What is it about?
In the paper the authors put together managerial point of view and economical one, in order to understand how FFP can impact on profitability of football clubs. The authors use an empirical econometrics model to test the hypothesis about business model of Italian Clubs.
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Why is it important?
There is a close-link between costs and profitability, and especially between expenditure on players and the ability to close the financial year with a profit. Clubs must address the issue of player wages in order to follow a path of economic recovery towards profitability.
Perspectives
The results show that the key contributing factors to profits are on the costs side. In particular, the most relevant expenses are player wages. The core revenue for clubs comes from the net profit from player trading, while other income, such as TV rights, commercial and match-day proceeds, have no statistical significance for profit formation.
Mr Mario Nicoliello
Universita degli Studi di Brescia
Read the Original
This page is a summary of: Football clubs’ profitability after the Financial Fair Play regulation: evidence from Italy, Sport Business and Management An International Journal, September 2016, Emerald,
DOI: 10.1108/sbm-07-2014-0037.
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