The Business Model of European Football Club Competitions

Abstract

Abstract This paper presents the business model of the most important football competitions in Europe at club level (Champions League and Europa League). In this academic endeavor we have addressed current themes and concerns that are less discussed in systematic scientific researches, such as: income and expenses sources per each competition, their dynamics, the distribution of funds to the participating clubs, their role in the economy of the most powerful teams and of the most important championships in Europe. The importance and role of the competitions considered herein are measured on the basis of sports considerations as well as on their financial indicators, as part of UEFA's budget, the highest forum that governs the entire European football phenomena from an administrative, financial and control perspective. Of course, football is not just a sport anymore. It has held for several years an important place in the current overall mechanisms of socio-economic life. As such, this entire framework dominated by economics is not complete without the current legislative, political, social or cultural conditions (globalization, audiences, sponsors, supporters, social media). Although in some cases it is difficult to make a proper inventory, such elements make up the profile of the true world phenomena. In this context, this paper analyses the implications of the introduction by UEFA of a new licensing and regulation framework “Financial Fair Play” and the benefits and disadvantages of this program for all parties involved in the football business at European level.