Untitled

Abstract

Abstract:It is believed that sports and financial performances are linked to each other. Football clubs with weak financial performance are generally in bad positions in terms of sports success. On the other hand, there are only a limited number of football clubs which are in good financial standing without achieving serious sports success. After the increasing number of financial distress reports coming from various European football clubs and the concern about the role of external funds providers, the UEFA decided to increase its controlling power over the football industry and introduced a new set of rules known as the "financial fair play" in 2009. The purpose of this study is to analyze the financial performance of 22 football clubs listed on various European stock markets with the TOPSIS method, and to compare the results with the UEFA club rankings with the Spearman's rank correlation method. Ten financial ratios are used to obtain the ranking of these football clubs with the TOPSIS method. The Spearman's correlation coefficient is calculated as 0.17 and the test result do not indicate a statistically significant relation between sports success and financial performance.

On the relationship between sport and financial performances: an empirical investigation

“…On the other hand, Carmichael et al (2011) indicated how the results “on the field” are conditioned by the technical/tactical resources of the team and how the economic-financial management (more precisely the turnover) of the club can impact on these sports results. In contrast, Sakinc et al (2017) highlight a weak correlation between the two types of performance; the Spearman's correlation calculated is just 0.17 and is statistically not significant.…”

Comparative Analysis of the Financial Performance of 5 Major Football Clubs in Uefa Ranking

“…In these two main approaches, it is seen that both market-based financial performance indicators and accounting-based financial performance indicators are used. In studies, stock value has come to the fore as a market-based financial performance indicator (Renneboog & Vanbrabant, 2000;Berument et al, 2006;Aygören et al, 2008;Samagaio, 2009;Putra & Wasistha, 2018) while liquidity, profitability and liabilities have come to the fore as accounting-based performance indicators (Atmaca, 2012;Karadeniz et al, 2014;Nurcan et al, 2016;Pradhan et al, 2016;Sakınç et al, 2017). In addition, research that analyzes the financial performance of football clubs often focuses on a particular league (Guzman & Morrow, 2007;Baroncelli & Caruso, 2011;Ecer & Boyukaslan, 2014;Galariotis et al, 2018).…”

Investigation into the efficiencies of European football clubs with bi-objective multi-criteria data envelopment analysis

“…In many of these studies, MCDM methods have been used for performance evaluation. Pradhan et al (2016) investigated the financial performance of Italian clubs using gray relation analysis (GRA), Galariotis et al (2018) determined the business, financial and sports performance of clubs in the French league using the PROMETHEE II method, Sakınç et al (2017) studied the financial and sporting performance of 22 European clubs using the TOPSIS method, Chelmis et al (2019) investigated the financial, commercial and sporting performance of clubs in the Greek league using PROMETHEE II and Salabun et al (2020) determined the performance of football players using the characteristic objects method (COMET) and TOPSIS method. In addition to these methods used, the most used MCDM method is DEA which was developed by Charnes et al (1978).…”

“…It does not seem realistic to evaluate these two processes independently from each other in football clubs where financial success supports sportive success. Some studies in the literature have carried out financial evaluations by only considering the financial data of clubs (Pradhan et al, 2016;Chelmis et al, 2019), some have focused only on sportive success (Rossi et al, 2019;Salabun et al2020) and others have tried to associate financial success with sportive success (Sakınç et al, 2017;Galariotis et al, 2018). However, the success of football clubs is possible with the realization of the financial and sportive success together in this cycle.…”