Financial mismanagement in the football industry - Solutions and future business operations

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Volume Title

School of Business | Bachelor's thesis

Date

2021

Department

Major/Subject

Mcode

Degree programme

(Mikkeli) Bachelor’s Program in International Business

Language

en

Pages

50

Series

Abstract

Author: Atte Auvinen Title of thesis: FINANCIAL MISMANAGEMENT IN THE FOOTBALL INDUSTRY – SOLUTIONS AND FUTURE BUSINESS OPERATIONS Date: 5 April 2021 Degree: Bachelor of Science in Economics and Business Administration Supervisor: Marta Zieba Objectives The main objective of this study was to identify areas of financial mismanagement in the football industry, introduce previous solutions, and discuss possible improvements and new solutions. Additionally, to create a basic understanding of the industry, a throughout introduction is made by identifying the business models, structure, and nature of football clubs. Summary The study was conducted through literature, official documents from the regulatory bodies (UEFA, Deloitte), and data from different databases (UEFA, transfermarkt.com). These were used to identify the areas of financial mismanagement, and to introduce the existing regulations, which were used as a base for further discussion on possible solutions. Conclusions Based on the literature and current financial situation of football clubs, it can be concluded that football clubs have to choose between sporting success and financial success, and live in a hypercompetitive environment, where they generate negligible profits and are always close to insolvency. Discussed solutions include the introduction of a legal body with control over the European football clubs, which creates the possibility for more coherent regulations, or even for a hard salary cap. Keywords: Financial Fair Play Regulations, financial mismanagement, football industry Language: English Grade:

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Thesis advisor

Zieba, Marta

Keywords

Financial Fair Play Regulations, Financial mismanagement, The football industry, Insolvency

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