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Impact of on‐field football success on the off‐field financial performance of AFL football clubs

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  • Matt Pinnuck
  • Brad Potter

Abstract

In this study, we examine the factors that contribute to the financial performance of clubs in the Australian Football League over the period from 1993 to 2002. Primarily, we examine the association between the on‐field football success of clubs and their level of off‐field financial performance. We find that match attendance is positively related to both short‐term and long‐term success of football clubs and also to the uncertainty as to the match outcome (i.e. the expected closeness of the match). We also find that club membership is highly persistent and is positively related to both the past football success of the club and the marketing expense incurred. Finally, we find that there is a significant association between the level of marketing revenue and the level of on‐field success in the prior 2 years.

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  • Matt Pinnuck & Brad Potter, 2006. "Impact of on‐field football success on the off‐field financial performance of AFL football clubs," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 46(3), pages 499-517, September.
    • Handle: RePEc:bla:acctfi:v:46:y:2006:i:3:p:499-517
    DOI: 10.1111/j.1467-629X.2006.00179.x
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    References listed on IDEAS

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    1. Jeffery Borland, 2003. "Demand for Sport," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 19(4), pages 478-502, Winter.
    2. Peter Dawson & Stephen Dobson & Bill Gerrard, 2000. "Estimating Coaching Efficiency in Professional Team Sports: Evidence from English Association Football," Scottish Journal of Political Economy, Scottish Economic Society, vol. 47(4), pages 399-421, September.
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    Cited by:

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    2. Emilios Galariotis & Christophe Germain & Constantin Zopounidis, 2018. "A combined methodology for the concurrent evaluation of the business, financial and sports performance of football clubs: the case of France," Annals of Operations Research, Springer, vol. 266(1), pages 589-612, July.
    3. Aniruddha Dutta, 2019. "Capacity Allocation of Game Tickets Using Dynamic Pricing," Data, MDPI, vol. 4(4), pages 1-12, October.
    4. Chih-Hai Yang & Hsuan-Yu Lin & Chiang-Ping Chen, 2014. "Measuring the efficiency of NBA teams: additive efficiency decomposition in two-stage DEA," Annals of Operations Research, Springer, vol. 217(1), pages 565-589, June.
    5. Keith Jakee & Martin Kenneally & Hamish Mitchell, 2010. "Asymmetries in scheduling slots and game-day revenues: An example from the Australian Football League," Sport Management Review, Taylor & Francis Journals, vol. 13(1), pages 50-64, January.
    6. Adrian R. Bell & Chris Brooks & David Matthews & Charles Sutcliffe, 2012. "Over the moon or sick as a parrot? The effects of football results on a club's share price," Applied Economics, Taylor & Francis Journals, vol. 44(26), pages 3435-3452, September.
    7. Jason P. Berkowitz & Craig A. Depken, 2018. "A rational asymmetric reaction to news: evidence from English football clubs," Review of Quantitative Finance and Accounting, Springer, vol. 51(2), pages 347-374, August.
    8. Jeff Borland & Mark Chicu & Robert D. Macdonald, 2009. "Do Teams Always Lose to Win? Performance Incentives and the Player Draft in the Australian Football League," Journal of Sports Economics, , vol. 10(5), pages 451-484, October.
    9. Antonio Samagaio & Eduardo Couto & Jorge Caiado, 2009. "Sporting, financial and stock market performance in English football: an empirical analysis of structural relationships," CEMAPRE Working Papers 0906, Centre for Applied Mathematics and Economics (CEMAPRE), School of Economics and Management (ISEG), Technical University of Lisbon.

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