A model to explain support in Spanish football

This paper analyses the factors which affect support and influence revenues in Spanish professional football clubs. It focuses on the relationships between attendance and different sets of variables: those that relate to the socio-economic environment, the quality of product (results) and the quality of means of production (team squad). The main conclusions are, firstly, that the quality of the squad influences attendance through its performance on the pitch, secondly, that the level of attendance is explained by the population of the province in which the club is based, and by both the current and historical performances of the team, and thirdly, that the club’s sporting revenues can be explained by their attendances. Given the importance of support, and in particular attendance, to the revenues of football clubs, the conceptual model developed in this article might contribute significantly to the estimation of cash-flows in football clubs.football (soccer) economics; attendance; sport performance; revenues

Professional football and Stock Exchange: experince in some European Leagues

From January, 2002, the Sports Limited Companies (SAD) can quote in Stock Exchange in Spain. For several years, other European leagues take us the front part and the most excellent teams exchange their actions in the Stock exchanges. Nevertheless soccer has already had relation with the secondary market in Spain. In the present work, these experiences are revised and the necessary conditions are exhibited so that the SADs quote in Spain. On the other hand, a trip is done by different European Stock Exchanges to know the requisites demanded for the quotation of qualifications. In particular those of London, Portugal, Italy and Germany are analyzed. With this exercise, we try to discover the factors that have facilitated that numerous teams of Premier League and English First Division already quote, that two clubs - Oporto and Sporting of Lisbon - are already quoting in the Stock Exchange of Lisbon, or that in Italy two Roman teams negotiate his actions on the Secondary Market and recently the Juventus has been added to them. The proper characteristics of the markets, the financial culture of the different countries does that there is more or less widespread this form of search of resources. Also they are exhibited in this sense of comparative form as the investors have answered before this type of values. Finally, a study is done on the problems that the analysts find to consider the prices adapted to buy or to sell the actions of the clubs of soccer. A series of financial reports is analyzed on the A.S. Rome and the S.S. Lazio between May, 2000 and September, 2001.Soccer; Stock Exchange; finances

Strategic vision of football business

The financial reports attached to the Financial Statements give a rich information about the vision of Football Industry that the Chairmans and CFO have.Football; Sport Economics; Strategy

Does sports performance influence revenues and economic results in Spanish football?

English football began taking steps towards becoming a business earlier than Spanish football did, and academic studies on the football industry to date also focus primarily on football in the UK. The evidence for the relationship between sports performance and revenues appear clear in English football. There is even research about the effects of a club’s wealth on its sports performance, or the effects of a club’s sporting situations on its finances. In this paper, we ana-lyse the relationship between sports performance and the revenues of football clubs as well as the effect of sports performance on the financial results in Spanish professional football. In order to carry out this research we have had to select which variables to analyse and choose the most appropriate methods of measurement. We have designed a system which obtains a variable of sports performance that includes information from every competition in which the foot-ball club participates.sports performance; economic results; football (soccer); football club finances

Testing the contestable market theory in eSports

This article contributes to the development of contestable market theory by investigating how competitiveness in the eSports industry influences the size of this industry, as measured by the volume of monetary prizes. We use data on each gamer’s prize earnings for each tournament from 1999 to 2015 to estimate panel vector autoregression (V.A.R.) model with fixed effects. The main finding is that competition does not increase industry size. This result confirms the hypothesis from the contestable market theory that perfect competition does not always facilitate better development, especially in industries where natural barriers result in a small number of leading firms or teams

Fútbol profesional y bolsa: experiencia en otras ligas europeas

From January, 2002, the Sports Limited Companies (SAD) can quote in Stock Exchange in Spain. For several years, other European leagues take us the front part and the most excellent teams exchange their actions in the Stock exchanges. Nevertheless soccer has already had relation with the secondary market in Spain. In the present work, these experiences are revised and the necessary conditions are exhibited so that the SADs quote in Spain. On the other hand, a trip is done by different European Stock Exchanges to know the requisites demanded for the quotation of qualifications. In particular those of London, Portugal, Italy and Germany are analyzed. With this exercise, we try to discover the factors that have facilitated that numerous teams of Premier League and English First Division already quote, that two clubs - Oporto and Sporting of Lisbon - are already quoting in the Stock Exchange of Lisbon, or that in Italy two Roman teams negotiate his actions on the Secondary Market and recently the Juventus has been added to them. The proper characteristics of the markets, the financial culture of the different countries does that there is more or less widespread this form of search of resources. Also they are exhibited in this sense of comparative form as the investors have answered before this type of values. Finally, a study is done on the problems that the analysts find to consider the prices adapted to buy or to sell the actions of the clubs of soccer. A series of financial reports is analyzed on the A.S. Rome and the S.S. Lazio between May, 2000 and September, 2001

Modelo de valoración de clubes de fútbol basado en los factores clave de su negocio

I have designed a valuation method adjusted to the specific characteristics of Spanish professional soccer clubs under the hypothesis that clubs behave financially reasonably. I analyse the factors that define the context where soccer business takes place. I have built a conceptual model that links support, squad quality (proxy by financial criteria), sports results, revenues, investment and socio-economic variables with cash flows, from wich. I obtain the club value. The work is structured in three sections. The first one is a historic and strategic analysis of the sector. The second one deals with the study of the essential factors for value creation in football and the las one shows the valuation methos based on the discounted cash-flow model, using the estimated free cash-flow claculated according to the relationships reached in the previous chapters. I have checked the existence of a high tange of beta value in function of the period of time used on their calculation. So, I propose the use of qualitative betas that gather aspects linked to business risk, financial structure and the characteristics of the managerial team. Afterwards, I determine the weighted average cost of capital and, with it, reach the value of a benchmark club. Finally, I show the viability of the model, not only for valuation, but also in order to manage professional football clubs to create value for shareholders

Visión estratégica del negocio del fútbol. La opinión de los presidentes de los clubes de fútbol ingleses que cotizan en Bolsa.

The financial reports attached to the Financial Statements give a rich information about the vision of Football Industry that the Chairmans and CFO have