Financial Fair Play's Impact on the Economic and Financial Sustainability of European Football Clubs

Loading...
Thumbnail Image

URL

Journal Title

Journal ISSN

Volume Title

School of Business | Bachelor's thesis

Date

2024

Major/Subject

Mcode

Degree programme

Taloustiede

Language

en

Pages

24

Series

Abstract

The aim of this literature review is to study the impact of the Financial Fair Play (FFP) Regulations imposed by UEFA on the Economic and Financial Sustainability of European Football Clubs. These are measured through several factors, including a Multiple Criterion Decision Analysis using several financial ratios, and competitive balance using ELO and financial indicators. The empirical work reviewed offers nuanced results. Both simulations and empirical evidence show an increase in financial sustainability but indicate that competitive balance is disrupted as a result of FFP. I conclude that FFP has shown beneficial signs to European Football Clubs. However, due to the indirect negative impacts on competitive balance and other negative incentives that arise, several alternative regulation styles or details must be implemented.

Description

Thesis advisor

Kitti, Mitri

Keywords

Financial Fair Play (FFP), football, economic sustainability, financial sustainability

Other note

Citation