UEFA Financial Fair Play’s effect on the salary-to-revenue ratios of European professional football clubs – evidence from top five football leagues in Europe

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dc.contributor Aalto University en
dc.contributor Aalto-yliopisto fi
dc.contributor.advisor Huikku, Jari
dc.contributor.author Heiskanen, Antti
dc.date.accessioned 2017-06-13T08:12:51Z
dc.date.available 2017-06-13T08:12:51Z
dc.date.issued 2017
dc.identifier.uri https://aaltodoc.aalto.fi/handle/123456789/26796
dc.description.abstract Objectives of the study This study examines whether the adoption of UEFA’s Financial Fair Play regulation has re-duced the salaries in relation to revenues in the top five football leagues in Europe. The study applies Soft Budget Constraint theory to explain the peculiar operating environment of Euro-pean professional football, and explores whether the Break-Even requirement of Financial Fair Play regulation has shifted the European footballing environment towards financially re-sponsible behaviour. Data and methodology The study is quantitative in nature and applies robust pooled OLS regression to detect chang-es in salary-to-revenue –ratios after the introduction of Financial Fair Play regulation. The sample consists of 79 football clubs from England, Spain, Germany, Italy and France between seasons 2008/09 –2014/15 and the data is mainly obtained from ORBIS –database. In case of missing data, the dataset has been complemented with data from the annual reports of the clubs. Results The findings of this study suggest that the Financial Fair Play regulation has reduced salaries in relation to revenues in the top five leagues in Europe. More specifically, the salary-to-revenue –ratios have been reduced the most in Spain and in England, whereas the regulation has not had any effect in Germany. Furthermore, teams that have not qualified for UEFA’s competitions, namely Champions League and Europa League, have reduced their salary-to-revenue –ratios remarkably. No such effect could be found on teams that have qualified for international football. The results of this study indicate that the Financial Fair Play regulation has shifted the Soft Budget Constraint environment of European professional football towards more financially responsible behaviour. en
dc.format.extent 81
dc.language.iso en en
dc.title UEFA Financial Fair Play’s effect on the salary-to-revenue ratios of European professional football clubs – evidence from top five football leagues in Europe en
dc.type G2 Pro gradu, diplomityö fi
dc.contributor.school Kauppakorkeakoulu fi
dc.contributor.school School of Business en
dc.contributor.department Laskentatoimen laitos fi
dc.subject.keyword financial fair play en
dc.subject.keyword break-even requirement en
dc.subject.keyword UEFA en
dc.subject.keyword salary-to-revenue –ratio en
dc.subject.keyword soft budget constraint en
dc.subject.keyword football en
dc.subject.keyword soccer en
dc.identifier.urn URN:NBN:fi:aalto-201706135555
dc.type.ontasot Master's thesis en
dc.type.ontasot Maisterin opinnäyte fi
dc.programme Accounting en
dc.subject.helecon laskentatoimi fi
dc.subject.helecon liiketalous fi
dc.subject.helecon urheilu fi
dc.subject.helecon työntekijät fi
dc.subject.helecon palkka fi
dc.subject.helecon kustannukset fi
dc.subject.helecon liikevaihto fi
dc.ethesisid 15004
dc.location P1 I fi


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