European Football Clubs Research Articles

FUTBOL KULÜPLERİNİN NAKİT AKIŞ PROFİLLERİNİN ANALİZİ: ULUSLARARASI BİR KARŞILAŞTIRMA

Bu çalışmanın temel amacı futbol kulüplerinin nakit akış performanslarının uluslararası olarak karşılaştırmalı analiz edilmesidir. Bu kapsamda Türkiye Spor Toto Süper Ligi ve Avrupa’daki 10 ulusal ligde bulunan 29 futbol kulübünün 2013-2018 yılları arasındaki nakit akış tabloları “Nakit Akışlarının Sağlandığı Faaliyetler Yöntemi”ne göre analiz edilmiştir. Analiz sonuçlarına göre futbol kulüplerinin en çok sahip olduğu nakit akış profillerinin sırasıyla; Model 2: başarılı işletme, Model 6: genç işletme ve Model 4: büyüyen işletme olduğu belirlenmiştir. Çalışma sonucunda ayrıca Avrupa’daki futbol kulüplerinin genellikle işletme faaliyetlerinden pozitif, yatırım ve finansman faaliyetlerinden negatif nakit akışına sahip olduğu, Türkiye’deki futbol kulüplerinin ise genellikle finansman faaliyetlerden pozitif, işletme ve yatırım faaliyetlerinden negatif nakit akışına sahip olduğu saptanmıştır.

The Effect of Investment in European Football on the Market Value of Chinese Corporations

Abstract: This paper analyzes how investments in professional European football clubs affect the market value of Chinese corporations. Twelve acquisition cases with complete stock return data are identified between 2009 and 2017. Applying traditional financial event study methodology, it appears that Chinese corporations, on average, do not earn abnormal returns as a result of their investments in professional European football clubs. However, as exceptions to this finding, a few corporations show significant positive or negative abnormal returns. This study also hints at an association between the change in market value of acquiring corporations, the relative transaction size, and their industry relatedness. These findings have important implications for corporate and football managers, current stock holders, and future investors.

In Search of “Greener Pitches”: African Footballers and Labor Market Migration in European Football

This article examines the migration of African, including Nigerian, footballers to Europe in search of better professional opportunities. The paper situates the migration of Nigerian footballers to European football clubs in the political economy of international football and the location of African footballers in that context. The search for “greener pitches” among African footballers is, the paper argues, largely a product of a combination of political and economic factors, central to which is the neoliberal market ideology underlain by globalization and the technological breakthroughs in information and communications technology, and the massive developments that the world has witnessed in the transportation system. The paper highlights how the role of international organizations like FIFA, UEFA and CAF has led to the emergence of unscrupulous elements whose activities have served to undermine the growth and development of African football. By way of conclusion, the article suggests that unless these apex governing bodies of world football join forces, the exploitation of aspiring young African footballers seeking to migrate to Europe will persist, with grave implications for the development of the “beautiful game” in Africa.

Does Financial Fair Play Matter? The Real Effects of UEFA Regulation for European Football Clubs

We provide the first detailed quantitative assessment of the effects of the Financial Fair Play Regulation (FFPR) introduced by the Union of European Football Associations (UEFA) on the income statements and balance sheets of European football clubs. While other studies exist documenting the financial challenges of the European football industry, to the best of our knowledge none has yet analyzed the implications of the FFPR. Our analysis relies on two two sources of information, one we assembled using information from Amadeus (Bureau van Dijk) and the other collected by the UEFA for the specific purpose of implementing the FFPR. Drawing on Amadeus data and regression outputs provided by the UEFA, we consistently find that the introduction of the FFPR has been followed by a significant improvement in the clubs’ income statements, which is consistent with the new accounting rules having ‘real effects’ on the clubs’ management. However, this positive development has yet to be paralleled also in the club’s balance sheets (notably in terms of debt) and cash flow statements, which may call for the FFPR to be further extended in that direction.

Analisis Model Pengelolaan Platform New Media Oleh Klub Sepakbola di Indonesia

This study aims to determine what models are created from the management of the new media platform by football clubs in Indonesia. Furthermore, the results of this study will be compared with the new media management model conducted by European football clubs through the MOSC (Model for Online Sport Communication) approach. The benefit of this research is the creation of a model that can be used as a reference for other football clubs, in utilizing the new media platform. This study uses a qualitative approach in which data collection techniques will begin by using content analysis of all new media platforms for football clubs in Indonesia, which leads to the selection of ten clubs having the highest number of followers, where in the course of the journey there are only seven clubs namely Persib Persija, Arema, Persebaya Persela , PSIS, and PSS who are willing to be the main objects in this study. Furthermore, data collection techniques through in-depth interviews are also used by researchers to the media officer division to obtain research answers. This research produces findings in the form of the creation of three models in the management of new media platforms in Indonesian soccer clubs, namely: active interaction models, passive interactions, and non-interactions.

Nostalgia, motivation, and intention for international football stadium tourism

ABSTRACTBased on cognitive–affective-behaviour theory, authors examined how European football club fans’ nostalgia and motivation affect the intention to visit an overseas stadium. Results from 301 European football club fans, yet to visit their favourite football team stadium, showed that nostalgia positively affected motivation and motivation significantly influenced intention to visit the stadium. Testing the mediation effect between nostalgia and intention to visit an overseas stadium, only the indirect effect was significant and not the direct effect. This study extends the knowledge of first-time visitors’ decision-making process and provides insights for sport marketers to develop effective marketing strategies in sport tourism.

Measuring player development outputs in European football clubs (2005-2006 to 2015-2016)

PurposeThe Union of European Football Associations (UEFA) legislative intervention around “home-grown” player quotas came into effect for the 2006-2007 season, aiming to protect playing opportunities and the development of indigenous talent. Previous research has identified clear differences between clubs and club types regarding opportunities for academy players. This paper aims to examine the outputs from six European leagues (France, Germany, Italy, The Netherlands, Spain and England), identifying differences between national associations, club type, and on an individual club level. The paper investigates different league structure (in terms of allowing reserve teams in the professional leagues) and assesses UEFAs legislation in relation to programme theory (expected outcomes).Design/methodology/approachThe study is based on playing data from 200 clubs and 3,329 indigenous players making their debut in one of the six leagues since 2006, and includes ten seasons of competition to 2015-2016.FindingsThe number of players produced and playing opportunities offered since 2006 are more prominent in the Spanish, The Netherlands, French and German leagues compared to Italy and England. For those clubs competing in all ten seasons, a similar pattern emerges with those four nations producing greater outputs. Four clubs significantly outperform others in terms of producing players reaching any top-six league first team, and for their own academy graduates. Additionally, the four leagues allowing reserve teams in their professional structure have a higher level of “output” for their academy players.Originality/valueThe paper discusses issues in the design of the legislation (not making nationality a factor and being unable to control other dominant variables) as key weaknesses to influencing change, and achieve the rationale cited by UEFA for its introduction.

Assessing the survival of shirt sponsorships in English football: an exchange theory perspective

PurposeOver the past several years, growth in sponsorship spending has surpassed that of traditional marketing and promotional approaches, as it has become an indispensable part of the marketing mix. Yet, despite considerable advances in the application of analytics across the sport industry, sponsorship revenue forecasting still largely relies on a decades-old methodology. The paper aims to discuss this issue.Design/methodology/approachThis research seeks to assist sport organizations by applying more advanced survival analysis methodologies to the study of shirt sponsorships of football clubs, utilizing more than 300 sponsorships of every team that has competed in the English Premier League (EPL) over the past 25 years.FindingsThe analysis of the lifetimes of shirt sponsorships provides several insights for those employed by European football clubs and tasked with managing these increasingly lucrative sponsorships. Notably, tests confirmed that survivor functions of EPL shirt sponsorships are significantly different than those that appeared solely in English Football League (EFL) Championship play. In addition, results found that the median lifetimes of shirt sponsorships of EPL clubs were more than one year longer, when compared to EFL clubs.Originality/valueThis research marks the first attempt in the literature to apply survival analysis methods to describe the lifetimes of European football shirt sponsorships. The results provide empirical evidence that the potential effects of promotion or relegation could have consequences for football clubs in the tens of millions of dollars, and illustrate the importance of providing those tasked with managing such partnerships with more advanced methodologies to assist in the organization’s sponsorship revenue forecasting activities.

The Association Between Psychological Commitments to Team and Mental Health of Football Fans Within an Academic Setting

Several factors have been identified as buffers against academic stress experienced by undergraduates but less attention has been given to the role of commitment to football club fan-ship. This study examined psychological commitments to fan-ship of European football clubs as a predictor of mental health of 300 undergraduates in a Nigerian university. Data were collected using structured psychological tests which include the Psychological Commitment to Team Scale, General Health Questionnaire (GHQ-12) and Ryffs Psychological Well-Being Scale (PWB-18). Regression and one-way MANOVA were utilized for data analyses. Results indicated that psychological commitments to team associates with GHQ and PWB scores with variances of 8% and 17% respectively. Specifically, for every one unit in psychological commitments to team, there was .41 rise in psychological well-being and .27 increase in general health. However, team affiliation was not significant on GHQ and PWB scores. Based on findings, it was suggested that academic environments should be structured to accommodate students’ interest in fan-ship of football clubs in order to ensure emotional wellness.

Market valuation and risk profile of listed European football clubs

PurposeThe purpose of this paper is to explore whether stocks in football clubs are valued in line with the valuation of other capital assets in the capital market. Moreover, it analyzes the risk profile of football stocks. By taking this perspective, the paper also contributes to the discussion on the motives of those who invest in football clubs, particularly the question of whether they expect extra benefits, i.e., in addition to dividends and share price appreciation, from the investments.Design/methodology/approachThe empirical study analyzes the share prices of 19 listed European football clubs from January 2010 to December 2016. Building on the capital asset pricing model, the authors used Zellner’s (1962) seemingly unrelated regressions.FindingsThe results indicate that the majority of the football clubs in the sample are overvalued. This implies that investments in football stocks are mainly attractive for those investors who expect to derive extra benefits from their investment. That might be likely for strategic, patron and fan investors, but not for purely financial investors.Research limitations/implicationsAs a next step, more advanced factor models could be applied to the analysis.Practical implicationsFor investors, the results imply that portfolio diversification is particularly beneficial while buying football stocks. For football clubs, the rather low general market risk, combined with the overvaluation, leads to low equity costs when new shares are issued.Originality/valueThe results suggest that dividends and share price appreciation are not the only benefits football stock owners derive from the stocks, thus underlining that further investigations in their motives to hold football stocks are very promising.

The corporatisation of football and CSR reporting by professional football clubs in Europe

Purpose The purpose of this paper is to examine differences in corporate social responsibility (CSR) reporting on the websites of football clubs based in five European countries with different levels of football corporatisation. Design/methodology/approach The study examines CSR reporting on the internet by football clubs based in five European countries. Multiple regression analysis is used to analyse some factors which influence reporting and test a set of hypotheses. Findings The findings suggest that clubs from countries in which the level of corporatisation is higher disclose more CSR information. Also, clubs with higher public visibility disclose a higher variety of CSR information. Originality/value This study adds to the scarce research on CSR reporting in professional sports leagues by providing new empirical data and by extending prior research comparing such practices within different international frameworks of CSR.

Analysis of the Structure and Use of Digital Resources on the Websites of the Main Football Clubs in Europe

Football clubs can be considered global brands, and exactly as any other brand, they need to face the challenge of adapting to digital communications. Nevertheless, communication sciences research in this field is scarce, so the main purpose of this work is to analyze digital communication of the main football clubs in Europe to identify and describe what strategies they follow to make themselves known on the internet and to interact with their users. Specifically, the article studies the characteristics of web pages—considered as the main showcase of a brand/team in the digital environment—of the fifteen best teams in the UEFA ranking to establish what type of structure and what online communication resources they use. Through a descriptive and comparative analysis, the study concludes, among other aspects, that the management of communication is effective, but also warns that none of the analyzed team takes full advantage of the possibilities of interaction with the user offered by the digital scenario.

Is The Sport Management Course Curriculum Compatible With Football Governing Institutions?

Sport is becoming a global phenomenon. Moreover, it has been one of the major sources of income for the government in different countries. Therefore, sport management education is becoming increasingly important in the management of sports. Countries that spend more on the development of sports facilities have been associated with huge improvements in the sports industry. Similarly, clubs that spend more on acquiring new talents in the industry and availing sports facilities have been associated with higher performance. This led the European football clubs in the spending more than they earn so as to acquire the services of the best talents and avail the best sports facilities so as to perform better. Therefore UEFA (Union of European Football Associations) launched its financial fair play regulations. UEFA financial fair play regulations were introduced to prevent the European football clubs from overspending. This situation affects the education curriculum of the sports management departments in universities. The regulations have compelled the clubs to spend at the break-even point. This has led to the improvement in brand value, increased sponsors, and making decisions that do not lead the clubs to overspend. As a result, the clubs have grown economically and achieved higher financial stability. This research explores the adaptation of the sport management curriculum to these new situations.

International orientation of professional football beyond Europe

PurposeThe purpose of this paper is to investigate how professional football clubs from the English Premier League, German Bundesliga and Spanish Primera División use digital media to expand their international reach in emerging football markets (EFM) outside of Europe. Based on the EPRG framework and Rugman’s home-region hypothesis, the aim is to broaden the perspective where “sports go global” for a further understanding of actors’ international orientation in the digital sphere.Design/methodology/approachThe study is based on data from desk research and a qualitative survey, comprising information on international digital media activities of 58 European clubs. Cluster analysis is used to identify different international orientations with regard to digital media activities.FindingsThe data provide evidence that clubs differ strongly in their orientations towards EFM. While some global players that provide digital media content in several EFM languages and attract a large share of Facebook followers from EFM exist, other clubs focus on their home region. League-specific differences become apparent.Originality/valueThis study determines the international online orientations of European football clubs by combining two previously separated research streams in football management studies: internationalisation and digital media activities. Most clubs with a strong EFM fan base choose polycentric, multi-language digital media strategies, followed by geocentric, standardised approaches. By offering a novel angle on internationalisation in professional football, this study contributes towards optimising clubs’ international online strategies for EFM, which are markets that promise high growth rates.

Potential investment to professional sport subjects

Purpose of the study.The introduction of financial discipline rules by the Union of European Football Associations started a new stage in the development of the football industry. According to the UEFA statistical report in 2017, football clubs for the first time reported a total profit of more than 600 million Euros, while a few years earlier the total losses of clubs representing the highest European football divisions were 1.7 billion Euros. This fact indicates a possible change in the investment attractiveness of sports clubs. The purpose of this study is to assess the presence of the investment potential of the football industry as a possible object of capital investment.Materials and methods.The study analyzed the data obtained from the official statistical sources, including a comparative UEFA report for 2017 on the licensing of clubs “Landscape of European Club Football”, normative legal acts regulating public relations in the field of professional sports, publishing in periodicals and the Internet, illustrating the practice and problems of professional sports development, as well as statistical data from the portals www.stoxx. com and www.investing.com. The study applies such methods of scientific cognition as a method of statistical and economic analysis, comparison, analogies, synthesis, as well as the method of measuring and aggregating data, the graphical and tabular method.Results of the research.When considering the shares of professional sports clubs as objects of capital investment, it is advisable for investors to pay attention to the functional type of assets that such organizations possess and the degree of diversification of their activities. The structure of non-current assets and the share attributable to tangible assets - sports infrastructure and other objects, is an important factor affecting the specific risks inherent in the activities of sports subjects, which allows to compensate losses incurred as a result of not achieving the goal set for the team for the season due to revenues from other activities that affect the investment attractiveness of the club.Conclusion. Based on the results, we can draw the following conclusions. The football industry has significant revenue growth potential. The increase in the financial profitability of professional sports subjects is accompanied by a rise in the stock index quotes, which accumulates the shares of European public football clubs. The comparative analysis carried out in the research indicates the attractiveness of these financial instruments as an investment object. However, such investments are characterized by a high degree of risk due to the specificity inherent in the professional sports industry. From the total number of factors affecting the exchange rate fluctuations of football clubs' shares, one can single out the most significant indicators such as the outcome and significance of the match, the nature of the tournament, and the sports (physical) form of the team.

Interactions between financial efficiency and sports performance

Purpose In the current economic climate, the huge rise in the levels of debt incurred by professional football clubs challenges the need to improve their efficiency levels. Hence, analysis of their productivity is essential and represents an integral dimension to any realistic and efficient strategy. Any such strategy includes the identification and analysis of the inputs and outputs that underpin club sustainability. The purpose of this paper is to evaluate the relationship between the team performance of professional European football clubs and the stability of their financial efficiency. Design/methodology/approach The sample spans 15 professional football clubs that won the league titles in the leading football leagues (the English, German, Spanish, Italian and French leagues) in the period between 2009 and 2014. The analysis made recourse to the data envelopment analysis method. Findings The results demonstrate that of the 15 clubs analysed, only 10 proved efficient. Football is now an industry that moves major quantities of financial capital and holds the attentions of large groups of fans worldwide. However, despite this attractiveness, the financial crisis and recession, ongoing since 2008, increasingly requires the better management of such resources. To this end, clubs should improve their control over the financial resources available given the positive relationship prevailing between the sporting performance of clubs and their levels of financial efficiency. Originality/value Analysis of the efficiency levels of the inputs and outputs encapsulating performance related financial variables may aid in improving the standards of planning and sustainable management at professional sport clubs.

Modern tactical creation of a game of the leading European football clubs of 2018.

Modern tactical creation of a game of the leading European football clubs of 2018.

Die UEFA Champions League als politischer Mythos. Einigung Europas oder Entfremdung der Fans?

The article seeks to describe and discuss the UEFA Champions League as an eventually emerging political myth. This continent-wide competition in top-level European club football has been rendered both an „integration engine“ (contributing to a further amalgamation of societies of supporters and interested Europeans in a lifeworldy sphere) as well a „grave digger“ of football (due, for instance, to its detrimental effects on some national competitions across Europe). Following from that, we distinguish between two countervailing narrative strands, with several motives and sub-narratives in both, that have the potential to either cement or to undermine the mythological nature of the Champions League. Whereas the positive narrative hints at politically relevant forms of societal integration through the presence of a continent-wide, de facto league of top football clubs, the negative counterpart suggests that the Champions League is a driver for (over-)commercialisation and a threat for the integrity of „true“/traditional football. We argue that these two Champions League narratives do not seem to (completely) neutralise each other. While fans may be alienated by the commercialisation triggered through the Champions League, at the same time the Champions League may have a unifying effect by widening perspectives, fostering a common continental communicative space, or constituting an engine of lived integration. In the remainder we seek to outline possible avenues of future research into how football fans - not so much elite commentators such as politicians, club and association officers, scholars and journalists - indeed perceive of the Champions League and hence link up to the two broader narratives identified.

European Club Football after “Five Treatments” with Financial Fair Play—Time for an Assessment

UEFA’s Club Licensing and Financial Fair Play Regulations (FFP) have impacted European club football. After five distinct applications of the break-even requirement, which represents the cornerstone of these regulations, it is time for an assessment. How has the situation in European top-division football changed since the FFP regulation? The most recent financial data show that European club football is characterized by significant financial recovery and further polarization. How has the FFP regulation presumably affected this development? This article discusses plausible reasons why FFP has contributed to financial recovery but has not aggravated polarization. Understanding the drivers of polarization is essential before taking further regulatory steps.

Do match officials give preferential treatment to the strongest football teams? An analysis of four top European clubs

Abstract We address the fiercely debated question of whether the strongest European football clubs get special, preferential treatment from match officials in their decisions on the teams’ players over the course of the teams’ trophy winning streaks. To give an empirical answer to this question, we apply a rigorous econometric analysis for causal effect estimation to a self-constructed data set. We consider the two clubs in the Italian Serie A that experienced a prolonged winning streak during the period 2006–2016, namely Internazionale Milan (Inter) and Juventus Turin, as well as one team from the German Bundesliga (Borussia Dortmund) and one from the English Premier League (Manchester United) that also experienced a winning streak during the same period. This allows us to perform an analysis with enough statistical power to be able to estimate properly the effect of interest. The general opinion among fans, sports journalists, and insiders that the strongest clubs are favored by match officials’ decisions is supported only by the results of the analysis we run for Juventus, whereas for the other clubs under investigation, we did not find any significant bias. During its winning streak, more yellow cards and total booking points (an aggregated measure of yellow and red cards) were given to Juventus opponents. These effects are not only statistically significant, but also have a sizeable impact.