The Financial Performance of the English Football Clubs
DOI:
https://doi.org/10.47747/ijfr.v5i2.1792Keywords:
Financial Performance, Footbal Clubs, Liquidity, Leverage, EfficiencyAbstract
The financial performance of twenty English football clubs over the period 2013-22 is examined in this study with correlation and panel data analysis. Three performance measures are used: Return on Assets (ROA), Return on Equity (ROE), and Profit Margin. The size of clubs and their liquidity, leverage, efficiency, cash flow efficiency, and turnover per employee are employed as explanatory variables of performance. Sporting data, including attendance rate, the number of wins, the uncertainty in the Premier League, participation in the Premier League or not, and the presence in UEFA’s European club competitions, are also assessed. The empirical findings accentuate a positive relationship between performance and liquidity, efficiency, cash flow efficiency, and revenue per employee. The opposite is the case for leverage. Wins are positively related to ROA, while the opposite relationship is found for the uncertainty factor. Finally, the presence of clubs in the Premier League is positively associated with their financial performance
References
Alaminos, D., Esteban, I., and Fernández-Gámez, M.A., (2020), “Financial Performance Analysis in European Football Clubs”, Entropy 22, pp. 1-16.
Barajas, A., Jardon, C., and Crolley, L., (2005), “Does Sports Performance Influence Revenues and Economic Results in Spanish Football?, working paper, available on https://papers.ssrn.com.
Buraimo, B., Simmons, R., and Szymanski, S., (2006), “English Football”, Journal of Sports Economics 7(1), pp. 29-46.
Dimitropoulos, P.E., (2009), “Profitability of the Greek Football Clubs: Implications for Financial Decisions Making”, Business Intelligence Journal 2(1), pp. 159-169.
Dimitropoulos, P.E., (2010), “The Financial Performance of the Greek Football Clubs”, Choregia Sport Management International Journal 6(1), pp. 5-27.
Dimitropoulos, P.E., and Alexopoulos, P., (2014), “Attendance, Revenues, Profits and the On-Field Performance of the Greek Football Clubs”, International Journal of Scientific Engineering and Research 2(9), pp. 33-39.
Dimitropoulos, P.E., and Limperopoulos, V., (2014), “Player Contracts, Athletic and Financial Performance of the Greek Football Clubs”, Global Business and Economics Review 16 (2), pp. 123-141.
Dimitropoulos, P.E., and Tsagkanos, A., (2012), “Financial Performance and Corporate Governance in the European Football Industry”, International Journal of Sport Finance 7(4), pp. 280-308.
Ferri, L., Macchioni, R., Maffei, M., and Zampella, A., (2017), “Financial Versus Sports Performance: The Missing Link”, International Journal of Business and Management 12(3), pp. 36-48.
Fraile, I.A., Serrano, R., and Dimitropoulos, P.E., (2017), “Ownership Structure and Financial Performance in European football”, Corporate Governance 17(3), pp. 511-523.
Hamil, S., and Walters, G., (2010), “Financial Performance in English Professional Football: ‘An Inconvenient Truth’”, Soccer & Society 11(4), pp. 354-372.
Ika, S.R., Nugroho, J.P., Udin, K., and Koenti, I.J., (2020), “Assessing the Financial Performance of English Football Clubs: Arsenal and Manchester City”, Proceedings of the 3rd International Conference of Banking, Accounting, Management and Economics.
Janssens, P., and Kesenne, S., (1987), “Belgian Soccer Attendances”, Tijdschrift voor Economie en Management 32(3), pp. 305-315.
Jennett, N., (1984), “Attendance, Uncertainty of Outcome and Policy in Scottish League Football”, Scottish Journal of Political Economy 31(2), pp. 176-198.
Kevser, M., and Dogan, M., (2022), “Comparative Analysis of the Financial Performance of 5 Major Football Clubs in UEFA Ranking”, Accounting Science World Journal 24(2), pp. 436-460.
Khan, M.N., Parksh, R., Shamim, M., and Ali, S., (2021), “Does Audit Quality Matter for Firm Performance? Empirical Evidence from Pakistani Public Listed Companies”, Elementary Education Online 20(5), pp. 3953-3960.
Majundar, S.K., (1997), “The Impact of Size and Age on Firm-Level Performance: Some Evidence from India”, Review of Industrial Organization 12, pp. 231-241.
Millward, P., (2013), “New Football Directors in the Twenty-First Century: Profit and Revenue in the English Premier League’s Transnational Age”, Leisure Studies 32(4), pp. 399-414.
Ozawa, T., Cross, J., and Henderson, S., (2004), “Market Orientation and Financial Performance of English Professional Football Clubs”, Journal of Targeting, Measurement and Analysis for Marketing 13, p.p. 78-90.
Peel, D., and Thomas, D., (1988), “Outcome Uncertainty and the Demand for Football”, Scottish Journal of Political Economy 35(3), 242-249.
Penman, S., (2001), “Financial Statement Analysis and Security Valuation”, McGraw-Hill.
Samagaio A., Couto, E., and Caiado, J., (2009), “Sporting, Financial and Stock Market Performance in English Football: An empirical Analysis of Structural Relationships”, working paper, available on https://citeseerx.ist.psu.edu/viewdoc/download.
Scafarto, V., and Dimitropoulos, P.E., (2018), “Human Capital and Financial Performance in Professional Football: The Role of Governance Mechanisms”, Corporate Governance 18(2), pp. 289-316.
Szymanski, S., (1998), “Why is Manchester United so Successful?”, Business Strategy Review 9(4), pp. 47-54.
Szymanski, S., and Smith, R., (1997), “The English Football Industry: Profit, Performance and Industrial Structure”, International Review of Applied Economics 11(1), pp. 135-153.
Wilsom, R., Plumley, D., and Ramchandani, G., (2013), “The Relationship between Ownership Structure and Club Performance in the English Premier League”, Sport, Business and Management: An International Journal 3(1), pp. 19-36.
Yameen, M., Farhan, N.H.S., and Tabash, M., (2019), “The Impact of Liquidity on Firms’ Performance: Empirical Investigation from Indian Pharmaceutical Companies”, Academic Journal of Interdisciplinary Studies 8(3), pp. 212-220.
Zygmunt, J., (2013), “Does Liquidity Impact on Profitability? A Case of Polish Listed IT Companies”, Conference of Informatics and Management Sciences, Poland, March 25-29.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Gerasimos G Rompotis
This work is licensed under a Creative Commons Attribution 4.0 International License.
Copyright for this article is retained by the author(s), with first publication rights granted to the journal.
It is an open-access article distributed under the terms and conditions of the Creative Commons Attribution license (http://creativecommons.org/licenses/by/4.0/)
