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The Unique Features of the Financing of Professional Football

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  • Zoltán Imre Nagy

    ()
    (Óbuda University)

Abstract

Since the 1990s, professional football has been experiencing an unprecedented economic boom worldwide, but only a few football clubs can meet the rapidly changing economic requirements. There are important questions that remain unanswered within the financing of football clubs, such as the impact of risks or the market value of capital costs. In addition to liquidity and beyond the above, the acceptance of the determinational dependence of certain capital funds on sports results and the development of a strategy suitable for the optimal target system are also important requirements. The conscious management of financing is pushed to the background even in countries with great football traditions. The study makes observations and recommends financing solutions for professional football clubs. Internal funding: income from media rights and ticket revenues, merchandising (image transfer), income from the sale of various assets and intangible assets. Cost-saving measures are very important for football clubs as the extent of internal funding is significant. External funding: external financing, issuing of securities, patronage capital, etc.

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Bibliographic Info

Article provided by State Audit Office of Hungary in its journal Public Finance Quarterly.

Volume (Year): 56 (2011)
Issue (Month): 4 ()
Pages: 539-552

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Handle: RePEc:pfq:journl:v:56:y:2011:i:4:p:539-552

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Web page: http://www.asz.hu

Related research

Keywords: football incorporated company; corporate financing; sports and economic results; risk;

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