Abstract

The financial performance of football clubs has become an essential element to ensure the solvency and viability of the club over time. For this, both the theory and the practical and regulatory evidence show the need to study financial factors, as well as sports and corporate factors to analyze the possible flow of income and for good management of the club’s accounts, respectively. Through these factors, the present study analyzes the financial performance of European football clubs using neural networks as a methodology, where the popular multilayer perceptron and the novel quantum neural network are applied. The results show the financial performance of the club is determined by liquidity, leverage, and sporting performance. Additionally, the quantum network as the most accurate variant. These conclusions can be useful for football clubs and interest groups, as well as for regulatory bodies that try to make the best recommendations and conditions for the football industry.

Highlights

  • Financial performance is the main concern that affects any company, where the importance of control will increase in the new post-COVID scenario, which will cause major financial performance problems for companies after large drops in consumption

  • Highest was For thatits ofpart, quantum neural networks (QNN)

  • This study developed a new financial performance analysis model for football clubs

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Summary

Introduction

Financial performance is the main concern that affects any company, where the importance of control will increase in the new post-COVID scenario, which will cause major financial performance problems for companies after large drops in consumption. Previous literature has pointed out that the balance of the club’s profit and loss account is the variable that best explains the financial position of European club football [5,6] To mitigate these potential future financial problems for clubs, UEFA introduced the financial fair play (FFP) financial regulation as one more element of its licensing regulations [7]. This work improves on the previous literature in the improvement and expansion of explanatory variables to forecast the financial performance of football clubs, considering new types of variables not yet contrasted previously and that gave good results This has great implications for football managers and executives, as they will be able to use this information to perform a more accurate analysis of financial performance.

Literature Review
Neural Networks Methods
Sensitivity Analysis
Data and Variables
Descriptive Statistics
Estimated Results
Results
Post-Estimations
Conclusions
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