<abstract xmlns="http://www.w3.org/1999/xhtml"><bold>Introduction.</bold> The insolvency in football was explained by the underperformance of a football club, either in terms of its ability to achieve playing results which depends on the quality of players on the staff, or in terms of its ability to generate a level of revenue consistent with performance in the league. Hence, two questions were addressed in the study: how deep will the European football crisis be after 2020 and are payrolls the most sensitive factor of football business performance?<bold>Material and Methods.</bold> The study was based on the European football clubs data derived from the annual financial statement. A descriptive statistics analysis was performed in order to find out how significant salary indicators are in comparison to other football clubs’ performance measures. In order to establish the scale of changes in football finance in 2020, a basic stress test analysis was implemented.<bold>Results.</bold> The study established that salary to revenue indicator is one of the most significant for football clubs’ performance. Thus, as the first step, the analysis of revenue reduction was elaborated and in the second step, the analysis of the reduction of salaries was performed. The presented stress test scenario implied that the situation of European football would change dramatically under the assumption of 50% reduction of the annual revenue.<bold>Conclusions.</bold> The study established that the football clubs’situation is too serious not to be carefully managed due to cost and revenue performance.</abstract>

Introduction. The insolvency in football was explained by the underperformance of a football club, either in terms of its ability to achieve playing results which depends on the quality of players on the staff, or in terms of its ability to generate a level of revenue consistent with performance in the league. Hence, two questions were addressed in the study: how deep will the European football crisis be after 2020 and are payrolls the most sensitive factor of football business performance?Material and Methods. The study was based on the European football clubs data derived from the annual financial statement. A descriptive statistics analysis was performed in order to find out how significant salary indicators are in comparison to other football clubs’ performance measures. In order to establish the scale of changes in football finance in 2020, a basic stress test analysis was implemented.Results. The study established that salary to revenue indicator is one of the most significant for football clubs’ performance. Thus, as the first step, the analysis of revenue reduction was elaborated and in the second step, the analysis of the reduction of salaries was performed. The presented stress test scenario implied that the situation of European football would change dramatically under the assumption of 50% reduction of the annual revenue.Conclusions. The study established that the football clubs’situation is too serious not to be carefully managed due to cost and revenue performance.

Football Clubs Drowned by Players

Faculty of Management and Social Communication

Polish Journal of Sport and Tourism

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"Football Clubs Drowned by Players"}

Introduction. The insolvency in football was explained by the underperformance of a football club, either in terms of its ability to achieve playing results...

Football Clubs Drowned by Players

Published Online: Aug 28, 2020

Page range: 28 - 32

Received: Jan 08, 2019

Accepted: Mar 31, 2020

DOI: https://doi.org/10.2478/pjst-2020-0005

Keywords
bankruptcy, football, finance, crisis

© 2020 Igor Perechuda, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Football Clubs Drowned by Players

Published Online: Aug 28, 2020

Page range: 28 - 32

Received: Jan 08, 2019

Accepted: Mar 31, 2020

DOI: https://doi.org/10.2478/pjst-2020-0005

Keywordsbankruptcy, football, finance, crisis

© 2020 Igor Perechuda, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
bankruptcy, football, finance, crisis