Walk the Talk: Financial Fairness in European Club Football

Schubert, Mathias; Frías, Francisco Javier López

doi:10.1080/17511321.2017.1371790

Cited by 11 publications

(6 citation statements)

References 26 publications

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“…There has been a proliferation of academic articles published since the inception of FFP from various disciplines. In a philosophical essay on FFP, Schubert and Lopez (2019, p. 36) stated that “ contributions on FFP can be grouped in economic (or finance), socio-political, and juridical perspectives, while the first category clearly dominates ”. Within this first category, much of the literature covered sporting and economic issues, two closely related areas in the world of professional sport.…”

Section: Theoretical Background: Ffp As a Financial Tool For Mitigati...mentioning

confidence: 99%

The effectiveness of UEFA Financial Fair Play: evidence from England and France, 2008–2018

Avril

Dermit-Richard

Plumley

et al. 2021

SBM

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PurposeThis paper analyses the effectiveness of UEFA's Financial Fair Play (FFP) under the break-even requirement.Design/methodology/approachData was collected from English and French football clubs competing in the English Premier League (EPL) and in Ligue 1 (L1) for the financial years 2008–2018. Our sample includes 395 club-year observations. Relevant statistical tests have been conducted with the aim of analysing the effects of pre (2008–2012) and post (2012–2018) FFP enforcement under both profitability and cost-efficiency assumptions.FindingsIn the EPL, an increase is observed in clubs' profitability through both operating and break-even results. In L1, this improvement is only significant for break-even results of clubs not participating regularly in European competitions (non Euro-oriented clubs). Player expenditures, measured through two wage-to-revenue ratios excluding trading activity for one and including it for the other, have significantly decreased in the EPL except for the Euro-oriented clubs for this latter. Conversely, in L1, this decrease is only significant in both wage-to-revenue ratios for non Euro-oriented clubs and for the whole sample when trading is included.Practical implicationsIn addition to evidencing contrasting results in FFP effectiveness across countries, our results suggest it is not the sole cause of such an improvement in clubs' finances. We suggest that UEFA should pursue its efforts to scrutinise the level of clubs' player expenditures and that there is a need for a wider look at the FFP regulations.Originality/valueThis article provides further contribution to empirical studies on FFP effectiveness that have often been focused on a single country.

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Section: Theoretical Background: Ffp As a Financial Tool For Mitigati...mentioning

confidence: 99%

The effectiveness of UEFA Financial Fair Play: evidence from England and France, 2008–2018

Avril

Dermit-Richard

Plumley

et al. 2021

SBM

View full text Add to dashboard Cite

show abstract

“…Leagues and UEFA use different methods, such as enforcing financial fair play regulations (Schubert and Lopez Frias, 2019) to ensure the financial sustainability (Dunbar and Middleton, 2022) of football clubs. According to the regulations of financial fair play, clubs cannot spend more than their income during a certain period of time.…”

Section: Discussion and Contributionsmentioning

confidence: 99%

Economic sustainability: a solution to the financial problems of football clubs

Atghia,

Nazarian

2023

SBM

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PurposeFinancial problems of football clubs during economic crises (such as COVID-19 pandemic) highlight the necessity of achieving economic sustainability. In addition, the economic sustainability of football clubs is accepted as a principle of the development of sports business. Therefore, it is reasonable to conduct a study with the aim of examining economic sustainability in the field of sports club management.Design/methodology/approachThe present study adopted a qualitative approach to research and used semi-structured interviews in order to develop a framework for the economic sustainability of football clubs. A total of 13 members of football clubs in the Iranian premier league participated in this study.FindingsThe findings highlighted the fact that a number of factors, including media and social networks, entrepreneurship and development of club business, commercialization of the club, privatization, investment and ownership, strategic communication plan, financial management and management instability, promoted the economic sustainability of football clubs and improved their financial performance.Originality/valueThis study highlighted the importance of the changes in the structure of football clubs and the strategic plans for promoting entrepreneurship and commercialization. Moreover, it underlined the major role of the environmental and management components of football clubs in their financial sustainability.

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“…In the past, the leagues and the UEFA have already implemented several measures, such as the Financial Fair Play regulations (Schubert and Lopez Frias 2019 ), to ensure the financial stability. Should the situation become more challenging, these regulations might be extended in the coming years.…”

Section: Discussionmentioning

confidence: 99%

The sky is the limit?! Evaluating the existence of a speculative bubble in European football

et al. 2020

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In light of increasing salaries and transfer fees, the present study investigates the existence of a speculative bubble in European football. By applying the Kindleberger-Minsky model to football, we show that developments in recent years do not meet the criteria of a classic bubble. Although transfer fee spending in recent years does meet the typical pattern seen in historical bubbles, the case of football rather resembles an atypical bubble. This is because the rise in transfer fees for most clubs is largely backed by cash inflows, prompting an elevator effect for transfer fees. Typical bubbles, on the other hand, contain heavy debt-financing in the absence of respective and sustainable cash inflows. Nevertheless, despite the absence of a speculative bubble on the aggregated league level, some individual clubs seem to "live in a bubble". Furthermore, the French and especially Italian leagues should be cautious about overspending. We further discuss the main risk factors that can lead to a turning point in European football's constant revenue growth, including potential implications of a financial downturn.

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Walk the Talk: Financial Fairness in European Club Football

Cited by 11 publications

References 26 publications

The effectiveness of UEFA Financial Fair Play: evidence from England and France, 2008–2018

The effectiveness of UEFA Financial Fair Play: evidence from England and France, 2008–2018

Economic sustainability: a solution to the financial problems of football clubs

The sky is the limit?! Evaluating the existence of a speculative bubble in European football

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