An Overview of Foreign Exchange Management in Football Clubs

Abstract

Football, considered the most popular sport in today's world, has reached dimensions that go beyond being just a physical activity. With club budgets in the football industry reaching billions of dollars, international organizations contribute to the emergence of the need for sporting success in football. Football clubs make player transfers in order to achieve sporting success by building quality squads. Considering the transfer fees, especially in recent times, it is understood that player transfers are the most significant expense in club budgets. Managing football clubs with high budgets will certainly be possible through successful accounting practices. Conducting commercial activities in conjunction with sporting activities is of utmost importance. It is at this point that the concepts of finance and accounting in sports emerge, and the "foreign exchange" concept is considered the most important element in football club accounting. Since player transfer payments are made based on the exchange rate, clubs face the issue of foreign exchange management. Understanding the concept is necessary for the qualified management of foreign exchange payments that can create gains and losses in club budgets. This study aims to explain the importance and definition of the foreign exchange concept in football clubs.