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This study explores the motivations underlying the European Super League (SL) breakaway attempt. While institutional settings bind football to tradition, investors conceive football companies as an opportunity to diversify their investments in a fast-growing technological industry. The study investigates the market structure and identifies the reasons behind the European football crisis, proposing to modify the role of Union of European Football Associations (UEFA) in the European football market.

After summarizing the unusual features of the European football market, the article displays the agents involved and their interrelations. Modeling the market facilitates picturing the misalignment of targets of regulatory bodies and football clubs. It also helps visualize the potential consequences of the SL coup on the market.

The market does not allow football companies to monetize their business and compete with other entertainment sectors. Only a radical change in the balance of power between clubs and self-interested institutional settings can settle this situation. Indeed, this relation leads to market inefficiency because the two most critical clubs' financial problems (the high dependence on broadcasting revenues and the uncontrolled expenditures on players' salaries) are linked to the same issue: the governing bodies strongly influence the profit equation by holding control of media rights and incentivizing clubs to overspend to win both on-field and off-field.

This study is the first to assess the football business market using an evolutionary approach to address its problems. It offers a visualizing tool to understand the market and proposes an alternative solution for solving the football market crisis.

The purpose of this paper is to argue for the necessity of regulating European club football financially, in order to create a fair structure of sporting competition.

By deploying the soft budget constraint approach – originally developed by Hungarian Economist János Kornai in order to understand (public) business behavior in socialist and post‐socialist economies – and combining it with empirical analysis, the paper develops an understanding of why the majority of European top league clubs are loss‐makers and why regulation is needed. The paper rests on its application of the soft budget constraint approach to build its argument and uses existing empirical research in order to support it within the field of European professional football.

The paper finds substantial evidence of soft budget constraints in professional football clubs, and argues that softness punishes the few financially well‐managed clubs in sporting terms for balancing their books.

From a theoretical point of view, the new perspective of soft budget constraints takes political, cultural and emotional aspects into account in order to understand economic behavior among professional team sports clubs. This gives promising new insights into the discipline of sports economics and sports management.

The paper's findings demand action to be taken to secure financial fair play in order to deal with issues of equal sporting competition. It argues that this must be done through a central regulation scheme covering all European leagues, thus endorsing the new UEFA financial fair play program. At the same time, however, the paper recognizes the problems in implementing the program efficiently.

The originality and value of the paper is its application of a new theoretical approach that clarifies the problems of European professional football and the reasons why regulatory solutions are necessary to harden the budget constraints.

The paper analyzes the effects of financial fair play (FFP) in the competitive balance of European football industry throughout a long-term perspective.

The authors analyze the evolution of the competitive balance in the European football industry through a time-series analysis from season 1992/93 to 2018/19.

Results indicate an industry by nature dominated by a few clubs showing a general stationary behavior. FFP has had very little impact in local competitions. Just in some leagues, such as the Spanish, German, and French leagues, we can observe an increase in the imbalance in some indicators, but these results are not very robust. The improvement on the financial situation happens especially in a small group of firms that coincide with the big leagues with a strong European market orientation and strict local financial control standards.

Although the study covered 17 European Leagues, there are several leagues not accounted for and thus results should be generalized with caution.

The authors observe heterogeneity of the results of FFP in the competitive balance, associated to how the standard has been implemented in each market. This opens opportunities to study and deepen the local codes and their influence, especially in the recommendations of future financial control standards.

The authors’ main contribution to the literature is to examine the impact of the FFP rules in the competitive balance utilizing a very broad study of 17 European markets with a rich and unusual overview and long-term perspective.

The purpose of this study is to investigate the Union of European Football Associations’s Financial Fair Play (FFP) Regulations in the context of the European football industry. This study seeks to explore whether these regulations are perceived by member organisations as contributing to the creation of a “poverty trap”. To do so, this study turns towards what are traditionally perceived as smaller clubs operating in smaller member associations and, in doing so, explores whether the regulations limiting benefactor payments are suitable for smaller leagues.

In-depth semi-structured interviews were conducted with key individuals involved in the management of Scottish football clubs. The Scottish context was chosen because of the disparity in revenues amongst competing teams and the limited broadcasting revenues achieved in comparison to some other European member associations.

FFP Regulations are perceived to be an effective tool for monitoring clubs and ensuring financial stability. However, the findings suggest that participants believe that these regulations consolidate the financial position of larger teams who rely on broadcasting and extant brand power for revenue generation. Further, smaller leagues demonstrate a lesser reliance on benefactor payments, and therefore, the restriction on benefactor payments inherent within FFP Regulations is posited by participants as holding little consequence and/or relevance within the Scottish football context.

Most prior studies on FFP Regulations have focused on generating quantitative insight into the application of FFP Regulations in large, resource-rich European football leagues. Through a qualitative approach, this study provides nascent exploratory insight into FFP Regulations from the perspective of smaller leagues.

The aims of the research are twofold: (1) exploring whether football club stocks can be considered an asset class of their own; (2) investigating whether football stocks enable well-diversified investors to achieve more efficient risk-return combinations.

Using efficient frontier optimization, a base portfolio, with standard stocks and bonds, and a corresponding enhanced portfolio, which includes football stocks in the investment opportunity set, are defined. This procedure is applied to four portfolio composition rules. Pairwise comparisons of portfolio Sharpe ratios include a test for statistical significance.

The results indicate a low correlation of football stocks and standard stocks; thus, football stocks could be considered an asset class of their own. Nevertheless, the addition of football stocks to a well-diversified portfolio does not improve its risk-return efficiency because the weak performance of football stocks eliminates their advantage of low correlation.

This study contributes to the evidence that investments in football are different from ‘ordinary’ investments and need further research, particularly into market participants and their investment motives.

Football stocks are not attractive to pure financial investors. Thus, football clubs need to know more about which side benefits are appreciated by which kind of investor and how much it costs to produce these side benefits.

To the best of authors’ knowledge, this is the first study to analyse the risk-return efficiency of football stocks from the perspective of a pure financial investor, i.e. an investor in football stocks who does not earn side benefits, such as strategic investors or fan investors.

This paper aims to propose an analysis of financial regulation practices, identified thanks to an extensive benchmark carried out in eight European professional sports leagues.

Between 1970 and 2018, 81 French football clubs went bankrupt. The paper proposes an analysis of financial regulation practices in eight European professional sports leagues to enhance the prevention of bankruptcy of French football clubs. Three research questions are addressed: What are the financial and accounting disclosure practices in the main professional leagues? What assessment tools are employed to evaluate the financial risk and budgetary feasibility? What financial support measures exist for clubs and how are insolvency proceedings initiated by clubs? To identify financial regulation practices in professional sport, a selection of leagues was made based on their economic importance, specific regulatory tools used, and their approach to financial difficulties and the handling of insolvency proceedings.

Through an examination of financial regulation practices in other leagues, three main findings are highlighted: The significance of required financial documents and deadlines varies depending on the competition organizer; some leagues utilize ratio-based assessments rather than relying solely on opinions from financial oversight bodies; certain leagues have established assistance processes for troubled clubs as opposed to punitive measures resulting in administrative regulations.

This study proposes new financial regulation modalities to prevent the bankruptcy of French football clubs. Firstly, a reform management control is suggested. Secondly, the engagement of stakeholders in bankruptcy prevention is recommended. Lastly, the implementation of a dedicated policy to support clubs facing difficulties is proposed.

The French football federation and the professional league are important actors in the European football. Many bankruptcies are noted in these championships and since the COVID crisis, the financial situation of the clubs has deteriorated, pointing to a strong risk of bankruptcy in the coming years.

The purpose of this paper is to examine competitive balance in European football leagues before and after the inception of Financial Fair Play (FFP) regulations by Union of European Football Associations in 2011, designed to bring about financial stability and improve competitive balance in the European game.

The research focuses on the top division football leagues in England (English Premier League), Germany (Bundesliga), France (Ligue 1), Italy (Serie A) and Spain (La Liga). The paper is organised into two distinct time periods: pre-FFP, comprising the six seasons between 2005/2006 and 2010/2011; and post-FFP, comprising the six seasons between 2011/2012 and 2016/2017. The paper uses recognised measures of concentration and dominance to measure competitive balance.

The results show a statistically significant decline in competitive balance post-FFP for leagues in Spain, Germany and France but not for England and Italy. Furthermore, the results report significantly higher levels of concentration and dominance by a select number of clubs in Germany.

The paper is one of the first to analyse competitive balance in this way both pre- and post-FFP. Whilst the paper cannot demonstrate a causal link between FFP and competitive balance, there are strong indications that competitive balance has been adversely affected (for some leagues) since the regulations have been imposed. To that end, the paper argues that FFP has had “unintended consequences” in respect of competitive balance.

The purpose of this paper is to investigate how professional football clubs from the English Premier League, German Bundesliga and Spanish Primera División use digital media to expand their international reach in emerging football markets (EFM) outside of Europe. Based on the EPRG framework and Rugman’s home-region hypothesis, the aim is to broaden the perspective where “sports go global” for a further understanding of actors’ international orientation in the digital sphere.

The study is based on data from desk research and a qualitative survey, comprising information on international digital media activities of 58 European clubs. Cluster analysis is used to identify different international orientations with regard to digital media activities.

The data provide evidence that clubs differ strongly in their orientations towards EFM. While some global players that provide digital media content in several EFM languages and attract a large share of Facebook followers from EFM exist, other clubs focus on their home region. League-specific differences become apparent.

This study determines the international online orientations of European football clubs by combining two previously separated research streams in football management studies: internationalisation and digital media activities. Most clubs with a strong EFM fan base choose polycentric, multi-language digital media strategies, followed by geocentric, standardised approaches. By offering a novel angle on internationalisation in professional football, this study contributes towards optimising clubs’ international online strategies for EFM, which are markets that promise high growth rates.

Consumers are increasingly looking beyond products, and are expressing concern for the respect of societal values. This paper analyses how football organisations and governing bodies in Europe are adapting their marketing strategies to reflect these concerns. 'Ethical charters' or 'ethical codes of behaviour' need to be redefined under close scrutiny from shareholders and stakeholders. Whether it is a deliberate decision or a forced change, football organisations must respond to simultaneous commercial and political pressures.

This article explores the value creation process from player sales in football to understand if the related capital gains correspond to significant increases in the stock value of selling companies. In addition, it aims to detect any potential drivers for higher (or slower) abnormal stock returns.

The authors analyze all the capital gains of the Italian and Portuguese listed football companies (the only ones for which, based on their annual reports, it was possible to trace the net book value for each player sold and, consequently, if any, the related capital gain) from 2012 to 2020 and use event study analysis to calculate the abnormal returns of the football companies' stocks. Moreover, the authors use a multiple linear regression model to identify the factors affecting investors' reactions and value creation process intensity.

The results show that, on average, the capital gains from player transfers in football are positive income components and produce statistically significant higher abnormal returns. In addition, the authors identified some relevant drivers related to their intensity which could guide the choices of corporate executives regarding future disposals of the multi-year performance rights of players in the roster.

This study considers only Italian and Portuguese football listed companies. It would be helpful to consider some of the companies from other countries which are also outstanding from the sports perspective, but, in practice, it was not possible due to the impossibility to trace the net book value of the single footballers sold in those clubs' public financial disclosure.

The value relevance of the capital gains from player trading activities should increase their importance, creating cascade effects on several activities generating value for football clubs (youth sector management, player scouting, technical improvement of the players). In addition, financial data show that the capital gains from player transfers are a basic income of European football clubs nowadays. Their executives consider these operations recurrent and continually search for more valuable transfers. Hence, it is reasonable to think that they (will) choose the players to sell considering both sports and financial aspects.

To the best of the authors' knowledge, this is the first study exploring the effects of capital gains from player trading activities on professional football clubs' stock value. The results obtained are even more relevant if one considers the importance these income components have in the profit formula of professional football clubs nowadays, also because of the negative repercussions caused by the recent COVID-19 pandemic.