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This article examines four major Financial Fair Play (FFP) cases that have come before the Court of Arbitration for Sport (CAS). Although significant previous work has addressed FFP in European football, there is a major gap where its treatment at the CAS is concerned. In addition to creating substantial holes in the effectiveness of FFP regulations, the progression of the four cases discussed have let some of FFP's most egregious offenders avoid sanctions they would consider damaging. In considering two especially important cases, this article argues that Paris Saint-Germain and Manchester City have provided ample guidance for transforming mediocre clubs through disguised equity infusions to circumvent FFP until a sustainable revenue structure is created. For the CAS, the case line resulting in major FFP offending clubs escaping meaningful sanctions builds upon a body of anti-doping jurisprudence that has had the effect of shifting the cost-benefit analysis of rule breaking. This failure in both the FFP and CAS realms leads into a larger emergent policy reform conversation. [ABSTRACT FROM AUTHOR]

Background: The Union of European Football Association's (UEFA) Financial Fair Play (FFP) regulations are a topic of ongoing debate. This study aims to evaluate and quantify the FFP's effect on clubs' financial performance and critically review the regulatory changes introduced by the UEFA in 2022 through the new Financial Sustainability Regulations (FSR). Methods: A systematic review and meta-analysis were conducted using the Web of Science and Scopus databases up to December 31, 2023, following the Preferred Reporting Items for Systematic Reviews and Meta-Analysis (PRISMA) statement. Results: This systematic review included 22 articles; a meta-analysis was conducted on 52 financial measures derived from 20 studies of 11 articles. The meta-analysis’ main result—obtained by comparing two different financial measures (profitability versus solvency)—revealed that FFP's effect on profitability measures was significant, with a value of 0.151 (p = 0.050); however, the effect size for solvency measures was not significant, with a value of 0.049 (p = 0.639). Contributions: This systematic review revealed variability in the results of the studies analysed, reflecting contextual factors' influence, which underlines the need for a more adaptive and specific approach to clubs’ financial control policies. The meta-analysis found that the type of financial measure employed (profitability versus solvency) was a notable source of variability among the studies, as its moderating effect was significant. Consequently, the FFP exerted contrasting effects on profitability and solvency. Limitations: A significant level of heterogeneity was observed in the financial measures analysed, predominantly because of the different samples and periods across the included studies. Conclusions: This study corroborates FFP's mixed and limited impact on financial performance, highlighting the need for stricter control in European football, which aligns with the new FSR. Our study underscores aspects that future research should address to deepen knowledge of UEFA regulations' efficiency in enhancing football's financial sustainability.

It is often suggested by fans, the media, and football commentators that English players are over-valued and receive higher salaries than those of comparable players from different countries. This study examines whether the suggestion can be empirically substantiated. Using a unique database covering all of the European elite leagues, we show that there is an English player value premium of around 40% and a wage premium of 25%. Exploring the reasons for this phenomenon in a regression setting, we find that the excess valuation and salary differential can be partly justified by several factors. First, and most importantly, there is a higher value attributed and wages paid to players in the English Premier League (EPL); second, that English players are more likely to play as strikers than in other positions in EPL clubs; third, that their performance in some positions is somewhat better than the average of players from other nations; fourth, that there are fewer of them in the top European leagues, leading to a shortage in supply. There is, however, evidence that the higher valuation of English attackers and the higher salaries of English attackers and of English midfielders evades explanation by any of these groups of variables. [ABSTRACT FROM AUTHOR]

Introduction: The aim of this study was to develop a model of financial fair play for Iranian football clubs. Methods: The methodology of this research was qualitative and grounded theory Strategy. The statistical population of the study consisted of all managers, professors and researchers, legislators, player’s agents and coaches. Sampling was done theoretically and sampling continued until the theoretical adequacy and saturation. The data collection tools in this study were in-depth semi-structured interviews. Results: After analyzing and reviewing the core codes, the final 25 categories were integrated in the form of a data-based paradigm model in the form of causal, contextual, intervening, strategies and consequences, and the final research model was presented. In this model, the categories of government of Iranian clubs; weak financial knowledge of club managers; lack of strategic thinking; the weakness of the economic governance of the Federation League organization and the lack of cooperation of governing institutions for the financial independence of the football industry were considered as causal conditions. Finally, enforcing the law of fair financial play is very difficult and to some extent impossible without the cooperation of government institutions. Conclusion: According to the results of the research, the most important action of these institutions is to create a suitable platform for the implementation of a fair financial game in the league. [ABSTRACT FROM AUTHOR]

The purpose of this systematic literature review is to provide the state of the art, trends and thematic features in the field of accounting and finances of football teams applying the PRISMA guidelines. Seventy-five studies published after the Bosman Act (1995) were included from the most relevant databases: WoS and Scopus. The lines of research included in the analysis were financial performance, sport performance and legislative performance. The synthesis of studies revealed that the scientific output has evolved over time and changes have been detected both on a sporting and scientific level with the introduction of the Financial Fair Play (2012), which is changing the business model of the football industry towards more efficient financial and accounting decision making, which might help the achievement of sporting objectives. Useful policy conclusions such as valuation of intangibles, influence of results on clubs' share prices and directions for future research on football finance are also included in the paper.

Purpose: This study aims to contribute to the analysis of the impact of financial control or "financial fair play" (FFP) regulations on the financial performance of the Spanish professional football league (LaLiga) by examining the moderating role of club size. The authors argue that introducing FFP positively impacted the financial performance of small clubs but increased the economic gap between large and small clubs. Design/methodology/approach: A 12-year dataset covering 22 football clubs is used to test the hypotheses. Panel regression models are estimated for eight measures of financial performance indicators, comprising three financial dimensions: profitability, liquidity and solvency. The Gini index is applied to clubs' economic and sports variables to determine the degree of economic imbalance between the largest and smallest clubs. Findings: The results show that FFP significantly and positively impacted the profitability of small clubs and the solvency of medium-sized clubs but has not impacted the largest clubs' financial performance. After these regulations, economic inequality in Spanish LaLiga increased. Originality/value: The authors find evidence that club size moderates the effect of FFP on financial performance. The moderating role of club size may explain the mixed results found in previous research. The authors' findings contribute to improving the literature on the impact of FFP on the financial performance of European football clubs. [ABSTRACT FROM AUTHOR]

Research question: We consider player trading as one of the distinctive features of football clubs' business models and how these models have been influenced since the implementation of Financial Fair Play (FFP). Considering the Italian financial and economic context in the football sector, we investigate whether Serie A football clubs adopt earnings manipulation as a result of trading players' economic rights. Research methods: The empirical analysis includes the football clubs competing in the Italian Serie A from 2005 to 2018. Using an unbalanced panel dataset composed of 275 club-year observations (38 different clubs), our estimations are run by using fixed effects OLS models. Clubs' net capital income from sales of football players is used as a proxy of earning manipulation. We control for clubs' football performance, size and reputation. and Findings: By applying Bartov's model based on asset sales, our results confirm the adoption of asset manipulation behaviours in the football industry, wherein players' economic rights sales are a preponderant financial item affecting economic performance. Specifically, net income from trading players is significant and positively linked with Serie A clubs' profitability, while leverage is significant after the introduction of FFP and especially for the most prominent Serie A clubs. Implications: Our results confirm that Italian Serie A has been chronically dependent on player trading to maintain their financial sustainability. UEFA's regulations could be assessed and modified to enable them to prevent and reveal the real activities and dynamics behind the player transfer market (profit smoothing behaviours). [ABSTRACT FROM AUTHOR]

This paper analyses the effectiveness of the financial control system implemented by the Spanish professional football League in 2015 as a tool to improve the governance of clubs in the first and second divisions as well as its probable impact on competition. Classic financial ratios are used to analyse the financial situation of the clubs both before and after the implementation of the Regulation, as well as during the first season affected by the COVID-19 pandemic. Next, the Herfindahl index is calculated to measure the concentration in the distribution of the main funding sources and is incorporated as a dependent variable in a regression model. Although a cause–effect relationship is not certain, the results suggest that the economic control measures imposed by LFP have contributed to improving the financial situation of Spanish football in the short term, but may promote imbalances between clubs that undermine the sustainability of the current management model and, therefore, of the competition system. Unlike in other sectors, the football business requires more competition to maximise profits. In this context, it would be advisable to reach agreements between clubs to weaken the bargaining position of footballers. The paper shows the effect of the intervention of a regulatory body, in this case, LFP, in the functioning of a competitive market. [ABSTRACT FROM AUTHOR]

This paper analyses competitive balance in 24 top-division domestic football leagues in Europe before and after the implementation of UEFA's Financial Fair Play (FFP) regulations. Our analysis covers 22 seasons between 2000/01 and 2021/22 and utilises indicators of overall league concentration and dominance. Seven of the 24 leagues examined have seen a statistically significant worsening of league concentration post-FFP, fourteen leagues experienced a decline in the number of top-four finishers and thirteen saw a reduction in the number of unique title winners. The weight of evidence indicates that FFP has adversely affected competitive balance in several European football leagues. [ABSTRACT FROM AUTHOR]

This paper analyses the impact of Financial Fair Play (FFP) on clubs' finances and on the relationship between them and clubs' sporting outcomes in the Spanish league. To this end, financial ratios and accounting variables obtained from the clubs' own annual accounts, published from 2004 to 2019, are analysed, and the Mann–Whitney test is used to describe which differences are significant. The objective is threefold: firstly, we describe the financial/accounting structures of Spanish league football clubs, showing how both their financial statements and ratios have evolved after the application of this law, providing evidence of whether FFP is an adequate tool to guarantee the long-term viability and sustainability of football clubs, as intended by the UEFA. Secondly, we show the relationship between financial/accounting performance and sporting results. Thirdly, the paper looks at whether FFP has impacted the gap between the top clubs and the rest. The results show that, after the implementation of FFP, clubs' financial/accounting health has improved, and a change in their efficiency in this regard can be observed. Although FFP is a tool that achieves the objective for which it was created, the possibility that the gap between the elite clubs and the rest may be increasing should not be ignored. [ABSTRACT FROM AUTHOR]

European football has transformed over the last two decades both financially and athletically. Although the aggregate revenue generated by the European football increases, some leagues grew richer than the others. The inequality in the distribution of revenue caused the talents to accumulate in the Big 5 leagues and left the others with no chance to compete. Especially after the introduction of Financial Fair Play, teams from other leagues became in desperate need of transfer income which accelerated the accumulation of talent. This paper proposes a matrix, the Balance-Performance Matrix, for classifying leagues with respect to their transfer balance and sportive performance. As the results of the matrix illustrate, some leagues indeed became suppliers for the Big 5 and they have lost their competitive edge whereas some are still competing despite losing their best talents.

This paper analyses the effectiveness of the financial control system implemented by the Spanish professional football League in 2015 as a tool to improve the governance of clubs in the first and second divisions as well as its probable impact on competition. Classic financial ratios are used to analyse the financial situation of the clubs both before and after the implementation of the Regulation, as well as during the first season affected by the COVID-19 pandemic. Next, the Herfindahl index is calculated to measure the concentration in the distribution of the main funding sources and is incorporated as a dependent variable in a regression model. Although a cause–effect relationship is not certain, the results suggest that the economic control measures imposed by LFP have contributed to improving the financial situation of Spanish football in the short term, but may promote imbalances between clubs that undermine the sustainability of the current management model and, therefore, of the competition system. Unlike in other sectors, the football business requires more competition to maximise profits. In this context, it would be advisable to reach agreements between clubs to weaken the bargaining position of footballers. The paper shows the effect of the intervention of a regulatory body, in this case, LFP, in the functioning of a competitive market.

Soccer player registrations are accounted for as intangible assets in the financial statements of soccer clubs. This study provides a discussion about the main accounting concepts behind this type of accounting treatment for player registrations, namely the accounting definition of intangible assets and the matching principle of accounting. The article argues that the way player registrations are currently accounted for in soccer clubs' annual reports is in line with the matching principle of accounting, but the actual rules behind the transfer of player registrations do not allow them to strictly meet the accounting definition of assets. This paper aims to generate a discussion about the rules governing the transfer of player registrations. Moreover, it proposes potential changes to registration transfer rules aimed at enhancing the level of control that clubs have over their player registrations. [ABSTRACT FROM AUTHOR]

This paper analyses the impact of Financial Fair Play (FFP) on clubs’ finances and on the relationship between them and clubs’ sporting outcomes in the Spanish league. To this end, financial ratios and accounting variables obtained from the clubs’ own annual accounts, published from 2004 to 2019, are analysed, and the Mann–Whitney test is used to describe which differences are significant. The objective is threefold: firstly, we describe the financial/accounting structures of Spanish league football clubs, showing how both their financial statements and ratios have evolved after the application of this law, providing evidence of whether FFP is an adequate tool to guarantee the long-term viability and sustainability of football clubs, as intended by the UEFA. Secondly, we show the relationship between financial/accounting performance and sporting results. Thirdly, the paper looks at whether FFP has impacted the gap between the top clubs and the rest. The results show that, after the implementation of FFP, clubs’ financial/accounting health has improved, and a change in their efficiency in this regard can be observed. Although FFP is a tool that achieves the objective for which it was created, the possibility that the gap between the elite clubs and the rest may be increasing should not be ignored.

Research question: In this study we empirically test the following hypotheses regarding the impact of financial fair play (FFP) on Italian first-division clubs: 1) FFP works as a governance mechanism moderating the relation between internal governance mechanisms and wage expenditures, 2) FFP is altering the relative importance of player expenditures as drivers of sporting performance, and 3) FFP is shifting the business model of Italian clubs leading to a more efficient decision-making on player transfers. Research methods: Using 165 club-year observations from 2007 to 2017, we jointly model the determinants of wage expenditures, sporting results and financial performance via a simultaneous equation approach. The impact of FFP is estimated by interacting a dummy variable for FFP with the key explanatory variables of each model. Results and findings: Empirical results show that FFP has 1) a negative effect on the relation between wages and sporting results, 2) a positive effect on the relation between net transfer fees and sporting results, and 3) a positive effect on the relation between gains on player trading and financial performance. Implications: Overall results suggest that FFP is altering the business model of Italian clubs from an investment-focused (wage spending) to a more efficiency-driven one that is geared to make gains from player trading. Accordingly, club managers should commit to creating sustainable cycles of player transfers in order to thrive under the new regulatory environment. As for regulators, this study supports the notion that FFP restores efficient managerial incentives in football businesses, reinforcing the case for a full implementation of the regulation. [ABSTRACT FROM AUTHOR]

Copyright of Revista de Contabilidade & Controladoria is the property of Revista de Contabilidade & Controladoria RC & C and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

European football has transformed over the last two decades both financially and athletically. Although the aggregate revenue generated by the European football increases, some leagues grew richer than the others. The inequality in the distribution of revenue caused the talents to accumulate in the Big 5 leagues and left the others with no chance to compete. Especially after the introduction of Financial Fair Play, teams from other leagues became in desperate need of transfer income which accelerated the accumulation of talent. This paper proposes a matrix, the Balance-Performance Matrix, for classifying leagues with respect to their transfer balance and sportive performance. As the results of the matrix illustrate, some leagues indeed became suppliers for the Big 5 and they have lost their competitive edge whereas some are still competing despite losing their best talents. [ABSTRACT FROM AUTHOR]

The purpose was to analyse the income variation of the 13 top clubs of Deloitte Football Money League Report (2019) as well as the variation of the perceived value of their squad, obtained from the website www.transfermarkt.es during 9 seasons. Friedman's two-way analysis by ranges of selected samples and Wilcoxon W tests were used to measure the evolution and relation among the clubs’ income and perceived value of players. The income of clubs was deflected according to inflation (CPI: 2016) and market value was adjusted to a 20 players squad. Market value and income have a significant positive variation from one year to the next (p = .000). We found differences between both variables only in the last 2 years on the period analysed (2011-2019). Market value has suffered an increase higher than expected. This fact should make football managers reflect on how to control constant inflation in the transfer market.

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.

In 2010, the governing body of European football, UEFA, approved 'Financial Fair Play' regulations. Designed to encourage financial discipline, promote stability and foster competitive balance, they focus on a financial breakeven constraint. We analyse the impact of such constraints on the joint sporting and financial efficiency of English football clubs. The simultaneous production of both sporting and financial outputs are modelled using stochastic, non-parametric efficiency analysis. The sample is an unbalanced panel representing 60 clubs spanning the 2003/2004 to 2016/2017 seasons. The Financial Fair Play breakeven regulation reduces average club efficiency, raises the relative importance of financial goals (capturing revenue share) whilst lowering the relative importance of sporting goals (capturing point share). The efficiency costs of regulation are not borne equally by clubs. Breakeven regulations reduce the joint sporting and financial efficiency of regulated clubs, with the efficiency loss positively related to the severity of the breakeven constraint. The Financial Fair Play regulations further entrench the financial and sporting power of elite clubs and potentially undermine league competitive intensity by shifting the relative focus of clubs away from sporting productivity toward financial productivity. [ABSTRACT FROM AUTHOR]

Copyright of Contaduría y Administración is the property of Facultad de Contaduria y Administracion-Universidad Nacional Autonoma de Mexico and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

When introducing UEFA's Financial Fair Play (FFP) it was argued that as a beneficial side effect competition in European football leagues should become more equilibrated and perceived as being fairer. Based on a hand-collected dataset on league results, player market values as well as investor payments of more than 300 European football clubs, we scrutinize the impact of FFP on the competitive landscape in major European football leagues. By applying a fixed-effect panel regression difference-in-differences approach, we find results that are consistent with the view that FFP might have further amplified the competitive imbalance. This might be caused by the fact that FFP raises some barriers against the entrance of new investors. Moreover, we present evidence that FFP supports the former season's winner in terms of budget shares in the upcoming season. Overall, our results support the view that FFP turns European football leagues less equilibrated and even tends to freeze current hierarchies. [ABSTRACT FROM AUTHOR]

European football is a business with more and more attractive numbers for investors, shareholders or partners all over the planet. It has significantly changed especially over the last 20 years, following an intense procedure of acquisitions and marketing, a process that has brought important sums of money in this industry. This paper presents the overview of the “big five” European football leagues (England, Germany, Spain, Italy, France). The study is primarily focused on economics, but is also considering various social or cultural aspects (media, social media followers). The case-study on the five major leagues corroborates the theoretical underpinning. The paper investigates also the roots of financial regulation divergence in Europe and underlines the main issues regarding the UEFA financial fair-play rules.

Copyright of Collected Papers of the Faculty of Law in Split / Zbornik Radova Pravnog Fakulteta u Splitu is the property of Split Faculty of Law and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

UEFA’s Club Licensing and Financial Fair Play Regulations (FFP) have impacted European club football. After five distinct applications of the break-even requirement, which represents the cornerstone of these regulations, it is time for an assessment. How has the situation in European top-division football changed since the FFP regulation? The most recent financial data show that European club football is characterized by significant financial recovery and further polarization. How has the FFP regulation presumably affected this development? This article discusses plausible reasons why FFP has contributed to financial recovery but has not aggravated polarization. Understanding the drivers of polarization is essential before taking further regulatory steps.

In order to ensure fiscal discipline in the football clubs, European Football Federations Union (UEFA), has been put into force since 2013-2014 season so-called "Financial Fair Play Regulation" (FFP) to ensure that football clubs take necessary financial measures for sustainability. Within the scope of the regulation, a number of financial criteria that football clubs are obliged to comply with have been set, a committee has been appointed to monitor compliance with the criteria and sanctions have been envisaged in case of violation of the rules. The aim of the study is to investigate the pre-and post-FFP general situation of European football in the third year of application and the level of compliance with the FFP criteria of Turkey and European Football Clubs. The study includes comparing the teams selected from Turkey and European first leagues according to the 2015-2016 season in terms of compliance with the financial fair play criteria. As a result, it is seen that European clubs have become more compatible with FFP criteria in every new circumstance, and Turkish football clubs can not adapt to the rules. [ABSTRACT FROM AUTHOR]

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.