Assessing the Financial Performance of the Greek Football Clubs

Yıl 2024, Cilt: 6 Sayı: 2, 129 – 142, 30.06.2024

Gerasımos Rompotıs

https://doi.org/10.54821/uiecd.1447823

Öz

Bu çalışma, Yunanistan’ın en üst düzey futbol liginden yedi önemli kulübün finansal performansını, 2015-16 ile 2021-22 sezonları arasındaki dönem boyunca korelasyon ve regresyon analizleri kullanarak değerlendirmektedir. Finansal performans, aktif getiri oranı (ROA), özsermaye getiri oranı (ROE) ve vergi öncesi karın işletme gelirine oranı olan kar marjı gibi üç farklı alternatif göstergeyle ölçülmektedir. Çalışma, finansal performansı belirleyen faktörler olarak sadece finansal değişkenleri ele almaktadır, bunlar arasında kulüplerin büyüklüğü, likidite durumu, kaldıraç oranı, etkinlik ve nakit akışı etkinliği yer almaktadır. Bulgular, incelenen kulüplerin yüksek kaldıraçlı olduğunu, likidite sorunları yaşadıklarını ve önemli ölçüde yıllık ve birikmiş zararları rapor ettiklerini ortaya koymaktadır. Yunan futbol kulüplerinin finansal performansını etkileyebilecek faktörler üzerine yapılan analiz, kulüplerin büyüklüğünün, likidite durumunun, kaldıraç oranının, etkinliğinin ve aktiflerini nakit üretmek için kullanma becerilerinin finansal performans üzerindeki olumlu veya olumsuz etkilerini vurgulamaktadır.

Anahtar Kelimeler

Finansal Performans, Futbol Kulüpleri, Likidite, Kaldıraç, Etkinlik

Kaynakça

  • Barajas, A., Jardon, C., & Crolley, L. (2005). Does sports performance influence revenues and economic results in Spanish football? working paper, available on https://papers.ssrn.com.
  • Brewer, E. III., & Jagtiani, J. (2013). How much did banks pay to become too‐big‐to‐fail and to become systemically important. Journal of Financial Services Research, 43(1), 1‐35.
  • Carlsson-Wall, M., Kraus, K., & Messner, M. (2016). Performance measurement systems and the enactment of different institutional logics: Insights from a football organization. Management Accounting Research, 32, 45-61.
  • Chell, E., & Baines, S. (2000). Networking, entrepreneurship and microbusiness between small and large firms’ behavior. Entrepreneurship and Regional Development, 12, 95‐206.
  • Deloitte. (2023). Annual review of football finance 2023. available on: https://www2.deloitte.com/uk/en/pages/sports-business-group/articles/annual-review-of-football-finance-europe.
  • Dimitropoulos, P.E. (2009). Profitability of the Greek football clubs: implications for financial decisions making. Business Intelligence Journal 2(1), 159-169.
  • Dimitropoulos, P.E. (2010). The financial performance of the Greek football clubs. Choregia Sport Management International Journal, 6(1), 5-27.
  • Dimitropoulos, P.E., & Alexopoulos, P. (2014). Attendance, revenues, profits and the on-field performance of the Greek football clubs. International Journal of Scientific Engineering and Research, 2(9), 33-39.
  • Dimitropoulos, P.E., & Limperopoulos, V. (2014). Player contracts, athletic and financial performance of the Greek football clubs. Global Business and Economics Review, 16 (2), 123-141.
  • Dimitropoulos, P.E., & Tsagkanos, A. (2012). Financial performance and corporate governance in the European football industry. International Journal of Sport Finance, 7(4), 280-308.
  • Di Simone, L., & Zanardi, D. (2021). On the relationship between sport and financial performances: An empirical investigation. Managerial Finance, 47(6), 812-824.
  • Dogan, M., Kevser, M., & Sarigul, S.S. (2021). Analysis of the relationship between notifications of football clubs and stock returns using event study method. Journal of Social Economic Research, 21(1), 66-75.
  • Evans, R., Walters, G., & Tacon, R. (2019). Assessing the effectiveness of financial regulation in the English football league: “The dog that didn’t bark”. Accounting, Auditing & Accountability Journal, 32(7), 1876-1897.
  • Fernández-Villarino, R., & Domínguez-Gómez, J.A. (2022). The financial impact of the financial fair play policy on Spanish football. Sport, Business & Management, 12(2), 171-188.
  • Ferri, L., Macchioni, R., Maffei, M., & Zampella, A. (2017). Financial versus sports performance: The missing link. International Journal of Business & Management, 12(3), 36-48.
  • Fraile, I.A., Serrano, R., & Dimitropoulos, P.E. (2017). Ownership structure and financial performance in European football. Corporate Governance, 17(3), 511-523.
  • Javed, Z.H., Rao, H., Akram, B., & Nazir, M.F. (2015). Effect of financial leverage on performance of the firms: Empirical evidence from Pakistan. SPOUDAI Journal of Economics & Business, 65(1-2), 87-95.
  • Holzmayer, F., & Schmidt, S.L. (2020). Financial performance and corporate diversification strategies in professional football – Evidence from the English Premier League. Sport, Business & Management, 10(3), 291-315.
  • Ika, S.R., Nugroho, J.P., Udin, K., & Koenti, I.J. (2020). Assessing the financial performance of English football clubs: Arsenal and Manchester City. Proceedings of the 3rd International Conference of Banking, Accounting, Management & Economics.
  • Kevser, M., & Dogan, M. (2022). Comparative analysis of the financial performance of 5 major football clubs in UEFA ranking. Accounting Science World Journal, 24(2), 436-460.
  • Khan, M.N., Parksh, R., Shamim, M., & Ali, S. (2021). Does audit quality matter for firm performance? Empirical evidence from Pakistani public listed companies. Elementary Education Online, 20(5), 3953-3960.
  • Kimondo, C. N., Irungu, M., & Obanda, M. (2016). The impact of liquidity on the financial performance of the nonfinancial firms quoted on the Nairobi Securities Exchange. Researchjournali’s Journal of Accounting, 4(2), 1-12.
  • Martín-Magdalena, J., Martínez-de-Ibarreta, C., Gonzalo-Angulo, J.A., & García Domonte, A. (2023). The impact of financial fair play on the financial performance of Spanish professional football: Do the biggest clubs behave better?. Sport, Business & Management, 13(5), 601-621.
  • Miragaia, D., Ferreira, J., Carvalho, A., & Ratten, V. (2019). Interactions between financial efficiency and sports performance: Data for a sustainable entrepreneurial approach of European professional football clubs. Journal of Entrepreneurship & Public Policy, 8(1), 84-102.
  • Musah, M., & Kong, Y. (2019). The relationship between liquidity and the financial performance of non-financial firms listed on the Ghana Stock Exchange (GSE). International Journal of Advanced Research in Management & Social Sciences, 8(4), 1-34.
  • Obida S.S., & Owolabi S.A. (2012). Liquidity management and corporate profitability: Case study of selected manufacturing companies listed on the Nigerian Stock Exchange. Business Management Dynamics, 2(2), 10-25.
  • Rompotis, G.G. (2024). The financial performance of the English football clubs. International Journal of Finance Research, 5(2), 181-203.
  • Ruta, D., Lorenzon, L., & Sironi, E. (2020). The relationship between governance structure and football club performance in Italy and England. Sport, Business & Management, 10(1), 17-37.
  • Scafarto, V., & Dimitropoulos, P.E. (2018). Human capital and financial performance in professional football: The role of governance mechanisms. Corporate Governance, 18(2), 289-316.
  • Szymanski, S., & Smith, R. (1997). The English football industry: Profit, performance and industrial structure. International Review of Applied Economics, 11(1), 135-153.
  • Wilson, R., Plumley, D., & Ramch&ani, G. (2013). The relationship between ownership structure and club performance in the English Premier League. Sport, Business & Management: An International Journal, 3(1), 19-36.
  • Yameen, M., Farhan, N.H.S., & Tabash, M. (2019). The impact of liquidity on firms’ performance: Empirical investigation from Indian pharmaceutical companies. Academic Journal of Interdisciplinary Studies, 8(3), 212-220.
  • Zygmunt, J. (2013). Does liquidity impact on profitability? A Case of Polish listed IT companies. Conference of Informatics and Management Sciences, Poland, March 25-29.

Assessing the Financial Performance of the Greek Football Clubs

Yıl 2024, Cilt: 6 Sayı: 2, 129 – 142, 30.06.2024

Gerasımos Rompotıs

https://doi.org/10.54821/uiecd.1447823

Öz

This study evaluates the financial performance of seven major football clubs from the top division of Greece over a period which spans from season 2015-16 to season 2021-22 with correlation and regression analysis. Financial performance is expressed in three alternative ways, i.e., the return on assets (ROA), return on equity (ROE), and profit margin, which is computed as ratio of the profit before tax to total operating revenue. Purely financial factors are considered as determinative variables of performance including the size of the clubs, their liquidity, leverage, efficiency and cash flow efficiency. The results reveal indicate that the clubs under investigation are highly leveraged and have poor liquidity, while they present extensive annual and accumulated losses. On the factors that can affect the financial performance of the Greek football clubs, our analysis accentuates that the size of the football entreprises, along with the degree of liquidity, leverage, efficiency and their ability to use their assets to generate cash can affect financial performance, either in a positive or a negative way.

Anahtar Kelimeler

Financial Performance, Football Clubs, Liquidity, Leverage, Efficiency

Kaynakça

  • Barajas, A., Jardon, C., & Crolley, L. (2005). Does sports performance influence revenues and economic results in Spanish football? working paper, available on https://papers.ssrn.com.
  • Brewer, E. III., & Jagtiani, J. (2013). How much did banks pay to become too‐big‐to‐fail and to become systemically important. Journal of Financial Services Research, 43(1), 1‐35.
  • Carlsson-Wall, M., Kraus, K., & Messner, M. (2016). Performance measurement systems and the enactment of different institutional logics: Insights from a football organization. Management Accounting Research, 32, 45-61.
  • Chell, E., & Baines, S. (2000). Networking, entrepreneurship and microbusiness between small and large firms’ behavior. Entrepreneurship and Regional Development, 12, 95‐206.
  • Deloitte. (2023). Annual review of football finance 2023. available on: https://www2.deloitte.com/uk/en/pages/sports-business-group/articles/annual-review-of-football-finance-europe.
  • Dimitropoulos, P.E. (2009). Profitability of the Greek football clubs: implications for financial decisions making. Business Intelligence Journal 2(1), 159-169.
  • Dimitropoulos, P.E. (2010). The financial performance of the Greek football clubs. Choregia Sport Management International Journal, 6(1), 5-27.
  • Dimitropoulos, P.E., & Alexopoulos, P. (2014). Attendance, revenues, profits and the on-field performance of the Greek football clubs. International Journal of Scientific Engineering and Research, 2(9), 33-39.
  • Dimitropoulos, P.E., & Limperopoulos, V. (2014). Player contracts, athletic and financial performance of the Greek football clubs. Global Business and Economics Review, 16 (2), 123-141.
  • Dimitropoulos, P.E., & Tsagkanos, A. (2012). Financial performance and corporate governance in the European football industry. International Journal of Sport Finance, 7(4), 280-308.
  • Di Simone, L., & Zanardi, D. (2021). On the relationship between sport and financial performances: An empirical investigation. Managerial Finance, 47(6), 812-824.
  • Dogan, M., Kevser, M., & Sarigul, S.S. (2021). Analysis of the relationship between notifications of football clubs and stock returns using event study method. Journal of Social Economic Research, 21(1), 66-75.
  • Evans, R., Walters, G., & Tacon, R. (2019). Assessing the effectiveness of financial regulation in the English football league: “The dog that didn’t bark”. Accounting, Auditing & Accountability Journal, 32(7), 1876-1897.
  • Fernández-Villarino, R., & Domínguez-Gómez, J.A. (2022). The financial impact of the financial fair play policy on Spanish football. Sport, Business & Management, 12(2), 171-188.
  • Ferri, L., Macchioni, R., Maffei, M., & Zampella, A. (2017). Financial versus sports performance: The missing link. International Journal of Business & Management, 12(3), 36-48.
  • Fraile, I.A., Serrano, R., & Dimitropoulos, P.E. (2017). Ownership structure and financial performance in European football. Corporate Governance, 17(3), 511-523.
  • Javed, Z.H., Rao, H., Akram, B., & Nazir, M.F. (2015). Effect of financial leverage on performance of the firms: Empirical evidence from Pakistan. SPOUDAI Journal of Economics & Business, 65(1-2), 87-95.
  • Holzmayer, F., & Schmidt, S.L. (2020). Financial performance and corporate diversification strategies in professional football – Evidence from the English Premier League. Sport, Business & Management, 10(3), 291-315.
  • Ika, S.R., Nugroho, J.P., Udin, K., & Koenti, I.J. (2020). Assessing the financial performance of English football clubs: Arsenal and Manchester City. Proceedings of the 3rd International Conference of Banking, Accounting, Management & Economics.
  • Kevser, M., & Dogan, M. (2022). Comparative analysis of the financial performance of 5 major football clubs in UEFA ranking. Accounting Science World Journal, 24(2), 436-460.
  • Khan, M.N., Parksh, R., Shamim, M., & Ali, S. (2021). Does audit quality matter for firm performance? Empirical evidence from Pakistani public listed companies. Elementary Education Online, 20(5), 3953-3960.
  • Kimondo, C. N., Irungu, M., & Obanda, M. (2016). The impact of liquidity on the financial performance of the nonfinancial firms quoted on the Nairobi Securities Exchange. Researchjournali’s Journal of Accounting, 4(2), 1-12.
  • Martín-Magdalena, J., Martínez-de-Ibarreta, C., Gonzalo-Angulo, J.A., & García Domonte, A. (2023). The impact of financial fair play on the financial performance of Spanish professional football: Do the biggest clubs behave better?. Sport, Business & Management, 13(5), 601-621.
  • Miragaia, D., Ferreira, J., Carvalho, A., & Ratten, V. (2019). Interactions between financial efficiency and sports performance: Data for a sustainable entrepreneurial approach of European professional football clubs. Journal of Entrepreneurship & Public Policy, 8(1), 84-102.
  • Musah, M., & Kong, Y. (2019). The relationship between liquidity and the financial performance of non-financial firms listed on the Ghana Stock Exchange (GSE). International Journal of Advanced Research in Management & Social Sciences, 8(4), 1-34.
  • Obida S.S., & Owolabi S.A. (2012). Liquidity management and corporate profitability: Case study of selected manufacturing companies listed on the Nigerian Stock Exchange. Business Management Dynamics, 2(2), 10-25.
  • Rompotis, G.G. (2024). The financial performance of the English football clubs. International Journal of Finance Research, 5(2), 181-203.
  • Ruta, D., Lorenzon, L., & Sironi, E. (2020). The relationship between governance structure and football club performance in Italy and England. Sport, Business & Management, 10(1), 17-37.
  • Scafarto, V., & Dimitropoulos, P.E. (2018). Human capital and financial performance in professional football: The role of governance mechanisms. Corporate Governance, 18(2), 289-316.
  • Szymanski, S., & Smith, R. (1997). The English football industry: Profit, performance and industrial structure. International Review of Applied Economics, 11(1), 135-153.
  • Wilson, R., Plumley, D., & Ramch&ani, G. (2013). The relationship between ownership structure and club performance in the English Premier League. Sport, Business & Management: An International Journal, 3(1), 19-36.
  • Yameen, M., Farhan, N.H.S., & Tabash, M. (2019). The impact of liquidity on firms’ performance: Empirical investigation from Indian pharmaceutical companies. Academic Journal of Interdisciplinary Studies, 8(3), 212-220.
  • Zygmunt, J. (2013). Does liquidity impact on profitability? A Case of Polish listed IT companies. Conference of Informatics and Management Sciences, Poland, March 25-29.

Toplam 33 adet kaynakça vardır.

Ayrıntılar

Birincil Dil İngilizce
Konular Finansal Piyasalar ve Kurumlar
BölümAraştırma Makaleleri
Yazarlar

Gerasımos Rompotıs NATIONAL AND KAPODISTRIAN UNIVERSITY OF ATHENS Greece

Yayımlanma Tarihi30 Haziran 2024
Gönderilme Tarihi6 Mart 2024
Kabul Tarihi23 Haziran 2024
Yayımlandığı Sayı Yıl 2024 Cilt: 6 Sayı: 2

Kaynak Göster

APARompotıs, G. (2024). Assessing the Financial Performance of the Greek Football Clubs. International Journal of Business and Economic Studies, 6(2), 129-142. https://doi.org/10.54821/uiecd.1447823

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