Investor Presence and Competition in Major European Football Leagues

Birkhäuser, Stephan; Kaserer, Christoph; Urban, Daniel

doi:10.2139/ssrn.2759335

Cited by 5 publications

(8 citation statements)

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“…They argue that the share of the clubs from the total league income is a source for the transfer of talented players, that the dominant league teams earn more income than the other teams due to the pool system, and for this reason, the competition level of the other teams against the dominant team's decreases. Birkhhuser and Kaserer (2016), in their research examining the seasons between 2004/2005 and 2013/2014, stated that they found a reduction in competition in all big five leagues and that this might be due to the presence of investors. They argue that football clubs that receive investor cash flow can increase the market value of their rosters, thus achieving more points per game and a higher probability of winning.…”

Section: Discussionmentioning

confidence: 99%

“…Goossens (2006) argues that Champions League payments trigger a decline in the competitive balance and play an essential role in creating wealthy clubs at the top. Birkhhuser and Kaserer (2016), on the other hand, suggest that national football federations should seek alternative ways to maintain or improve both the attractiveness and international competitiveness of their leagues and that national football clubs should benefit from additional cash inflows that will enable them to be more competitive in the international arena.…”

Section: Discussionmentioning

confidence: 99%

“…C5ICB refers to the share of the top five teams in league finishing points in a given season. (Birkhhuser & Kaserer, 2016). C5 ratio compared with the ideal case to include the effect of changes on the league's size; C5ICB is calculated using the following formula.…”

Section: Five Club Index Of Competitive Balancementioning

confidence: 99%

See 2 more Smart Citations

Investigation of the Competitive Balance in the Europe's Big Five Leagues and the Turkish Super League: The Ten Seasons Between 2011/2012-2020/2021

Savaş

2022

Ankara Üniversitesi Beden Eğitimi Ve Spor Yüksekokulu SPORMETRE Beden Eğitimi Ve Spor Bilimleri Dergisi

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The balance of competition is one of the most critical factors in increasing the attractiveness of football. Football clubs have to have high competitive power, primarily to compete internationally. This direction examines the balance of competition in the last ten seasons in Europe's Big Five Leagues and the Turkish Super League. The study used an extensive data set covering the league scores of 196 clubs in the last ten seasons and C5, C5ICB, HHI, and HICB indices between 2011/12-2020/21 seasons in Europe's Big Five and Turkish Super League analysis of the data. It has been determined that there has been a general decrease in the competitive balance of the last ten seasons in Europe's Big Five Leagues, while an increase has been observed in the Turkish Super League. Competition in Italy, Spain, Germany and England Leagues is lower than in Turkey and France. It can be said that the Turkish Super League is more balanced in terms of competitiveness compared to the Big Five Leagues. It has been concluded that the teams' economic situation can be considered a priority factor in determining the competitive balance. Super League clubs have substantial financial resources, incorporation, development of youth development systems (infrastructure), managerial measures to increase broadcasting, matchday and commercial revenues, corporate governance principles, and different incomes to be competitive and have a solid economic structure. It is recommended to cooperate with professionals in the creation of resources.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

See 1 more Smart Citation

Investigation of the Competitive Balance in the Europe's Big Five Leagues and the Turkish Super League: The Ten Seasons Between 2011/2012-2020/2021

Savaş

2022

Ankara Üniversitesi Beden Eğitimi Ve Spor Yüksekokulu SPORMETRE Beden Eğitimi Ve Spor Bilimleri Dergisi

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“…Winning a match can increase the club’s stock price and make it a valuable asset, and on the other hand, losing a match can cause depreciation of the stock leading to millions of dollars of loss. Because investing in soccer club markets is on the rise (Birkhäuser et al, 2015), researchers have been studying the impact of the team’s match performance on the club’s stock price. Arnold (1991) performed one of the earliest empirical studies on the relation between the sports team performance and their financial status, and found that there is a strong correlation between the revenues of the English soccer clubs and their team performance from 1905 to 1985.…”

Section: Introductionmentioning

confidence: 99%

Can Social Media Predict Soccer Clubs’ Stock Prices? The Case of Turkish Teams and Twitter

et al. 2021

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Finance literature in sports focuses on three main methods of stock price prediction in soccer: based on match results, pre-match expectations, or match importance. For pre-match expectations, betting odds is commonly used as the indicator of investors’ sentiments. We propose to include Twitter data as another indicator of this variable, and analyze the links among soccer match results, sentiments, and stock returns of the four major Turkish soccer teams. Our results show that social media can be a strong indicator of pre-match expectations and investors’ sentiments in stock price prediction.

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“…Especially by Deloitte, which publishes regularly cited reviews on football finance. See the 2015 report at http://www2.deloitte.com/uk/en/pages/sports--business--group/articles/annual--review--of--football--finance.html.See also the use of CAGR data inBirkhauser at al. (2015).…”

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confidence: 99%

Off Pitch: Football's Financial Integrity Weaknesses, and How to Strengthen Them

Andrews

Harrington

2016

SSRN Journal

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Men's professional football is the biggest sport in the world, producing (by our estimate) US $33 billion a year. All is not well in the sector, however, with regular scandals raising questions about the role of money in the sport. The 2015 turmoil around FIFA is obviously the most well known example, creating a crisis in confidence in the sector. This study examines these questions, and the financial integrity weaknesses they reveal; it also offers ideas to strengthen the weaknesses. The study argues that football's financial integrity weaknesses extend far beyond FIFA. These weaknesses have emerged largely because the sector is dominated by a small elite of clubs, players and owners centered in Europe's top leagues. The thousands of clubs beyond this elite have very little resources, constituting a vast base of 'have-nots' in football's financial pyramid. This pyramid developed in recent decades, fuelled by concentrated growth in new revenue sources (like sponsorships, and broadcasting). The growth has also led to increasingly complex transactions-in player transfers, club ownership and financing (and more)-and an expansion in opportunities for illicit practices like match-fixing, money laundering and human trafficking. We argue that football's governing bodies-including FIFA-helped establish this pyramid. We explore the structural weaknesses of this pyramid by looking at five pillars of financial integrity (using data drawn from UEFA, FIFA, clubs, primary research, and interviews). In the first pillar of Financial Transparency and Literacy we find that a vast majority of the world's clubs and governing bodies publish no financial data, leaving a vast dark space with no transparency. In the second pillar of Financial Sustainability we estimate that a majority of global clubs and governing bodies are at 'medium to high risk' of financial failure. We find, additionally, that European tax debts have grown despite Financial Fair Play, and confederations and FIFA contribute to a pattern of weak Fiscal Responsibility. We then create a new metric of Financial Concentration and find that the football sector is at 'high risk' of over-concentration, which poses existential questions for many clubs and even leagues. In the final pillar of Social Responsibility and Moral Reputation, we find that football's governing bodies face a crisis of legitimacy stemming from a failure to tackle moral turpitude, set standards and regulate effectively. We suggest a set of reforms to restructure FIFA in particular, separating its functions and stressing its regulatory role.

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Investor Presence and Competition in Major European Football Leagues

Cited by 5 publications

References 26 publications

Investigation of the Competitive Balance in the Europe's Big Five Leagues and the Turkish Super League: The Ten Seasons Between 2011/2012-2020/2021

Investigation of the Competitive Balance in the Europe's Big Five Leagues and the Turkish Super League: The Ten Seasons Between 2011/2012-2020/2021

Can Social Media Predict Soccer Clubs’ Stock Prices? The Case of Turkish Teams and Twitter

Off Pitch: Football's Financial Integrity Weaknesses, and How to Strengthen Them

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