IDEAS home Printed from https://ideas.repec.org/p/zrh/wpaper/377.html
   My bibliography  Save this paper

European club football after “five treatments” with Financial Fair Play – time for an assessment

Author

Listed:
  • Egon Franck

    () (Department of Business Administration, University of Zurich)

Abstract

UEFA’s Club Licensing and Financial Fair Play Regulations impacted on European club football. After five distinct applications of the break-even requirement, which represents the cornerstone of these regulations, it is time for an assessment. How has the situation in European top-division football changed since the FFP regulation? The most recent financial data show that European club football is characterized by significant financial recovery and further polarization. How has the FFP regulation presumably affected this development? This article discusses plausible reasons why FFP has contributed to financial recovery but has not aggravated polarization. Understanding the drivers of polarization is essential before taking further regulatory steps.

Suggested Citation

  • Egon Franck, 2018. " European club football after “five treatments” with Financial Fair Play – time for an assessment," Working Papers 377, University of Zurich, Department of Business Administration (IBW).
  • Handle: RePEc:zrh:wpaper:377
    as

    Download full text from publisher

    File URL: http://repec.business.uzh.ch/RePEc/zrh/wpaper/377_IBW_full.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bizzozero, Paolo & Flepp, Raphael & Franck, Egon, 2016. "The importance of suspense and surprise in entertainment demand: Evidence from Wimbledon," Journal of Economic Behavior & Organization, Elsevier, vol. 130(C), pages 47-63.
    2. Helmut M. Dietl & Egon Franck & Markus Lang, 2008. "Overinvestment In Team Sports Leagues: A Contest Theory Model," Scottish Journal of Political Economy, Scottish Economic Society, vol. 55(3), pages 353-368, July.
    3. Egon Franck & Markus Lang, 2014. "A Theoretical Analysis of the Influence of Money Injections on Risk Taking in Football Clubs," Scottish Journal of Political Economy, Scottish Economic Society, vol. 61(4), pages 430-454, September.
    4. János Kornai, 2014. "The soft budget constraint," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 64(supplemen), pages 25-79, November.
    5. J. Kornai & E. Maskin & G. Roland., 2004. "Understanding the Soft Budget Constraint," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 12.
    6. Stefan Kesenne, 2007. "The Peculiar International Economics Of Professional Football In Europe," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(3), pages 388-399, July.
    7. Wladimir Andreff, 2007. "French Football: A Financial Crisis Rooted in Weak Governance," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00270019, HAL.
    8. Markus Sass, 2016. "Glory Hunters, Sugar Daddies, and Long-Term Competitive Balance Under UEFA Financial Fair Play," Journal of Sports Economics, , vol. 17(2), pages 148-158, February.
    9. Paul Madden, 2015. "Welfare Economics of “Financial Fair Play†in a Sports League With Benefactor Owners," Journal of Sports Economics, , vol. 16(2), pages 159-184, February.
    10. Egon Franck, 2014. "Financial Fair Play in European Club Football: What Is It All About?," International Journal of Sport Finance, Fitness Information Technology, vol. 9(3), pages 193-217, August.
    11. George Akerlof, 1976. "The Economics of Caste and of the Rat Race and Other Woeful Tales," The Quarterly Journal of Economics, Oxford University Press, vol. 90(4), pages 599-617.
    12. Rosen, Sherwin, 1981. "The Economics of Superstars," American Economic Review, American Economic Association, vol. 71(5), pages 845-858, December.
    13. Wladimir Andreff, 2011. "Some comparative economics of the organization of sports: competition and regulation in north American vs. European professional team sports leagues," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 8(1), pages 3-27, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    football; regulation; financial fair play; financial recovery; polarization;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • L49 - Industrial Organization - - Antitrust Issues and Policies - - - Other
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:zrh:wpaper:377. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Daniela Koller). General contact details of provider: http://edirc.repec.org/data/ibuzhch.html .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.