Salaries to Revenue Ratio Efficiency in Football Clubs in Europe

Igor Perechuda
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Igor Perechuda: Jagiellonian University

A chapter in Eurasian Economic Perspectives, 2019, pp 301-313 from Springer

Abstract: Abstract Coefficient of Salary to Revenue is one of the key performance indicators in football clubs. It contains information about money invested in the main resource of football club, i.e. in football player. Thus, the most important element of a football club is the football squad. The sports club could not participate in competitions without a suitable team. Consequently, the question arises about an effective level of salary in comparison to sports and business performances. A sports club is a specific enterprise. A significant number of football clubs have financial difficulties. Therefore, knowledge of the optimal allocation of financial resources is important. The main objective of the study is to identify an optimal level of salaries in relation to revenue coefficient so that effective sport results could be achieved. Depending on the chosen sample in the conducted research, results show different levels of the chosen coefficient. Yet, it is observed that clubs are characterised by some extreme results and tendencies. The paper presents a part of a wider research study about the key indicators of measuring sports clubs efficiency in Europe.

Keywords: Corporate finance; Football clubs; Efficiency; European football; Salary (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:spr:eurchp:978-3-030-11833-4_20

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DOI: 10.1007/978-3-030-11833-4_20

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