes: The anticipated benefits and returns from sports investments, including economic growth, job creation, social development, and enhancement of sports culture.
The findings suggest that the public sector’s limited capacity to provide capital necessitates creating platforms to inform and engage private investors. Enhancing investors’ understanding of the sports sector’s potential and clearly defining investment areas and criteria can attract sustained capital inflows.
Moreover, the utilization of specialized human resources and the establishment of agile organizational structures tailored to current needs are critical for maximizing investment effectiveness.
 
 
Discussion
Tehran Province’s geographic and infrastructural advantages significantly contribute to its potential as a sports investment hub. Its strategic location offers easy access to all parts of the country, supported by robust transportation infrastructure including airports, railways, and road networks. Additionally, the presence of numerous industrial parks and diverse companies provides opportunities to leverage external capacities and foster synergistic investments.
The nature of investors themselves influences investment patterns. Public sector entities may prioritize different objectives compared to private or semi-public investors, resulting in variations in investment scale and focus. Large-scale investments tend to be more common among institutional investors, while smaller, niche investments are often driven by private entrepreneurs.
The multifaceted nature of sports investment requires a comprehensive approach that integrates economic, social, and managerial factors. The study underscores that investment planning is not a linear process but a dynamic interplay of various elements that must be carefully balanced.
To optimize investment outcomes, the research recommends establishing a dedicated committee within Tehran’s sports authorities to provide comprehensive services and information to potential investors. This committee should leverage specialists in investment and sports management to guide investors through the complexities of the sector.
A long-term perspective is essential for sustainable development. Authorities should avoid short-termism and instead focus on creating stable, predictable environments that encourage ongoing investment. Collaboration with other organizations to maximize the use of existing spaces and facilities can further enhance investment attractiveness.
Additional measures include attracting capital through endowments, stabilizing economic conditions to reduce investor uncertainty, identifying and promoting natural and tourism capacities, utilizing media to raise awareness of sports investment opportunities, organizing major sports events to draw investor attention, and implementing regulatory reforms such as tax incentives and debt relief to facilitate investment.
The study also highlights the need for further research, suggesting that future studies could focus on specific sectors within sports investment or employ quantitative methods to validate and expand upon the qualitative findings presented here.
 
Conclusion
This research provides a comprehensive framework for understanding and enhancing sports investment opportunities in Tehran Province. By identifying key dimensions and criteria, it offers actionable insights for policymakers, sports managers, and investors. The study emphasizes the critical role of private sector engagement, informed decision-making, and strategic planning in driving sustainable growth in the sports industry.
The unique capacities of Tehran Province, combined with targeted support and facilitation, position it as a promising destination for sports investment. Implementing the recommendations outlined can stimulate economic development, create employment, and enrich the cultural fabric of the region through sports.