Effectiveness Of The Financial Instruments That Are Used By Football Clubs

The UEFA FFP Regulations is about improving the financial health of European football club (UEFA, 2014). The regulation was implemented at the end of 2012 season where all clubs had to abide to the rules and regulations to obtain the license to play in the UEFA Champions League (UEFA, 2010). Deloitte (2014a, p. 2) refers the FFP break-even requirement as ‘a change potentially as profound as that brought about by the Bosman ruling.’

(iv) The company can form tie-ups with the popular European football clubs like Manchester United, Barcelona,

The UEFA FFP Regulations is about improving the financial health of European football club (UEFA, 2014). The regulation have came in force at the end of 2012 season where all clubs had to abide to the rules and regulations to obtain the license to play in the UEFA Champions League (UEFA, 2010). Deloitte (2014a, p. 2) refers the FFP break-even requirement as ‘a change potentially as profound as that brought about by the Bosman ruling.’

With the number of clubs which have participated in the UEFA competition over the past 12 years, a sample size of 6 teams will be selected for this dissertation. These clubs who must abide by Financial Fair Play regulations to participate in their competitions are Arsenal, Manchester United, Chelsea, Manchester City, Liverpool and Tottenham. It is also important to note that all clubs selected in this analysis has expense greater than €45 million, as UEFA’s break-even rule is subject to an exception of an acceptable deviation up to €45 million if the shortfall is covered by equity investment. As the Financial Fair Play has been in existence since 2010, financial statements and balance sheets for the selected clubs and the league have been

Although, the case study of Manchester United gives us a good example of a brand’s ability to globalize, it does not give us a clear picture into how a league as a whole accomplishes these same goals. To get this clear picture of a successful global soccer league we can review a case study by Matthew Holt that examines the UEFA Champions League and its ability to succeed. The UEFA Champions League(UCL) was established after the UEFA European cup started to see more revenue increases based on the increase in television and digital technologies. (Holt, 2007) The goal of the UCL was to increase revenue through a newly structured European club soccer league. The first way that UCL accomplished this was through centralized marketing. This was accomplished through selling the television rights as the UCL brand rather than allowing the clubs to individually sell the rights to the games. This increased the value of the television rights and in turn increased the profitability of the clubs. (Holt, 2007) UEFA sold this UCL brand

MLS’s TV revenues would better their financial position. However, they cannot command higher broadcast deals, without more TV interest in the sport, which is unlikely unless MLS can attract more high-profile players. The discrepancy in average salaries between MLS and International teams is illustrated between Exhibits 5 & 6. For the most part, MLS is unable to offer competitive enough salaries to entice international stars. Of the MLS’s 18 sponsorships, the top two are Adidas and Heineken, with combined revenues of $35 million.

Expanding globally is a very serious decision for any corporation. Before making this decision, management should take into consideration the health of the corporation and identify the long term financial goals. In this assignment, I will discuss the importance for the financial managers of Nike Inc. to use economic variables in identifying long term financial goals and the major techniques/tools that the financial managers of Nike Inc. can use for forecasting future directions in the stock market and in the economy as a whole.

The Los Angels based American professional soccer team is one of the most popular sport clubs worldwide. The club mainly earns its income from sponsorship, TV and other media rights and commercials. According to the Forbes report, the company is the second in MLS in terms of annual revenue ($44 million) and in franchise value ($240 million). Considering soccer isn’t the most view and played sport in North America, LA Galaxy has done a great job on gaining large market shares in the professional sports industry. In addition to producing marketing and selling unique products (entertainment) to its fans, the club makes a significant profit from other sporting commodities and sporting goods such as jerseys, soccer shoes, and other accessories.

Football, America’s sport, which is loved from high school all the way to professional level of the game, has evolved significantly over the years to becoming as big of an entertainment spectacle as it has as well as becoming increasingly competitive over the years that it has been in session. With the very first football game being played between Rutgers and Princeton to Peyton Manning making a touchdown pass that was recognized by the World Record Association in the game against the 49ers, a spectator can tell the difference between not only skill and the technical aspects of the game, but between the love for the game itself. It has created a very huge fan base that has in turn, created many rivalries amongst the fans on which of the teams

Football has seen itself undergoing a paradigm shift in the past decades. As European football grew into the gigantic monolith it is today, an inflow of money found its way into the coffers of the Union des Associations Européennes de Football (UEFA). The Financial Fair Play (FFP) regulations were initiated in principle to create a level playing field between clubs owned by business tycoons and those who are a bit more moderate in comparison. It is a sad sight that today, European club football is in truth, nothing short of an oligopoly of about ten clubs. This distorts the competitive balance not only among them, but among leagues all over Europe. Even though the FFP has been roped in to prevent this there have been widely publicized doubts over its claims of causing a harmonised and tighter regulation for all European clubs. It might be ineffective owing to its incompleteness, plausible inefficacy and humungous costliness. Even though the regulations are welcome with regards to controlling debt, hopes that it will make football more ethical and competitive, are foolhardy. Only time will tell as to how the ‘beautiful game’ will respond to FFP and how ‘fair’ and effective it really is.

The payment method of Spot Card at the stadium in 1995 is the first victory try in a major sports stadium. The stadium make the contracts with First Union Bank, (Which latterly was acquired by Wachovia Corporation and now is a part of Fargo

In this article the author is trying to portray money as power in football; this is because he said clubs with more money have more capacity of creating a better team enabling the wealthier team to have more wins and trophies. Most football clubs are trying to make profit out talented players in order to have a good team and to have greater income for the teams’ benefits. Gerrad also takes a look at the teams with higher income if occurs into the “relegation” list but study has proven that team with higher income occur less in the relegation list unlikely clubs with low money power because of its poor performance

In this assignment I will be exploring the ways in which Internal and external factors have an impact on the core revenues of Clubs and how clubs themselves can potentially help put the factors in their favour. Topics such as Fans and their behaviour and Player conduct on and off the pitch will be explored. Things that can occur which clubs have little or no power over – such as a major political shift – which can affect a clubs income will also be covered.

It has been suggested that the UCL is a product of societal evolution. After forty years without change the European Cup had become commercially obsolete to broadcasters and sponsors due to the lack of guaranteed matches involving Europe’s biggest clubs (Ahlstrom, 2002). The knockout format allowed for clubs who would bring in large sums of revenue to be eliminated after merely two games.

With normative stakeholder theory one tries to explain (in these settings) why football clubs should take into account the interests of the stakeholders. It is easy to sympathize with the customer group in this matter. They are the foundation stone that has built the club through the years and they have invested money, emotions and their private time. But they are not as important as they once was for the club. This given that another stakeholder group (Suppliers e.g. broadcasting companies, sponsors etc.) now serves the business with monetary funding’s, hence the times have changed. Ultimately though, the suppliers will almost certainly vanish if the customers stop buying the product. Shareholders and employees can easier than the customers in this case find another business to join, they are not exclusive in the same way as the customers.