IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpol/v2021y2021i1id1306p73-98.html
   My bibliography  Save this article

Jsou pravidla finanční fair play spravedlivá a udržitelná? Případ anglické Premier League
[Are the Financial Fair Play Regulations Fair and Sustainable? Case of English Premier League]

Author

Listed:
  • David Procházka
  • Šimon Vanc

Abstract

The paper investigates whether the Financial Fair Play Regulations have contributed to a sus- tainable economic framework of club football while retaining equal opportunities for sport success. Mutual relations among economic strength of football clubs, their financial aggres-siveness in investments into squads and league results after the implementation of the FFP rules are assessed. Using a dataset of the English Premier League clubs over 2011-2017, empirical data reveal that the league is economically sustainable in the long run. However, profitability improves by increasing broadcasting revenue, and clubs' profits are driven by their ownership structure rather than FFP. Furthermore, we identify a statistically signifi-cant financial aggressiveness in spending on squads. A regulation aiming at securing sustain-able economic development may, thus, curtail sport competitiveness of smaller clubs and boost dominance of teams that are economically strong around the time of regulation launch.

Suggested Citation

  • David Procházka & Šimon Vanc, 2021. "Jsou pravidla finanční fair play spravedlivá a udržitelná? Případ anglické Premier League [Are the Financial Fair Play Regulations Fair and Sustainable? Case of English Premier League]," Politická ekonomie, Prague University of Economics and Business, vol. 2021(1), pages 73-98.
    • Handle: RePEc:prg:jnlpol:v:2021:y:2021:i:1:id:1306:p:73-98
    DOI: 10.18267/j.polek.1306
    as

    Download full text from publisher

    File URL: http://polek.vse.cz/doi/10.18267/j.polek.1306.html
    Download Restriction: free of charge
    File URL: http://polek.vse.cz/doi/10.18267/j.polek.1306.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.polek.1306?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    football; FFP rules; competitiveness; sustainable development; revenue; profits; Premier League;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • Z23 - Other Special Topics - - Sports Economics - - - Finance
    • Z28 - Other Special Topics - - Sports Economics - - - Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlpol:v:2021:y:2021:i:1:id:1306:p:73-98. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.