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
John Kass and Kevin Grier and Tyler Cowen are influential people that have the same opinion that football will end in the future. While they share many of the same key concepts but they have different attitudes of how the sport will end. In John Kass’s article “The End Of Football” appeals to the audience emotions through use of personal experience; however, “What Would The End Of Football Look Like” by Kevin Grier and Tyler Cowen is more persuasive through their credentials and objective.
There have been previous studies of pass networks in football, but these have tended to concentrate on things like the passes between specific pairs of players. Luis Enrique(Manager, FC Barcelona) and colleagues have looked more deeply into the nature of the networks, searching for what they call “flow motifs” which refer to extended sequences of consecutive passes between specific players. The same concept of characterising different network structures using motifs/patterns of interconnection was developed previously by scientists to study natural systems such as networks of neurons ,genes, and organisms in food
The UEFA Financial Fair Play (FFP) Regulations have come to terms in 2009 and it has been widely discussed due to the nature of the rules that was imposed on the clubs. The aim of this short essay would be to discuss the impacts of FFP Regulations on the competitive balance in European Football. The first section of this essay is an introduction to the UEFA FFP Regulations. Second, we briefly introduce the Fort and Quirk Model that will be used to analyse the effects on competitive balance. Thirdly, we look at findings from sports economists on the FFP Regulations. The final section will be a conclusion and summary on the effects of UEFA FFP Regulations on the competitive balance of the leagues.
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
Of what importance are the periodic net income numbers if the clubs can always be sold for huge profits?
The controversy between the owners and players concerning how to account the expenses is crucial to understand if the company could be profitable and then able to meet players’ requirements. In this case three problems are under the scrutiny of the arbiter: roster depreciation, player compensation and the transfer pricing of related party operation, thus issues regarding the stadium cost. Players and owners are struggling against each other in order to win the bargain trying to force and emphasize their own reasons. Since they have not reached an agreement yet, a super-partes moderator has been asked to figure out the outcome of the bargain, relying on good and rational
Of what importance are the periodic net income numbers if the clubs can always be sold for huge profits?
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.
Other issues discussed relating to the research design were the choice of previous period’s sales as the scalar, the choice of control variables, the omission of variables to control for the effect of league position and the availability of data on amortisation and impairment. The posited link between net transfer fees (paid less received) and subsequent benefits was queried because the definition of ‘net’ investment excluded replacement investment. By omitting amortisation the measure of investment is overstated which poses a particularly demanding test against which to identify an incremental benefit. It was also suggested that an event-study methodology might be a more appropriate research design to identify market response to investments in player contracts. This discussion focuses first on the development of UK regulatory guidance for purchased intangible assets to allow an evaluation of the authors’ preference for the flexibility in choosing whether to capitalise or immediately expense intangible assets that existed pre-FRS 10. The requirement that the carrying values of intangible fixed assets should not exceed the recoverable amounts, the application of the ‘value to the owner’
Economic principle’s rationale for requiring guidance for financial institutions is to use mark-to-market accounting or fair value accounting on their financial reports. With the current economic crisis, questions have been raised as to whether or not fair value accounting is making this crisis worse. In this paper I review the history of fair value accounting and the ethics behind whether fair value accounting gives an accurate picture or is it causing a need for higher capital requirements and unnecessary concern with investors. There is a need for transparency. It is Accounting Standards and
Managers often find themselves being sacked and replaced, sometimes only lasting a matter of days before having to move on. In this essay I will be investigating the performance of Premier League football teams, both with a change of manager and without, to see if there is evidence of a correlation between the changing managers and the results of football clubs.
The purpose of this report is comprehensive quantitative analysis for the financial performance of Barclays Bank. Quantitative analysis is an important method of looking beyond the numbers and understanding the stories they tell. It is quantitative analysis that gives way to qualitative analysis and allows us to gauge the running of a business better. Quantitative analysis is key towards improving our understanding of the relationships that may exist among key financial variables or key factors influencing the performance of a firm. The application of quantitative analysis towards business performance is a key method of identifying problems that may hinder the growth of the business and tackle their root cause.
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.
The descriptive stakeholder theory can also be useful to the settings in trying to state whether and how the football clubs do listen to the stakeholder’s interests. Also in this context the clubs can rely on their loyal customer base. Even though if you treat them bad (expensive tickets, changing the club badge and colors etc.) they will not ultimately stop buying the product. You might however as a owner/ shareholder have a customer rebellion on your hands. Shareholders can more easily sell their stocks if they feel neglected by the club, suppliers will search for other
This Accounting Procedures Manual has been prepared by Christopher Mdolo-ACCA(CPAM) for Football Association of Malawi. The manual provides comprehensive accounting policies, systems and procedures to ensure that FAM’s activities are implemented in a transparent and accountable manner using appropriate financial pathways. The Manual will ensure that there is consistency, transparency and accountability on the part of those involved in undertaking the Associations transactions.