EconPapers    
Economics at your fingertips  
 

Competing by investments or efficiency? Exploring financial and sporting efficiency of club ownership structures in European football

Marc Rohde and Christoph Breuer

Sport Management Review, 2018, vol. 21, issue 5, 563-581

Abstract: Professional European football clubs have been hypothesized to maximize sporting or financial objectives. The authors analyze the impact of various ownership structures on the realized management efficiency in maximizing profitability and national sporting success. Therefore, they apply the time-varying stochastic frontier model by Battese & Coelli (1995) to an unbalanced panel from England and France between 2006 and 2012. French professional football is characterized by a shift towards private investors. Results show that clubs majority-owned by private investors are less efficient than other clubs in French Ligue 1. In English professional football, the majority of takeovers is pursued by foreign investors. Although previous researchers have shown that foreign investors increase financial resources and team investments, the authors demonstrate that foreign investors reduce both financial and sporting efficiency. The analysis of survival and financial team efficiencies of club ownership structures indicates that clubs tend to compete by investments rather than efficiency.

Keywords: Football club management; Stochastic frontier analysis; Team investment; Management efficiency; Private investors; Europe (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1441352318300202
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:spomar:v:21:y:2018:i:5:p:563-581

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/716936/bibliographic
http://www.elsevier. ... 716936/bibliographic

DOI: 10.1016/j.smr.2018.01.001

Access Statistics for this article

Sport Management Review is currently edited by Tracy Taylor

More articles in Sport Management Review from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-06-20
Handle: RePEc:eee:spomar:v:21:y:2018:i:5:p:563-581