Articles on Issue Theme
Teodor DIMA
Academia de Studii Economice din Bucureşti
Football League clubs have agreed strict Financial Fair Play rules in what could be the most significant change to the way the game is governed. Faced with increased wage costs, losses, debt and insolvency, the new rules will impose a transfer embargo on clubs that overspend. In this study we analyze the influence of Financial Fair Play rules on football clubs from an economic perspective. The UEFA Regulations were intended to prevent professional football clubs from spending more than they earn in the pursuit of success and, in doing so, getting into financial problems which might threaten their long term survival. So far national regulations have been very different in European leagues. The new rules are expected to trigger some asymmetric adjustments among clubs and leagues, thereby leading to changes in the competitive balance and probably to a new competitive equilibrium in European club football. There is an ongoing debate on how Financial Fair Play will affect European club football and how “fair” Financial Fair Play really is. We perform a SWOT analysis taking into consideration the opinion of various specialists and also applying our own perspective.
ŒCONOMICA no. 4/2013
Keywords: financial fair play, economics, football club, regulations, SWOT analysis
JEL: G32, L83, Z19
How “Fair” Are Football’s Financial Fair Play Regulations? [Cât de “echitabile” sunt reglementarile privind echitatea financiară în fotbal?]
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Academia de Studii Economice din Bucureşti
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