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Financial fair play's impact on the economic and financial sustainability of European football clubs
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School of Business |
Bachelor's thesis
Authors
Kumar, Karthik
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Mcode
Degree programme
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.