Analysis of the financing activities of European football leagues
Economic Annals-ХХI: Volume 189, Issue 5-6(1), Pages: 46-56
Citation information:
Litvishko, O., Aliev, A., Veynberg, R., Kokoulina, O., Farzaliev, J., & Gyömörei, T. (2021). Analysis of the financing activities of European football leagues. Economic Annals-XXI, 189(5-6(1)), 46-56. doi: https://doi.org/10.21003/ea.V189-05
Oleg Litvishko
PhD (Economics),
Associate Professor,
Department of Financial Management
G. V. Plekhanov Russian University of Economics (PRUE)
36 Stremyanny Ln., Moscow, 117997, Russian Federation
Litvishko.OV@rea.ru
ORCID ID: https://orcid.org/0000-0002-2722-5109
Ayaz Aliev
PhD (Economics),
Associate Professor,
Department of Financial Management
G. V. Plekhanov Russian University of Economics (PRUE)
36 Stremyanny Ln., Moscow, 117997, Russian Federation
Aliev.AAO@rea.ru
ORCID ID: https://orcid.org/0000-0003-1476-9702
Roman Veynberg
PhD (Economics),
Associate Professor,
Computer Science department,
G. V. Plekhanov Russian University of Economics (PRUE)
36 Stremyanny Ln., Moscow, 117997, Russian Federation
Veynberg.RR@rea.ru
ORCID ID: https://orcid.org/0000-0001-8021-5738
Olga Kokoulina
PhD (Education),
Associate Professor,
Department of Physical Culture,
G. V. Plekhanov Russian University of Economics (PRUE)
36 Stremyanny Ln., Moscow, 117997, Russian Federation
Kokoulina.OP@rea.ru
ORCID ID: https://orcid.org/0000-0001-7495-9511
Javid Farzaliev
Senior lecturer,
Department of Physical Culture,
G. V. Plekhanov Russian University of Economics (PRUE)
36 Stremyanny Ln., Moscow, 117997, Russian Federation
Farzaliev.dao@rea.ru
ORCID ID: https://orcid.org/0000-0003-3753-9504
Tamás Gyömörei
PhD (Economics),
Associate Professor,
PE and Sport Centre,
Széchenyi István University (SZE)
Egyetem tér 1, Győr, 9026, Hungary
gyomorei@sze.hu
ORCID ID: https://orcid.org/0000-0001-5937-1031
Analysis of the financing activities of European football leagues
Abstract. In a market economy, effective financial management is one of the most important aspects of the functioning of any company, which plays a connecting role between various areas of its activities and determines the company’s position on the market, its competitiveness, prospects for sustainable development and cost growth. In this context, the assessment of the economic efficiency of sports organizations is also relevant, due to the high social significance of the sports industry and its huge popularity among the population. The study selected leagues that use different approaches to the formation and distribution of financial resources in their activities. Thus, the subject of this research is the existing mechanisms for financing the activities of sports subjects. The comparative report of UEFA on club licensing for pre-COVID-19 period was used as an analytical basis for the study. The results obtained during the study showed that with an effective approach to the process of managing financial and economic activities, the professional sports industry can be considered as a promising tool that can generate a significant material and non-material effect on various spheres of public activity, which affects the dynamic economic growth of the industry, as evidenced, in particular, by the performance index of the football leagues of Europe calculated in the work, showing the stable growth of the industry in the pre-COVID-19 period.
Keywords: Football Industry; Finance; UEFA; Mechanism; Efficiency; Analysis; Integral Indicator; Economic Activity
JEL Classification: Z23; L83; E22
Acknowledgements and Funding: The authors thank all anonymous reviewers for their helpful remarks. This paper was prepared as part of the government contract as requested by the Ministry of Science and Higher Education on the subject formulated as «Structural changes in economy and society as a result of achieving the target indicators of National projects, which provide opportunities to organize new areas of social and economic activity, including commercial, both in Russia and abroad» (project No. FSSW-2020-0010).
Contribution: The corresponding author is Veynberg Roman. The authors contributed equally to this work.
DOI: https://doi.org/10.21003/ea.V189-05
References
- Aliev, A. A., Bondarenko, T. G., Keri, I. T., Soltakhanov, A. U., & Vershinina, A. A. (2018). Predicting levels of innovation-led development as exemplified by state-owned oil company. Journal of Applied Economic Sciences, 13(7), 1902-1907.
https://www.elibrary.ru/item.asp?id=43239945 - Andreff, W., & Szymanski, S. (2006). Handbook on the Economics of Sport. Edward Elgar Publishing Limited.
https://www.researchgate.net/publication/278410974_Handbook_on_the_Economics_of_Sport_Edward_Elgar_Cheltenham_2006 - Bolan, N., & Bolan, M. A. (2013). The diagnosis of financial resources of small and middle size enterprises (SME). Proceedings in Manufacturing Systems, 8(4), 345-352.
http://icmas.eu/Journal_archive_files/Vol_8-Issue4-2013-PDF/221-226_Boian.pdf - Chakraborty, S. (2018). Significance of BRICS: Regional Powers, Global Governance, and the Roadmap for Multipolar World. Emerging Economy Studies, 4(2), 182-191.
https://doi.org/10.1177/2394901518795070 - Fishburne, P. (1970). Utility Theory for Decision Making. Operational Research Quarterly (1970-1977), 22(3), 308-309.Science.
https://doi.org/10.2307/3008003 - Hattori, M., & Tanaka, Y. (2017). Competitiveness of Firm Behavior and Public Policy for New Technology Adoption in an Oligopoly. Journal of Industry, Competition and Trade, 17(2), 135-151.
https://doi.org/10.1007/s10842-016-0231-2 - Kurushina, E. V., & Petrov, M. B. (2018). Performance criteria of spatial development projects based on interregional integration. Economy of Region, 14(1), 176-189.
https://cyberleninka.ru/article/n/kriterii-uspeshnosti-proektov-prostranstvennogo-razvitiya-na-osnove-mezhregionalnoy-integratsii (in Russ.) - Litvishko, O. V., Veynberg, R. R., & Bodrov, I. M. (2019). Investment potential of the football industry. Journal of Physical Education and Sport, 19(4), 2390-2399.
https://doi.org/10.7752/jpes.2019.04362 - Litvishko, O. V., Veynberg, R. R., Ziyadin, S., Sousa, R. M. D., & Rakhimova, G. (2019). Professional sports: Strategic approaches to investment attractiveness formation. Economic Annals-XXI, 178(7-8), 105-113.
https://doi.org/10.21003/ea.V178-09 - Matsumura, T., Matsushima, N., & Cato, S. (2013). Competitiveness and R&D competition revisited. Economic Modelling, 31(1), 541-547.
https://doi.org/10.1016/j.econmod.2012.12.016 - Morozov, V. Y., Murashova, Y. V., Lustina, T. N., Panova, A. G., & Danilova, V. A. (2017). Formation of human resource management system in organizations. European Research Studies Journal, 20(3), 325-337.
https://www.researchgate.net/publication/317027865_Formation_of_human_resource_management_system_in_organizations - Osokin, N. A., & Solntsev, I. V. (2017). Constructing a multidimensional indicator of sports development: The case of the football development index. Zhournal Novoi Ekonomicheskoi Associacii, 36(4), 135-163.
https://doi.org/10.31737/2221-2264-2017-36-4-6 (in Russ.) - Peeters, Th., & Szymanski, S. (2014). Financial fair play in European football. Economic Policy, 29(78), 343-390.
https://doi.org/10.1111/1468-0327.12031 - Plumley, D., Wilson, R., & Ramchandani, G. (2017). Towards a model for measuring holistic performance in professional football clubs. Soccer & Society, 18(1), 16-29.
https://doi.org/10.1080/14660970.2014.980737 - Plumley, D., Wilson, R., & Shibli, A. (2017). Holistic Performance Assessment of English Premier League Football Clubs 1992-2013. Journal of Applied Sport Management, 9(1), 1-9.
https://doi.org/10.18666/JASM-2017-V9-I1-7353 - Salakhova, V. B., Masalimova, A. R., Belyakova, N. V., Morozova, N. S., Osipova, N. V., & Prokopyev, A. I. (2021). Competitive Teacher for Higher Education: Risk-Based Models of its Development. Eurasia Journal of Mathematics, Science and Technology Education, 17(10), 1-12.
https://doi.org/10.29333/EJMSTE/11187 - Salakhova, V. B., Pryazhnikova, E. Y., Litvinov, A. V., Vasyakin, B. S., & Zasova, L. V. (2021). Physical and mental health of educational environment as a factor in providing the national security of the Russian Federation: An empirical research. Journal of Human Sport and Exercise, 16(3 proc), S1260-S1271.
https://doi.org/10.14198/jhse.2021.16.Proc3.42 - The European Club Footballing Landscape. (2021). Club Licensing Benchmarking Report. Official website for European football.
https://ru.uefa.com/insideuefa/uefaeuropeanclubfootballinglandscape (in Russ.) - UEFA. (2021). Procedural rules governing the UEFA Club Financial Control Body. Official website for European football.
https://editorial.uefa.com/resources/026b-12a6f127022e-616a830be2af-1000/20210701_cfcb_procedural_rules_2021_en_final.pdf
Received 14.04.2021
Received in revised form 29.04.2021
Accepted 14.05.2021
Available online 10.06.2021