Research On The Financial Performance Of The English Premier League

801 WordsSep 20, 20174 Pages
This dissertation was written to examine whether the financial performance of the English Premier League and the sampled clubs improved after UEFA introduced their Financial Fair Play regulations. This led to the comparison of the results for the league in general and individual clubs over a ten-year period (2004 – 2015). This ten year period was broken down into two parts: “FFP1” which represented years prior to the Financial Fair Play introduction (2004 – 2009) and “FFP2” representing post Financial Fair Play years (2010 – 2015). The previous chapter discussed each hypothesis and provided the results achieved. Therefore, the aim of this chapter will be to appraise the empirical evidences and determine whether they comply with their…show more content…
Collectively, two out of the six clubs had experienced an increase in profitability, whether it was a reduction in losses when comparing both periods or an increase in profits. This meant that the clubs’ relevant turnovers exceeded their expenses. For example, only Chelsea and Tottenham both recorded improvements in their profitability with Chelsea having the highest loss reduction percentage of 70%.; whereas the other four clubs did not improve their profitability over this period. Although Arsenal maintained profits throughout the “FFP2” period averaging £22.1 million a year, it still managed to gain a decrease in profits. These results may seem befuddling as Arsenal were the only club not to make any losses during the 10-year period. Overall, the results show that although the Premier league increased its profitability, the collective sampled club’s results differed. The losses in the “FFP1” period collectively totalled £371 million; whereas the losses in the “FFP2” period collectively totalled £461 million. For there to be an improvement of profitability, the cumulative losses in “FFP1” must be greater than the cumulative losses in the “FFP2” period. This suggests profitability decreased after the introduction of Financial Fair Play. However, the story differs with individual clubs as they all reacted differently. 5.2 Hypothesis 2 The second hypothesis of this dissertation implied that the

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