European club football: why enormous revenues are not enough?

Solberg, Harry Arne; Haugen, Kjetil K.

doi:10.1080/17430430903523036

Cited by 51 publications

(48 citation statements)

References 14 publications

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“…It is indicative that when clubs underperform, supporters demand expensive transfers of players and exorbitant salaries to retain them, irrespective of whether or not the club can afford it (Solberg & Haugen, 2010). Such requirements cannot be overlooked by the club management since inaction may create negative publicity and feelings of distrust and disapproval.…”

Section: Literature Reviewmentioning

confidence: 90%

“…Such requirements cannot be overlooked by the club management since inaction may create negative publicity and feelings of distrust and disapproval. Additionally, neglecting supporter demands can reduce attendance and the revenues from media and sponsors, at least in the short run (Solberg & Haugen, 2010). Hence, maximizing performance on the field of play permeates club management rationale (Kennedy, 2013).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Club managers often utilize strong relationships with supporters and local communities to mobilize political support and secure privileged treatment from various organizations (Solberg & Haugen, 2010). In recognition of community disapproval, banks, investors, debtors and tax authorities are almost always reluctant to apply strict policies on football clubs so as to avoid confrontation with supporters (Grant, 2006).…”

Section: Literature Reviewmentioning

confidence: 99%

“…UEFA monitors the clubs' financial position and performance on the basis of the accounting information reported, requiring clubs to 'balance their books' or 'break even' (Morrow, 2013(Morrow, , 2014UEFA, 2010). Strict punishments, 2 such as fines and disqualification from European organizations and tournaments, are prescribed for deviant clubs (Solberg & Haugen, 2010). Moreover, the inability to meet the economic thresholds set by the FFPR would automatically lead to a loss of revenue, which would put the financial viability of most clubs at risk.…”

Section: Introductionmentioning

confidence: 99%

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Managing the European football industry: UEFA’s regulatory intervention and the impact on accounting quality

Dimitropoulos

Leventis

Dedoulis

2016

European Sport Management Quarterly

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Research question: European football clubs are known for an institutionalized management culture which prioritizes on-field success over financial performance. This creates an extremely competitive context within which most clubs operate, producing debts and deficits. However, in order to secure clubs' long-term financial viability, Union of European Football Association (UEFA) has introduced regulatory and monitoring processes tied to accounting data in order to assess clubs' financial performance. This study aims to determine whether UEFA's framework has an impact on clubs' management policies with regard to accounting quality. Research methods:The study employs a sample of 109 European football clubs for a seven-year period, 2008-2014 (three years before and four years after the regulatory intervention), to investigate the impact of the reform upon management practices related to accounting. Following prior literature, we employ the three most commonly used proxies of accounting quality: earnings management, conditional accounting conservatism and auditor switching. Results and findings: This study demonstrates that, at the expense of accounting quality, club management seeks to promote the image of a financially robust organization in order to secure licensing and, consequently, much needed funding from UEFA. In this manner, the dominance of a management culture which impairs financial performance is further cemented. Implications: UEFA should take into consideration that, in a financially distressed industry focused on achieving success on the field of play, the imposition of regulatory monitoring tied to accounting data inevitably leads to a loss of organizational credibility and transparency. Hence, UEFA's intervention should be accompanied by the imposition of a corporate governance framework which would aim to rearrange club management priorities by facilitating a change in institutionalized mentalities. ARTICLE HISTORY

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Section: Literature Reviewmentioning

confidence: 90%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Managing the European football industry: UEFA’s regulatory intervention and the impact on accounting quality

Dimitropoulos

Leventis

Dedoulis

2016

European Sport Management Quarterly

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“…Still, we feel that the results we have derived (even if they are not perfectly complete) warrant greater caution from sport officials when it comes to how prize functions are designed. To some extent, other research points at a similar problem - see for instance [26] and [27].…”

Section: Conclusion and Suggestions For Further Researchmentioning

confidence: 99%

The Multi-Player Performance-Enhancing Drug Game

2013

Self Cite

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This paper extends classical work on economics of doping into a multi-player game setting. Apart from being among the first papers formally formulating and analysing a multi-player doping situation, we find interesting results related to different types of Nash-equilibria (NE). Based mainly on analytic results, we claim at least two different NE structures linked to the choice of prize functions. Linear prize functions provide NEs characterised by either everyone or nobody taking drugs, while non-linear prize functions lead to qualitatively different NEs with significantly more complex predictive characteristics.

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Assessing the influence of financial fair play on sporting performance: A study of the Spanish league using a data envelopment analysis model

Calahorro‐López,

Ratkai,

Fernández‐Uclés

2024

Manage Decis Econ

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The football industry stands as an important economic sector in numerous countries, sparking scholarly discussions on the multifaceted nature of interconnected objectives and the influence of financial, accounting, and management elements on athletic performance. This discussion has gained prominence following the implementation of Financial Fair Play (FFP) regulations, which have substantially reshaped industry management practices. This study introduces two innovative models—financial and sporting—that employ data envelopment analysis (DEA) to evaluate the performance of Spanish league football clubs within the context of FFP regulations. These models illuminate a crucial aspect of sports economic theory: the balancing act between financial and sporting objectives. Moreover, our analysis explores the influence of FFP on the efficiency of the Spanish league by comparing club proximity to the best practice frontier before and after FFP implementation. Our findings uncover intriguing differentiations within the proposed models and across various club clusters, providing valuable insights into the nuanced interplay among finance, accounting, and sports management.

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European club football: why enormous revenues are not enough?

Cited by 51 publications

References 14 publications

Managing the European football industry: UEFA’s regulatory intervention and the impact on accounting quality

Managing the European football industry: UEFA’s regulatory intervention and the impact on accounting quality

The Multi-Player Performance-Enhancing Drug Game

Assessing the influence of financial fair play on sporting performance: A study of the Spanish league using a data envelopment analysis model

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