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Do Soccer Players Contribute to Preserving Football Clubs' Financial Performance Sustainability?

Author

Listed:
  • Zeal Latu Landang

    (Universitas Tanjungpura, Pontianak, Indonesia)

  • Umiaty Hamzani

    (Universitas Tanjungpura, Pontianak, Indonesia)

  • Kristina Yunita

    (Universitas Tanjungpura, Pontianak, Indonesia)

Abstract

Today, football has transformed from a hobby into a sport capable of generating high economic value. Football players are recognized formally and informally as intangible assets in the football business. The previous studies confirm that owning high-quality and well-known players can significantly increase club revenue. The Financial Sustainability Regulation mandates clubs to maintain financial stability, ensuring a balance between income and expenses and encouraging clubs to produce top players from their academies. This study evaluates the financial performance of professional football clubs and examines players' contributions to their sustainability, specifically focusing on Manchester United, Manchester City, Arsenal, Liverpool, and Tottenham Hotspur. Authors analyze various financial metrics, such as ticket sales, sponsorships, and broadcasting rights, to assess the clubs' financial health through a qualitative descriptive lens. The research uses secondary data, namely the annual financial statements of the clubs during the 2019-2023 period. The financial reports were obtained from the official websites of the respective clubs. The findings indicate that sound financial management is essential for ensuring stability and maintaining a competitive advantage. Additionally, the research emphasizes the importance of players in fostering club sustainability through their performance on the field and their commercial appeal. High-profile players who perform consistently enhance merchandise sales, attract sponsorships, and grow the fan base, positively impacting the clubs' financial sustainability. The study contributes to the academic field by providing guidelines for the accounting treatment of football players and financial management practices in the football industry.

Suggested Citation

  • Zeal Latu Landang & Umiaty Hamzani & Kristina Yunita, 2024. "Do Soccer Players Contribute to Preserving Football Clubs' Financial Performance Sustainability?," Oblik i finansi, Institute of Accounting and Finance, issue 3, pages 142-153, September.
  • Handle: RePEc:iaf:journl:y:2024:i:3:p:142-153
    DOI: 10.33146/2307-9878-2024-3(105)-142-153
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    More about this item

    Keywords

    financial performance; football club; intangible assets; player contribution; financial sustainability;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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