Location
Sydnor Performance Hall, Schewel Hall
Access Type
Campus Access Only
Presentation Type
Oral presentation
Entry Number
202
Start Date
4-16-2026 9:00 AM
End Date
4-16-2026 9:15 AM
School
School of Liberal Arts and Sciences
Department
Business
Keywords
Business, Financial Fair Play, Soccer, Football
Abstract
In 2011, UEFA introduced Financial Fair Play (FFP) regulations in response to the low profitability of European football clubs, with the aim of discouraging clubs from spending more than they earn and promoting competitive balance. Research conducted in this project will investigate the effectiveness of the FFP regulations in promoting competitive balance and limiting excessive club spending. Data from the ‘Big Five’ European leagues (England, Spain, Italy, Germany, and France) from 2008 through 2024 will be used to analyze differences pre- and post-FFP. The overall wage-to-revenue ratio of each league will be used as a measure of profitability, the leverage ratio of each league will be used as a measure of solvency, and the Noll-Scully ratio will be used to determine each league's competitive balance coefficient. This study will also examine trends in spending and revenues before and after the implementation of FFP, drawing on research papers and case studies of clubs subject to FFP sanctions and/or monitoring. Although we observe some positive changes in pre- and post-FFP metrics for league profitability and leverage, the evidence is weak that these changes are significant. The positive changes in profitability and leverage in some leagues may simply reflect recovery from the COVID-19 financial crisis, rather than the implementation of FFP regulations. There is also no observable decrease in the competitive balance after the implementation of FFP. There are also numerous significant cases of clubs breaching FFP regulations without punishment. Thus, UEFA must strengthen its efforts to enforce regulations across European football, implementing additional financial regulations to improve competitive balance.
Primary Faculty Mentor(s)
Dr. John Angelis Prof. Sandy Glass Dr. Paul McClure
Primary Faculty Mentor(s) Department
Operations Management Accounting Sociology
Additional Faculty Mentor(s)
N/A
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Financial Fair Play (FFP) Regulations and Their Effects on The ‘Big Five’ Leagues’ Competitiveness and Financial Health
Sydnor Performance Hall, Schewel Hall
In 2011, UEFA introduced Financial Fair Play (FFP) regulations in response to the low profitability of European football clubs, with the aim of discouraging clubs from spending more than they earn and promoting competitive balance. Research conducted in this project will investigate the effectiveness of the FFP regulations in promoting competitive balance and limiting excessive club spending. Data from the ‘Big Five’ European leagues (England, Spain, Italy, Germany, and France) from 2008 through 2024 will be used to analyze differences pre- and post-FFP. The overall wage-to-revenue ratio of each league will be used as a measure of profitability, the leverage ratio of each league will be used as a measure of solvency, and the Noll-Scully ratio will be used to determine each league's competitive balance coefficient. This study will also examine trends in spending and revenues before and after the implementation of FFP, drawing on research papers and case studies of clubs subject to FFP sanctions and/or monitoring. Although we observe some positive changes in pre- and post-FFP metrics for league profitability and leverage, the evidence is weak that these changes are significant. The positive changes in profitability and leverage in some leagues may simply reflect recovery from the COVID-19 financial crisis, rather than the implementation of FFP regulations. There is also no observable decrease in the competitive balance after the implementation of FFP. There are also numerous significant cases of clubs breaching FFP regulations without punishment. Thus, UEFA must strengthen its efforts to enforce regulations across European football, implementing additional financial regulations to improve competitive balance.
Comments
N/A