Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/236505 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14474
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper evaluates the European football clubs' compliance with UEFA Financial Fair Play (FFP) regulations and the effect of financial stability on sport achievements. The empirical analysis uses data of teams competing in the 1st division of four top domestic leagues (Premier League, La Liga, Serie A, and Ligue 1) over the seasons 2009/10 to 2015/16. We control for team quality through the annual wages (in quadratic form) and use the Wage-to-Revenue (WRR) ratio as a proxy variable to measure how close the clubs meet the break-even requirements. Our results reveal that greater financial responsibility implies better sport performance and higher chances to qualify for the Champions and Europa Leagues.
Subjects: 
professional football
financial fair play
competitive balance
wage-to-revenue ratios
JEL: 
D22
J24
J33
Document Type: 
Working Paper

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