Abstract
This study reviews the impact of the Spanish Transparency Law (TL) 19/2013 and the Union of European Football Associations’ (UEFA) Financial Fair Play (FFP) regulations, on the transparency and accountability of Spanish professional football clubs, and examines the influence of financial performance on the transparency of Spanish football clubs. The study uses a Panel Data methodology (FGLS) to compare the international transparency index for football clubs (INFUT) with the criteria of UEFA’s FFP as a measure of the social and financial performance, respectively, on a sample of 28 Spanish professional teams of first and second division during the periods of 2015, 2016, and 2019. The study reveals that the implementation of TL 19/2013 and UEFA’s FFP has improved the transparency and accountability of clubs. On the one hand, the TL has facilitated access to financial information, and, on the other, the FFP regulations have contributed to improving the balance and financial viability of the clubs. The study also reveals that financial performance directly influences the transparency of clubs.
Highlights
A critical difference between sport and business organizations lies in the way they measure performance [1]
This same situation can be observed in leverage (>1) and solvency (>1.5), which, on average, seem stable, but the wide gap between minimum and maximum values shows a significant imbalance in the financial balance of the clubs
This study has examined the possible association between transparency and financial sustainability in Spanish professional football clubs
Summary
A critical difference between sport and business organizations lies in the way they measure performance [1]. The main aim of business organizations is to make a profit, while sport organizations measure performance based on sporting results [2,3,4]. The economic profits of a sport organization do not necessarily satisfy its stakeholders if the expected sporting results are not achieved [5].A classic example is European football clubs, in which maximizing performance on the playing field permeates the club’s management logic [6]. Other studies reveal that even investors in European professional football clubs prioritize sports performance over economic performance [13]. In this regard, Buraimo et al [14]
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