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The Impact of Governance on European Football Leagues’ Competitiveness

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  • Bastien Drut

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Gaël Raballand

Abstract

The sharp increase in TV broadcasting rights and the liberalization of the transfer market has completely reshaped the balance of power in European football, both within and between the different leagues. A trade-off has emerged with leagues whose teams perform well in the Champions League suffering financial inequality and clubs in financial difficulty, while those leagues which are less successful in the Champions League enjoy relative financial equality and less debt. The English, Italian and Spanish leagues are in the first category while the French and German leagues are in the second category. Based on interviews with several stakeholders, this paper demonstrates that this is mainly explained by the extent of financial regulation, which depends on leagues' and clubs' governance. It also discusses the role of UEFA and assesses the impact of the introduction of the financial fair-play rule.

Suggested Citation

  • Bastien Drut & Gaël Raballand, 2010. "The Impact of Governance on European Football Leagues’ Competitiveness," Working Papers hal-04140898, HAL.
    • Handle: RePEc:hal:wpaper:hal-04140898
    Note: View the original document on HAL open archive server: https://hal.science/hal-04140898
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    References listed on IDEAS

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    1. Egon Franck, 2010. "Private Firm, Public Corporation or Member’s Association Governance Structures in European Football," International Journal of Sport Finance, Fitness Information Technology, vol. 5(2), pages 108-127, May.
    2. Helmut M. Dietl & Egon Franck, 2007. "Governance Failure and Financial Crisis in German Football," Journal of Sports Economics, , vol. 8(6), pages 662-669, December.
    3. Wladimir Andreff, 2007. "French Football: A Financial Crisis Rooted in Weak Governance," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00270019, HAL.
    4. Wladimir Andreff, 2007. "French Football: A Financial Crisis Rooted in Weak Governance," Post-Print halshs-00270019, HAL.
    5. Pedro Garcia-del-Barrio & Stefan Szymanski, 2009. "Goal! Profit Maximization Versus Win Maximization in Soccer," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 34(1), pages 45-68, February.
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