Introduction and Objective: The lack of a comprehensive profitability model based on business management may be one of the main reasons for the weak financial performance of sports clubs. Therefore, the present study was conducted with the aim of developing a profitability model for private sports clubs based on business management in West Azerbaijan Province.
Methods: The study employed a descriptive-correlational design using structural equation modeling (SEM). The statistical population consisted of all managers of private sports clubs in West Azerbaijan Province (N= 596), from whom 231 participants were selected as the research sample based on Morgan’s table. Data were collected using the standardized Business Management Questionnaire developed by Al-Bashir et al. (2008) and the Profitability Questionnaire developed by Soltani (2017). Data analysis was performed using Pearson correlation and structural equation modeling through SPSS and AMOS software.
Results: The results of structural equation modeling indicated that the model demonstrated an acceptable fit (χ²/df= 2.763, GFI= 0.908, CFI= 0.925, NFI= 0.903, RMSEA= 0.098). Furthermore, supplier relationship (0.374), internal organizational efficiency (0.513), and customer relationship (0.464) were identified as significant indicators of business management. Likewise, customers (0.351), media activities (0.493), advertising (0.529), sponsorship (0.487), and commercial activity revenues (0.583) were found to be significant indicators of profitability (p< 0.05). The findings also revealed that business management had a positive and significant effect on the profitability of private sports clubs (β= 0.597, t= 4.593, p= 0.001).
Conclusion: Overall, business management can be considered not merely a subsidiary function but a fundamental determinant of the economic success of private sports clubs. Clubs that pay greater attention to business management practices are more likely to achieve sustainable profitability, expand their market presence, and increase their economic share within the sports industry.