Organisational efficiency of national football leagues in Europe

Terrien, Mickael; Andreff, Wladimir

doi:10.1080/16184742.2019.1598455

Cited by 29 publications

(30 citation statements)

References 74 publications

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“…The two explanations presented above are not mutually exclusive and can coexist (see, Terrien et al, 2017). Moreover, their relative weight may vary from league to league (see, Terrien & Andreff, 2020). However, given the nature of FFP, it seems that UEFA believes the main driver of the poor financial performance is the former explanation.…”

Section: Negative Shocksmentioning

confidence: 99%

Has UEFA’s financial fair play regulation increased football clubs’ profitability?

Ahtiainen

Jarva

2020

European Sport Management Quarterly

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Research question: In response to the low profitability of European football clubs, in 2010, UEFA established its Financial Fair Play regulation (FFP) to encourage clubs not to spend more than they earn. We examine whether FFP's break-even rule has increased the profitability of football clubs. Research methods: : We use data from the top five European football leagues (those of England, France, Germany, Italy, and Spain) over the period 2008-2016. Our sample includes 1,094 club-year observations (139 different clubs). Earnings before interest and taxes (EBIT) and profit before tax (PBT) margins are used as profitability measures. The impact of FFP is estimated using the Generalized Estimation Equations (GEE), logistic regressions, and fixed effects OLS models. We control for both domestic and European competition success, leverage, club size, and country/club fixed effects. Results and Findings: In the pre-FFP period, roughly 70 percent of observations are losses, whereas in the post-FFP period, roughly 60 percent of observations are losses. However, the estimated positive effect is significant only in Spain, while for England and Germany we find weak evidence. We cannot rule out that the observed improvement in performance is simply caused by the recovery from the financial crisis. The effect of FFP is insignificant in France and Italy. Implications: The effect of FFP on clubs' profitability has been at best modest. We call upon UEFA and its member associations and leagues to expand their efforts to enforce the break-even rule or to reassess the efficiency of current FFP requirements.

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Section: Negative Shocksmentioning

confidence: 99%

Has UEFA’s financial fair play regulation increased football clubs’ profitability?

Ahtiainen

Jarva

2020

European Sport Management Quarterly

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“…This is supported by Paché and N'Goala (2011) who argue (based on the 2009 DNCG report) that without such trading strategies, French clubs would suffer from larger deficits, a reason being that they generate less revenues from sponsoring and matchday compared to the Big 4 leagues (England, Germany, Italy and Spain). Intra group sales could be a mean to compete economically with its rivals but also sporting cooperation to retain talent in the domestic league, which can enhance its attractiveness (Madden, 2011;Terrien & Andreff, 2020;Terrien et al, 2016), especially if the player is a superstar (Lucifora & Simmons, 2003). Purchases extra (i.e.…”

Section: Player Transaction Variablesmentioning

confidence: 99%

Determinants of coopetition and contingency of strategic choices: the case of professional football clubs in France

Feuillet

Terrien

Scelles

et al. 2020

European Sport Management Quarterly

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Research question:The research aims to identify the determinants of 'coopetitive' strategies compared to more competitive or cooperative ones, while examining the contingency of strategic choices to strategic groups. The focus is on French professional football over the 2006-2017 period. The contribution to the literature comes from using strategic groups and breaking down specific characteristics of player transactions in this industry. Research methods:The methodology is based on an exploratory statistical analysis composed by cluster analysis. First, a Pearson's principal component analysis (PCA) is conducted, before using K-means classification. Results and Findings:Results provide empirical evidence for a high contingency of strategic choices. The taxonomy found is closely related to the economic, financial and sporting characteristics of a club. Belonging to a specific class highly influences the strategy a club can implement. In addition, the diversity of club behaviours in the league are highlighted.Implications: Our findings bring relevant information for practitioners about their strategies and the managerial implications of a potential reform on player transactions between teams. Indeed, FIFA is working on a reform to limit the number of outgoing loans that a team can use and better control the transfer system.

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“…In the past, several studies were conducted on competitive balance (CB) in the big five [5,[27][28][29], and CB was frequently emphasized as a key parameter for the sustainability of team sports leagues [30][31][32][33][34][35][36]. But CB does not look at the sustainability of the sporting competition or its structure.…”

Section: Literature Reviewmentioning

confidence: 99%

A Central Element of Europe’s Football Ecosystem: Competitive Intensity in the “Big Five”

2021

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This study perceives professional European football as one of the most relevant event-related entrepreneurial ecosystems (EEs) worldwide. It also identifies a healthy sporting competition in the five most popular European football leagues (Spain, England, Germany, Italy, and France), the “big five,” as a key pillar for the functioning of this ecosystem. By applying a quantitative approach, competitive intensity (CI) is measured for all big five leagues for 21 seasons (1998/99 to 2018/19). The chosen method does not only convey an overall indication of the competitive health of the entire league but also provides detailed information on the four important sub-competitions (championship race, qualification for Champions League or Europa League, and the fight against relegation). In all five leagues, seasonal CI tends to decrease over time, and especially over the last decade. The main reason is a decline in the intensity of the championship race while all other sub-competitions show relatively robust CI values. Overall, it can be concluded that the competitive health of the big five is intact, but the dwindling CI of the championship races can harm the EE of professional European football in the long run. Accordingly, it should be closely monitored in the future.

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Organisational efficiency of national football leagues in Europe

Cited by 29 publications

References 74 publications

Has UEFA’s financial fair play regulation increased football clubs’ profitability?

Has UEFA’s financial fair play regulation increased football clubs’ profitability?

Determinants of coopetition and contingency of strategic choices: the case of professional football clubs in France

A Central Element of Europe’s Football Ecosystem: Competitive Intensity in the “Big Five”

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