Challenging parachute payments and unmasking English football’s finances

Wilson, Robert; Plumley, Daniel; Mondal, Sarthak; Parnell, Daniel

doi:10.1080/23750472.2020.1792745

Cited by 12 publications

(7 citation statements)

References 9 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…It is a combination of these factors that will drive the collective value of football clubs and help to maintain competitive balance within league structures. As Wilson et al (2020) note, now is not the time for clubs and leagues to act in self-interest. Instead, it is a time to engage with evidence and for collective action.…”

Section: Financial Distress In English Footballmentioning

confidence: 99%

Too big to fail? Accounting for predictions of financial distress in English professional football clubs

Plumley¹,

Serbera²,

Wilson

2020

JAAR

Self Cite

View full text Add to dashboard Cite

PurposeThis paper analyses English Premier League (EPL) and English Football League (EFL) championship clubs during the period 2002–2019 to anticipate financial distress with specific reference to footballs' Financial Fair Play (FFP) regulations.Design/methodology/approachData was collected for 43 professional football clubs competing in the EPL and Championship for the financial year ends 2002–2019. Analysis was conducted using the Z-score methodology and additional statistical tests were conducted to measure differences between groups. Data was split into two distinct periods to analyse club finances pre- and post-FFP.FindingsThe results show significant cases of financial distress amongst clubs in both divisions and that Championship clubs are in significantly poorer financial health than EPL clubs. In some cases, financially sustainability has worsened post-FFP. The “big 6” clubs – due to their size – seem to be more financially sound than the rest of the EPL, thus preventing a “too big to fail” effect. Overall, the financial situation in English football remains poor, a position that could be exacerbated by the economic crisis, caused by COVID-19.Research limitations/implicationsThe findings are not generalisable outside of the English football industry and the data is susceptible to usual accounting techniques and treatments.Practical implicationsThe paper recommends a re-distribution of broadcasting rights, on a more equal basis and incentivised with cost-reduction targets. The implementation of a hard salary cap at league level is also recommended to control costs. Furthermore, FFP regulations should be re-visited to deliver the original objectives of bringing about financial sustainability in European football.Originality/valueThe paper extends the evidence base of measuring financial distress in professional team sports and is also the first paper of its kind to examine this in relation to Championship clubs.

show abstract

Section: Financial Distress In English Footballmentioning

confidence: 99%

Too big to fail? Accounting for predictions of financial distress in English professional football clubs

Plumley¹,

Serbera²,

Wilson

2020

JAAR

Self Cite

View full text Add to dashboard Cite

show abstract

“…Topics like the fragility of financial structures (Hammerschmidt, et al, 2021), finance capacity (Bieliaieva, et al, 2020), challenges, and opportunities for financial performance (Weaver, 2020), and risk-return performance (Camlibel, et al, 2021) were discussed. Moreover, concepts like accounting data (Tingey-Holyoak and Pisaniello, 2020), entrepreneurial finance (Brown, et al, 2020), financial disparity (Wilson, et al, 2020), fraud (Valesco, et al, 2021), SMEs financing (Eggers, 2020), and sustainable finance (Zhan and Santos-Paulino, 2021) was talked over. In future research, when the tendency of firms to make financial manipulations during and after the crisis period (Dereköy, 2020) and the crisis context brought by COVID-19 are thought together, it would be meaningful to examine the fraud possibilities of firms during and after COVID-19.…”

Section: Accounting Finance and Auditmentioning

confidence: 99%

Covid-19 Pandemisi Sırasında Stratejik Yönetim Literatüründe Neler Söylendi?

BİLGİÇ

AYDOĞAN

2022

Toros Üniversitesi İİSBF Sosyal Bilimler Dergisi

View full text Add to dashboard Cite

Organizations are struggling with severe circumstances brought by COVID-19. When overly increased uncertainty and complexity in a pandemic are considered, strategic management has gained importance. Thus, researchers have focused on strategic management from different perspectives and this situation has led to that strategic management literature considering COVID-19 incredibly enlarged. Here, this research aims to show the architecture of the current literature and examine it with a holistic and critical perspective provided by using bibliometric analysis and critical systematic review concurrently. 226 articles were determined to represent the literature in two steps: (i) WOS search based on keywords and (ii) eliminating irrelevant articles by reading. To realize research aims, a twofold research method was adopted. By leveraging bibliometric analysis, the map of the current literature was shown. Then, a critical systematic review based on content analysis of 226 articles was carried out. Herein, more/less studied fields and future research directions were shared, and methods & levels of analysis of research were shared.

show abstract

“…As Wilson et al (2020) indicate, the financial consequences of COVID-19 are severe for football's finances. This is particularly obvious outside the top tier of the game, the English Premier League, notably the English Football Championship (EFL), Scottish Premiership and Scottish Championship.…”

Section: The Importance Of Incomementioning

confidence: 99%

“…Additional money has found its way into the Championship in the form of parachute and solidarity payments (see Wilson et al, 2018Wilson et al, , 2020. However, it too has resulted in that money being spent predominantly on player wages.…”

Section: The Importance Of Incomementioning

confidence: 99%

COVID-19: the return of football fans

Bond

Cockayne

Ludvigsen

et al. 2020

Managing Sport and Leisure

Self Cite

View full text Add to dashboard Cite

COVID-19 has sent a shockwave into society and sport. As result of this, sport and football resuming without spectators-fans or supporters, has brought a number of financial issues that has threatened the sustainability and future of many clubs. This commentary unpicks what has happened and some of the tensions, decision-making and consequences surrounding the return of spectators. The commentary presents the case that spectators are key to the survival of football clubs and that the United Kingdom Government must reverse their decision to not let spectators return. Now more than ever, these words hold substance, meaning and truly matter to clubs and their networked communities, "Football without fans is nothing".

show abstract

Challenging parachute payments and unmasking English football’s finances

Cited by 12 publications

References 9 publications

Too big to fail? Accounting for predictions of financial distress in English professional football clubs

Too big to fail? Accounting for predictions of financial distress in English professional football clubs

Covid-19 Pandemisi Sırasında Stratejik Yönetim Literatüründe Neler Söylendi?

COVID-19: the return of football fans

Contact Info

Product

Resources

About