scholarly journals Transparency and Accountability in Sports: Measuring the Social and Financial Performance of Spanish Professional Football

2021 ◽  
Vol 13 (15) ◽  
pp. 8663
Author(s):  
Rudemarlyn Urdaneta ◽  
Juan C. Guevara-Pérez ◽  
Fernando Llena-Macarulla ◽  
José M. Moneva
Keyword(s):  
Financial Performance ◽  
Fair Play ◽  
Professional Football ◽  
Financial Fair Play ◽  
Football Clubs ◽  
The Social ◽  
European Football ◽  
The One ◽  
The Impact ◽  
Transparency And Accountability

This study reviews the impact of the Spanish Transparency Law (TL) 19/2013 and the Union of European Football Associations’ (UEFA) Financial Fair Play (FFP) regulations, on the transparency and accountability of Spanish professional football clubs, and examines the influence of financial performance on the transparency of Spanish football clubs. The study uses a Panel Data methodology (FGLS) to compare the international transparency index for football clubs (INFUT) with the criteria of UEFA’s FFP as a measure of the social and financial performance, respectively, on a sample of 28 Spanish professional teams of first and second division during the periods of 2015, 2016, and 2019. The study reveals that the implementation of TL 19/2013 and UEFA’s FFP has improved the transparency and accountability of clubs. On the one hand, the TL has facilitated access to financial information, and, on the other, the FFP regulations have contributed to improving the balance and financial viability of the clubs. The study also reveals that financial performance directly influences the transparency of clubs.

scholarly journals The Impact of Union of European Football Associations (UEFA) Financial Fair Play Regulation on Audit Fees: Evidence from Spanish Football

2018 ◽  
Vol 6 (4) ◽  
pp. 92 ◽  
Author(s):  
Mercedes Mareque ◽  
Angel Barajas ◽  
Francisco Lopez-Corrales
Keyword(s):  
Audit Fees ◽  
Fair Play ◽  
Financial Fair Play ◽  
Big 4 ◽  
Football Clubs ◽  
Panel Data Regression ◽  
Data Regression ◽  
European Football ◽  
Audit Reports ◽  
The Impact

This paper analyzes whether the Financial Fair Play (FFP) regulations set by Union of European Football Associations (UEFA) have influenced the auditing fees charged to football clubs. In addition, it explores the determinants of audit fees. We used a two-sample t-test with equal variances to determine whether differences are present. After this, we carried out a panel data regression with the clubs fix effect to estimate the determinants of audit fees in football clubs. Our findings revealed an increase of audit fees after the implementation of FFP regulations. On top of that, audit fees were explained by the presence of foreign investors if the audit firm was one of the Big 4 and if the auditor was a woman. The regulation change has had an impact on the audit fees charged by auditors for their services. However, this increase may be compensated over future years given the improving financial situation of clubs; therefore, the auditors’ risk diminishes and subsequent audit fees may be reduced. UEFA should monitor audit fees as well as the quality of the audit reports, which have become crucial to obtaining the license to participate in UEFA competitions.

scholarly journals Analysis of The Implementation of UEFA Financial Fair Play: A Case Study on Arsenal and Machester United Football Club

2014 ◽  
Vol 5 (1) ◽  
pp. 123 ◽  
Author(s):  
Sendy Sendy ◽  
Gatot Soepriyanto ◽  
Nuraini Sari
Keyword(s):  
Financial Performance ◽  
Financial Statements ◽  
Financial Ratios ◽  
Fair Play ◽  
Football Club ◽  
Financial Fair Play ◽  
Football Clubs ◽  
European Football

This study aims to analyze the implementation of UEFA Financial Fair Play (FFP) to European football clubs. Research is conducted based on Arsenal and Manchester United football clubs financial statements for 2010-2012. The study uses financial simulation to test whether the two England-based club are able to meet the UEFA FFP rules. Analyses were also conducted on the financial performance ratios of both clubs and their effects on the implementation of the UEFA FFP. The result is the two clubs can meet the standard provisions for the implementation of UEFA FFP. In the assessment of financial performance, Arsenal have a slightly better financial ratios than Manchester United. Performance aspects of profitability and solvency became an issue in the implementation of UEFA's FFP, related with debt holdings and high salaries that owned by both clubs.

Financial fair play in football - social program

2020 ◽  
pp. 112-119
Author(s):  
О.В. Жукова
Keyword(s):  
Social Program ◽  
Social Solidarity ◽  
Financial Policy ◽  
Fair Play ◽  
Financial Fair Play ◽  
Football Clubs ◽  
The Social ◽  
Rules And Principles ◽  
Alternative Sources ◽  
The One

Футбольным клубам Российской Премьер-Лиги (РПЛ), которые обязаны выполнять правила и критерии финансового «фейр-плей» (ФФП), предстоит серьёзная перестройка финансовой политики, так как отказываться от социальной (солидарной) программы поддержки УЕФА спортивных футбольных школ не выгодно и не этично. Это чревато штрафами, не допуском к кубковым сезонам УЕФА и отрицательно влияет на имидж клубов. Нужна целевая программа клубов РПЛ по развитию альтернативных источников доходов с одной стороны, с другой - жесткий национальный контроль соблюдения клубами РПЛ правил и принципов ФФП. Football clubs of the Russian Premier League (RPL), which are required to comply with the rules and criteria of the financial «fair - play» (FFP), will have a serious restructuring of financial policy, as it is not profitable or ethical to refuse the social (solidarity) program of support of UEFA sports football schools. This is fraught with fines, not being allowed to participate in UEFA Cup seasons, and negatively affects the image of clubs. We need a targeted program of RPL clubs to develop alternative sources of income on the one hand, on the other - strict national control of compliance by RPL clubs with the rules and principles of the FFP.

Does Financial Fair Play Matter? The Real Effects of UEFA Regulation for European Football Clubs

2019 ◽  
Author(s):  
Ariela Caglio ◽  
Sébastien Laffitte ◽  
Donato Masciandaro ◽  
Gianmarco I.P. Ottaviano
Keyword(s):  
Fair Play ◽  
The Real ◽  
Real Effects ◽  
Financial Fair Play ◽  
Football Clubs ◽  
European Football

scholarly journals FINANCIAL AND ECONOMIC ASPECTS OF PROFESSIONAL FOOTBALL INDUSTRY: TRENDS ANALYSIS AND DEVELOPMENT PROSPECTS

2021 ◽  
Vol 1 (36) ◽  
pp. 471-480
Author(s):  
V. Reikin
Keyword(s):  
Annual Reports ◽  
Professional Football ◽  
Economic Aspects ◽  
Academic Field ◽  
Current Trends ◽  
Football Clubs ◽  
Theoretical Generalization ◽  
European Football ◽  
Football Industry ◽  
The Impact

The purpose of the study is the analysis of financial and economic aspects and assessment of current trends and prospects for the development of professional football industry as an independent academic field. In this article the following general scientific and applied methods were used: analysis and comparison — to determine the main trends in the development of top professional football clubs in the context of globalization; generalization — to establish the influence of institutional factors on the economic results of football clubs activity; expert assessments — to determine the market value of players in the global transfer market; abstract and logical methods — for theoretical generalization of the obtained results, forecasting the prospects for the development of European professional football and formulating conclusions of the study.  The article deals with the analysis of financial and economic results of  European football top clubs functioning in the pre-crisis period (before COVID-19). The author emphasizes the dualistic origins of modern professional football, which combines sports and commercial components. It is analyzed the impact of «Bosman case» and the rules of «financial fair play» on the professional football industry development in the context of globalization. The sources and structure of football top clubs income are also analyzed. The main focus is on European football, where current trends are most clearly manifested. The source of information was the annual reports of audit firms, specialized analytical laboratories and FIFA data. As a result of globalization processes, the author predicts the creation of full-fledged «SuperLeague» championship of top clubs with the greatest financial opportunities, as well as the appearence of polycentrism phenomenon in the world football industry. The forecast scenarios of  football industry perspectives, formulated by the author, to substantiate the financial and economic aspects of clubs and players transfer market functioning, can be used in practice to assess the potential and formulate strategies for professional football leagues and clubs.

scholarly journals How the UEFA Financial Fair Play regulations affect football clubs’ priorities and leagues’ competitive balance?

2020 ◽  
Vol 9 (2) ◽  
pp. 119-142
Author(s):  
Pedro Garcia-del-Barrio ◽  
Giambattista Rossi
Keyword(s):  
Financial Stability ◽  
Structural Changes ◽  
Theoretical Description ◽  
Fair Play ◽  
Competitive Balance ◽  
Data Set ◽  
Legal Reforms ◽  
Financial Fair Play ◽  
Football Clubs ◽  
European Football

Institutional and legal reforms applied in the context of sports competitions often provoke structural changes that can be empirically investigated. Using a data set of 560 observations (20 teams per season, from 2009/10 to 2015/16, of teams playing in the Premier League, La Liga, Serie A and Ligue 1), this paper examines how the UEFA Financial Fair Play (FFP) regulations may have altered the football clubs’ decisions concerning their sport and financial priorities. Moreover, based on a simple theoretical description, the paper shows that the increasing financial stability promoted by the FFP rules might actually imply – as an undesired side effect – a declined competitive balance affecting the European football leagues. Finally, the paper discusses some policy issues and recommendations.

scholarly journals The Impact of UEFA Financial Fair Play Regulation on Audit Fees: Evidence from Spanish Football

2018 ◽  
Author(s):  
Mercedes Mareque ◽  
Angel Barajas ◽  
Francisco Lopez-Corrales
Keyword(s):  
Audit Fees ◽  
Fair Play ◽  
Financial Fair Play ◽  
Football Clubs ◽  
Panel Data Regression ◽  
Data Regression ◽  
Regulation Change ◽  
Audit Reports ◽  
The Impact

This paper analyzes if the Financial Fair Play (FFP) regulations set by UEFA have influenced the auditing fees charged to the football clubs. In addition, it explores the determinants of audit fees. We use a two-sample t test with equal variances to determine whether differences are present. After this, we carry out a panel data regression with clubs fix effect to estimate the determinants of audit fees in football clubs. Our findings reveal an increase of audit fees after the implementation of FFP regulations. On top of that, audit fees are explained by the presence of foreign investors if the audit firm is one of the Big4 and if the auditor is a woman. The regulation change has an impact on the audit fees charged by auditors for their services. However, this increase can be compensated across future years given the improving financial situation of clubs; therefore, the auditors’ risk diminishes and subsequent audit fees may be reduced. UEFA should monitor audit fees as well as the quality of the audit reports, which have become crucial to obtaining the license to participate in UEFA competitions.

scholarly journals Is The Sport Management Course Curriculum Compatible With Football Governing Institutions?

2019 ◽  
Vol 7 (6) ◽  
pp. 42
Author(s):  
Akın Çelik
Keyword(s):  
Financial Stability ◽  
Sport Management ◽  
Fair Play ◽  
Sports Facilities ◽  
Sports Management ◽  
Financial Fair Play ◽  
Football Clubs ◽  
European Football ◽  
The Government ◽  
Break Even Point

Sport is becoming a global phenomenon. Moreover, it has been one of the major sources of income for the government in different countries. Therefore, sport management education is becoming increasingly important in the management of sports. Countries that spend more on the development of sports facilities have been associated with huge improvements in the sports industry. Similarly, clubs that spend more on acquiring new talents in the industry and availing sports facilities have been associated with higher performance. This led the European football clubs in the spending more than they earn so as to acquire the services of the best talents and avail the best sports facilities so as to perform better. Therefore UEFA (Union of European Football Associations) launched its financial fair play regulations. UEFA financial fair play regulations were introduced to prevent the European football clubs from overspending. This situation affects the education curriculum of the sports management departments in universities. The regulations have compelled the clubs to spend at the break-even point. This has led to the improvement in brand value, increased sponsors, and making decisions that do not lead the clubs to overspend. As a result, the clubs have grown economically and achieved higher financial stability. This research explores the adaptation of the sport management curriculum to these new situations.

Ownership structure and financial performance in European football

2017 ◽  
Vol 17 (3) ◽  
pp. 511-523 ◽  
Author(s):  
Isabel Acero ◽  
Raúl Serrano ◽  
Panagiotis Dimitropoulos
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Ownership Structure ◽  
Boards Of Directors ◽  
Good Practice ◽  
Content Type ◽  
Football Clubs ◽  
Governance Practices ◽  
European Football ◽  
The Impact

Purpose This paper aims to analyse the relationship between ownership structure and financial performance in the five major European football leagues from 2007-2008 to 2012-2013 and examine the impact of the financial fair play (FFP) regulation. Design/methodology/approach The sample used comprises 94 teams that participated in the major European competitions: German Bundesliga, Ligue 1 of France, Spanish Liga, English Premier League and the Italian Serie A. The estimation technique used is panel-corrected standard errors. Findings The results confirm an inverted U-shaped curve relationship between ownership structure and financial performance as a consequence of both monitoring and expropriation effects. Moreover, the results show that after FFP regulation, the monitoring effect disappears and only the expropriation effect remains. Research limitations/implications The lack of transparency of the information provided by some teams has limited the sample size. Practical implications One of the main issues that the various regulating bodies of the industry should address is the introduction of a code of good practice, not only for aspects related to the transparency of financial information but also to require greater transparency in the information concerning corporate governance. Social implications Regulating bodies could also consider other additional control instruments based on corporate governance, such as for example, corporate governance practices, corporate governance codes, greater transparency, control of the boards of directors, etc. Originality/value This study tries to provide direct evidence of the impact of large majority investors in the clubs and FFP regulation on the financial performance of football clubs.

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