IDEAS home Printed from https://ideas.repec.org/a/jsf/intjsf/v5y2010i1p52-66.html
   My bibliography  Save this article

Spanish Football Clubs Finances: Crisis and Player Salaries

Author

Listed:
  • Ángel Barajas

    (University of Vigo, Observatorio Económico del Deporte)

  • Plácido Rodríguez

    (Oviedo University, Observatorio Económico del Deporte)

Abstract

This paper shows the current financial situation of Spanish professional football. Different financial ratios are used in order to classify the financial position of the different teams. The study has been split between clubs in First or Second division. We also analyze the relationships between the size of market, team payrolls, and team performance. We demonstrate the financial problems created by the arms race that clubs have started for getting the most talented players for trying to get the best possible sporting outcome. The new Spanish Law for companies in financial distress has implied that nine clubs are technically insolvent and under administration. We have searched for possible explanations of that situation. Nevertheless, our financial variables do not explain the likelihood that a club goes into administration.

Suggested Citation

  • Ángel Barajas & Plácido Rodríguez, 2010. "Spanish Football Clubs Finances: Crisis and Player Salaries," International Journal of Sport Finance, Fitness Information Technology, vol. 5(1), pages 52-66, February.
    • Handle: RePEc:jsf:intjsf:v:5:y:2010:i:1:p:52-66
    as

    Download full text from publisher

    File URL: http://www.fitinfotech.com/IJSF/IJSFbackissueWVU.tpl
    Download Restriction: Full-text download requires subscription from FIT.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rudemarlyn Urdaneta & Juan C. Guevara-Pérez & Fernando Llena-Macarulla & José M. Moneva, 2021. "Transparency and Accountability in Sports: Measuring the Social and Financial Performance of Spanish Professional Football," Sustainability, MDPI, vol. 13(15), pages 1-16, August.

    More about this item

    Keywords

    finance; player salaries; performance; financial distress; soccer; under administration;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jsf:intjsf:v:5:y:2010:i:1:p:52-66. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Victor Matheson (email available below). General contact details of provider: http://www.fitinfotech.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.