Purpose -The purpose of this paper is three-fold. First, to explore the relationship between the financial and sporting performance of clubs competing in the English Premier League (EPL). Second, to investigate the effect of different models of EPL club ownership on financial and league performance. Third, to review the finances of EPL clubs in the context of UEFA's Financial Fair Play regulations. Design/methodology/approach -Financial data from annual reports for the period 2001-2010 was collected for 20 EPL clubs. Correlation analysis was conducted to examine the relationship between the finances of EPL clubs and their league position. One-way analysis of variance (ANOVA) tests were then used to examine the effect of ownership type on clubs' financial and league performances. Where the results of ANOVA testing revealed statistically significant differences between groups, these were investigated further using appropriate post hoc procedures. Findings -The stock market model of ownership returned better financial health relative to privately owned (domestic and foreign) clubs. However, clubs owned privately by foreign investors or on the stock market performed better in the league in comparison with domestically owned clubs. The stock market model was more likely to comply with Financial Fair Play regulations. Originality/value -The paper confirms empirically that football clubs that float on the stock market are in better financial health and that clubs in pursuit of short-term sporting excellence are reliant on substantial investment, in this case from foreign investors.

Purpose This paper aims to provide empirical evidence on competitive balance in the “big five” European football leagues, namely, the English Premier League, French Ligue 1, German Bundesliga, Italian Serie A and Spanish La Liga. Design/methodology/approach This paper uses recognised measures of competitive balance to measure levels of concentration (within-season competitive balance) and dominance (between-season competitive balance) in the selected leagues over 22 seasons between 1995/96 and 2016/17. Findings French Ligue 1 emerged as the most balanced league in terms of both concentration and dominance measures. The analysis also points to a statistically significant decline in competitive balance in all leagues apart from Serie A (Italy). Originality/value The findings of this study are of concern for the league organisers. Competition intensity is a key component of a sport league, and a league that is dominated by one or a select few clubs is less attractive within the marketplace. This paper presents challenges at the league governance level for the five leagues examined.

Competitive balance of league competitions is an important component of sport economics. Evidence suggests that a less attractive product might struggle to command a high market value. Thus, it is imperative that sport leagues remain competitively balanced with a degree of uncertainty of outcome. This paper analyses competitive balance within the English football league system since the inception of the English Premier League (EPL) in 1992. It examines variations in overall competitive balance within and between the EPL and the three divisions that make up the Football League. Competition for the title, promotion and relegation is also analysed. The results indicate a reduction in competitive balance in the EPL over time and that the EPL is less balanced overall relative to the Football League, which is partly influenced by the higher financial disparity between teams in the EPL. Nonetheless, fan interest in the EPL and the value of broadcasting deals do not appear to be negatively influenced.

This paper devises and tests a statistical model (the PAM) to measure the financial and sporting performance of professional football clubs. The PAM has been applied to a longitudinal data set of English football clubs (21 clubs between 1992-2013) to identify trends in performance. The results show that a small number of clubs have created an imbalance within English football and that there has been evidence of a 'financial crisis' at individual clubs. For the majority of clubs, overall performance appears to vary over time in cycles. In addition to measuring holistic performance of professional football clubs in England, the paper has developed a statistically robust model that progresses research in the field. This new model has the potential to be adapted to fit other professional team sports to test league viability. It can also be used by the clubs themselves to set objectives and to analyse performance against competitors.

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PurposeThis paper analyses English Premier League (EPL) and English Football League (EFL) championship clubs during the period 2002–2019 to anticipate financial distress with specific reference to footballs' Financial Fair Play (FFP) regulations.Design/methodology/approachData was collected for 43 professional football clubs competing in the EPL and Championship for the financial year ends 2002–2019. Analysis was conducted using the Z-score methodology and additional statistical tests were conducted to measure differences between groups. Data was split into two distinct periods to analyse club finances pre- and post-FFP.FindingsThe results show significant cases of financial distress amongst clubs in both divisions and that Championship clubs are in significantly poorer financial health than EPL clubs. In some cases, financially sustainability has worsened post-FFP. The “big 6” clubs – due to their size – seem to be more financially sound than the rest of the EPL, thus preventing a “too big to fail” effect. Overall, the financial situation in English football remains poor, a position that could be exacerbated by the economic crisis, caused by COVID-19.Research limitations/implicationsThe findings are not generalisable outside of the English football industry and the data is susceptible to usual accounting techniques and treatments.Practical implicationsThe paper recommends a re-distribution of broadcasting rights, on a more equal basis and incentivised with cost-reduction targets. The implementation of a hard salary cap at league level is also recommended to control costs. Furthermore, FFP regulations should be re-visited to deliver the original objectives of bringing about financial sustainability in European football.Originality/valueThe paper extends the evidence base of measuring financial distress in professional team sports and is also the first paper of its kind to examine this in relation to Championship clubs.

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