Controversies about the Accounting Treatment of Transfer Fee in the Football Industry

Pavlović, Vladan; Milačić, Srećko; Ljumović, Isidora

doi:10.7595/management.fon.2014.0001

Cited by 16 publications

(22 citation statements)

References 5 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The age, role, nationality and contract duration of each player, and the market value of the team, were collected from http://www.transfermarkt.co.uk, a leading football website with reliable information already used by several scholars approaching different football related subjects (e.g. Pavlović et al ., ; Majewski, ; Rohde & Breuer, ; Waldén et al ., ).…”

Section: Methodsmentioning

confidence: 97%

See 1 more Smart Citation

Do Italians Really Do It Better? Evidence of Migrant Pay Disparities in the Top Italian Football League

Torre

Giangreco

Legeais

et al. 2017

European Management Review

View full text Add to dashboard Cite

This study contributes to research on migrant pay disparities by analysing the impact of players' domestic/foreign status on performance‐based pay offered to professional footballers, to understand if foreign players benefit from a preferential labour market. We used information from publicly available data of 275 footballers who played for two consecutive seasons in the Italian league Serie A. We found that the relationship between previous and current performance was partially mediated by the current salary. This result reinforced earlier findings on the pay‐performance relationship, where seasonal performance is particularly relevant. Moreover, our results show that pay discrimination does not indicate a straightforward (dis)advantage for one group, but presents a more complex picture. We have examined possible underlying reasons for these disparities and offered suggestions for further research. We conclude by discussing how clubs and managers could consider incentives to strengthen pay‐performance relationships by being sensitive to the complex influence of players' origins.

show abstract

Section: Methodsmentioning

confidence: 97%

“…transfermarkt.co.uk, a leading football website with reliable information already used by several scholars approaching different football related subjects (e.g. Pavlović et al, 2014;Majewski, 2016;Rohde & Breuer, 2016;Waldén et al, 2016).…”

Section: Datasetmentioning

confidence: 99%

Do Italians Really Do It Better? Evidence of Migrant Pay Disparities in the Top Italian Football League

Torre

Giangreco

Legeais

et al. 2017

European Management Review

View full text Add to dashboard Cite

show abstract

“…The MREPFs represent the main accounting issue of football clubs (Pavlović et al, 2014). They are defined as "the tie between the athlete and the club, which may be construed as an atypical intangible asset, a sort of asset that gives the rights to exploit the performance for a set amount of time and that is sold by one club to another in case the footballer is transferred" (Fiori, 2003).…”

Section: Multiannual Rights To Exploit the Performance Of Footballersmentioning

confidence: 99%

The impairment test for football players: the missing link between sports and financial performance?

Maglio

Rey

2017

Palgrave Commun

View full text Add to dashboard Cite

The academic literature on financial reporting and accounting is limited in the football industry compared with other sectors of the economy. The purpose of this paper is to critically analyze the financial communications of football clubs with reference to the impairment test for football players. According to the International Financial Reporting Standards (IFRS), an impairment test measures whether a balance sheet item is actually worth the amount stated on the balance sheet. The balance sheet amount should be reduced if the impairment test indicates a lower value. At the end of each reporting period, a football club is required to assess whether there is any indication that a footballer may be impaired. The paper aims to show that the financial communications and reporting disclosed by football clubs about the impairment test procedure is poor and inadequate. It is argued that the UEFA regulations have gaps that ought to be filled and that IFRS are not perfectly suitable for companies operating in specific business sectors such as the football industry. The study is based on an extensive literature review and an analysis of previous academic studies. In addition, this study investigates the best practices reported in the footnotes of the financial statements of several football clubs in Italy, England and Scotland. These clubs operate and play in different jurisdictions and so also adopt different accounting standards. The research study reveals that only a few of the clubs studied give information about the impairment test in the footnotes to financial statements. This confirms that the financial communications of football clubs are limited. Secondly, only one club studied (Rangers F.C.) acknowledges that a possible external indication for performing an impairment test might be the failure to achieve the sporting goals fixed at the beginning of the sporting season. Our findings suggest that UEFA, FIFA and local football associations should promote new regulations aimed to improve the accuracy of the financial disclosure of football clubs. They should also introduce as an important external indicator to perform the impairment. This kind of failure has a negative impact on football clubs' revenues. These findings may also have interesting implications for other sporting organisations. This article is published as part of a collection on corporate governance, the sports industry and intellectual capital.

show abstract

“…Дакле, накнада за трансфере представља износ надокнаде који клуб са којим је играч под уговорном обавезом, добија од клуба са којим иг-рач потписује нови уговор. Трансфер према томе омогућава пренос регис-трације играча из једног професионалног клуба у други (Pavlović, Milačić, Ljumović, 2014). Концепт трансфера фудбалера установљен је у Енглеској пошто је Енглеска фудбалска асоцијација увела регистрацију играча не-где после 1885 године.…”

Section: историјски осврт на примену метода вредновања људских ресурсunclassified

Specificities of hr evaluation in the football industry

Pavlović¹,

Ljumović²,

Knežević³

2014

Posl ekonom

Self Cite

View full text Add to dashboard Cite

Controversies about the Accounting Treatment of Transfer Fee in the Football Industry

Cited by 16 publications

References 5 publications

Do Italians Really Do It Better? Evidence of Migrant Pay Disparities in the Top Italian Football League

Do Italians Really Do It Better? Evidence of Migrant Pay Disparities in the Top Italian Football League

The impairment test for football players: the missing link between sports and financial performance?

Specificities of hr evaluation in the football industry

Contact Info

Product

Resources

About