scholarly journals Developing a Sustainable Business Environment in Sports- UEFA Financial Fair Play

2020 ◽  
Vol 5 (1) ◽  
pp. 01-09
Author(s):  
Sergiu-Vlad Stan ◽  
◽  
Teodora Odett Breaz ◽  
Keyword(s):  
Free Market ◽  
Business Environment ◽  
Arms Race ◽  
Financial Resources ◽  
Fair Play ◽  
Negative Effects ◽  
Sustainable Business ◽  
Financial Fair Play ◽  
Football Clubs

The competitive football system in Europe has created a platform for businesses all around the world either ready to buy football clubs or sponsor them. However, this particularly attractive environment makes football clubs want to compete at the limit of their financial resources. In order to prevent long term negative effects of this arms race, UEFA has implemented the Financial Fair Play Regulations (FFP). The purpose of this article is to find the causes that led to the need of controversially regulating the free market in sports. It also helps provide clarity regarding the future of these regulations.

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

2019 ◽  
Author(s):  
Ariela Caglio ◽  
Sébastien Laffitte ◽  
Donato Masciandaro ◽  
Gianmarco I.P. Ottaviano
Keyword(s):  
Fair Play ◽  
The Real ◽  
Real Effects ◽  
Financial Fair Play ◽  
Football Clubs ◽  
European Football

scholarly journals How the UEFA Financial Fair Play regulations affect football clubs’ priorities and leagues’ competitive balance?

2020 ◽  
Vol 9 (2) ◽  
pp. 119-142
Author(s):  
Pedro Garcia-del-Barrio ◽  
Giambattista Rossi
Keyword(s):  
Financial Stability ◽  
Structural Changes ◽  
Theoretical Description ◽  
Fair Play ◽  
Competitive Balance ◽  
Data Set ◽  
Legal Reforms ◽  
Financial Fair Play ◽  
Football Clubs ◽  
European Football

Institutional and legal reforms applied in the context of sports competitions often provoke structural changes that can be empirically investigated. Using a data set of 560 observations (20 teams per season, from 2009/10 to 2015/16, of teams playing in the Premier League, La Liga, Serie A and Ligue 1), this paper examines how the UEFA Financial Fair Play (FFP) regulations may have altered the football clubs’ decisions concerning their sport and financial priorities. Moreover, based on a simple theoretical description, the paper shows that the increasing financial stability promoted by the FFP rules might actually imply – as an undesired side effect – a declined competitive balance affecting the European football leagues. Finally, the paper discusses some policy issues and recommendations.

scholarly journals The Impact of UEFA Financial Fair Play Regulation on Audit Fees: Evidence from Spanish Football

2018 ◽  
Author(s):  
Mercedes Mareque ◽  
Angel Barajas ◽  
Francisco Lopez-Corrales
Keyword(s):  
Audit Fees ◽  
Fair Play ◽  
Financial Fair Play ◽  
Football Clubs ◽  
Panel Data Regression ◽  
Data Regression ◽  
Regulation Change ◽  
Audit Reports ◽  
The Impact

This paper analyzes if the Financial Fair Play (FFP) regulations set by UEFA have influenced the auditing fees charged to the football clubs. In addition, it explores the determinants of audit fees. We use a two-sample t test with equal variances to determine whether differences are present. After this, we carry out a panel data regression with clubs fix effect to estimate the determinants of audit fees in football clubs. Our findings reveal an increase of audit fees after the implementation of FFP regulations. On top of that, audit fees are explained by the presence of foreign investors if the audit firm is one of the Big4 and if the auditor is a woman. The regulation change has an impact on the audit fees charged by auditors for their services. However, this increase can be compensated across future years given the improving financial situation of clubs; therefore, the auditors’ risk diminishes and subsequent audit fees may be reduced. UEFA should monitor audit fees as well as the quality of the audit reports, which have become crucial to obtaining the license to participate in UEFA competitions.

scholarly journals The Impact of Union of European Football Associations (UEFA) Financial Fair Play Regulation on Audit Fees: Evidence from Spanish Football

2018 ◽  
Vol 6 (4) ◽  
pp. 92 ◽  
Author(s):  
Mercedes Mareque ◽  
Angel Barajas ◽  
Francisco Lopez-Corrales
Keyword(s):  
Audit Fees ◽  
Fair Play ◽  
Financial Fair Play ◽  
Big 4 ◽  
Football Clubs ◽  
Panel Data Regression ◽  
Data Regression ◽  
European Football ◽  
Audit Reports ◽  
The Impact

This paper analyzes whether the Financial Fair Play (FFP) regulations set by Union of European Football Associations (UEFA) have influenced the auditing fees charged to football clubs. In addition, it explores the determinants of audit fees. We used a two-sample t-test with equal variances to determine whether differences are present. After this, we carried out a panel data regression with the clubs fix effect to estimate the determinants of audit fees in football clubs. Our findings revealed an increase of audit fees after the implementation of FFP regulations. On top of that, audit fees were explained by the presence of foreign investors if the audit firm was one of the Big 4 and if the auditor was a woman. The regulation change has had an impact on the audit fees charged by auditors for their services. However, this increase may be compensated over future years given the improving financial situation of clubs; therefore, the auditors’ risk diminishes and subsequent audit fees may be reduced. UEFA should monitor audit fees as well as the quality of the audit reports, which have become crucial to obtaining the license to participate in UEFA competitions.

scholarly journals Analysis of The Implementation of UEFA Financial Fair Play: A Case Study on Arsenal and Machester United Football Club

2014 ◽  
Vol 5 (1) ◽  
pp. 123 ◽  
Author(s):  
Sendy Sendy ◽  
Gatot Soepriyanto ◽  
Nuraini Sari
Keyword(s):  
Financial Performance ◽  
Financial Statements ◽  
Financial Ratios ◽  
Fair Play ◽  
Football Club ◽  
Financial Fair Play ◽  
Football Clubs ◽  
European Football

This study aims to analyze the implementation of UEFA Financial Fair Play (FFP) to European football clubs. Research is conducted based on Arsenal and Manchester United football clubs financial statements for 2010-2012. The study uses financial simulation to test whether the two England-based club are able to meet the UEFA FFP rules. Analyses were also conducted on the financial performance ratios of both clubs and their effects on the implementation of the UEFA FFP. The result is the two clubs can meet the standard provisions for the implementation of UEFA FFP. In the assessment of financial performance, Arsenal have a slightly better financial ratios than Manchester United. Performance aspects of profitability and solvency became an issue in the implementation of UEFA's FFP, related with debt holdings and high salaries that owned by both clubs.

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