PRESENTATION OF SPORTING PLAYER’S RIGHTS IN HUNGARIAN AND INTERNATIONAL ACCOUNTING

Incipiently, sport had been a civil activity then sports organizations, clubs, leagues and societies appeared in growing numbers throughout Europe in the 19th century. It had launched only for purposes of pastime and entertainment but it moved to social, political and economic levels later. After the Second World War, sports done in form of civil and private activity become equal to the public interest. The right to do sports is a constitutional right. In the 21st century, the demand on sport makes great strides and it pulls the development of the economic fields of sports as well. Today, sport is already considered as an independent industry, several countries have developed sport markets. According to estimates, sport accounts for 4% of the EU’s GDP. The actuality of research is given by the fact that the economic branch of sports develops continuously which is due to that more and more amounts already stream into sports in our days. In Hungary, sport is mainly state aided and has mostly financing problems while the sport businesses existing in the more developed Western Europe are principally sponsored by the private sector. The government considers sport as a strategic branch and manages as such because they see the international breakthrough potencies in sport as well. All this can explain the substantial contribution to this segment.The research covers an economic subject. The purpose of this research is to examine the differences of the accounting systems applied by a domestic and an international sport business; how they demonstrate the available player roster in their books; how they account for the incomes and expenditures incurred with the players. For the leaders of the businesses to be able to make quick and appropriate economic decisions in this intensively changing world, it is essential that an enterprise should have a well-functioning accounting system based on up-to-date information. International Financial Reporting Standards (IFRS) are intended to provide the comparability across borders. In order to make accounts of two or more businesses comparable, it is necessary for this treatise to touch on the field of the international accounting regulation as well. In relation to the international accounting standards, the research concerns the investigation of the intangible assets to a great extent because the player value is proved in this way and by profit-and-loss statement with respect to the player transfers

Information content of a sports undertaking’s statements serving different purposes – particularly with reference to the player rights

In the 21st century, sport is not just a fun, social cohesive force but also a business; it has become an independent industry by now and several countries possess developed sport markets. According to estimates, sport accounts for 4% of the EU’s GDP. The actuality of our research is given by the fact that the economic aspect of sports develops continuously which is also due to that more and more amounts already stream into sports in our days. In Hungary, sport is mainly state aided and has mostly financing problems while the sport businesses existing in the more developed Western Europe are principally sponsored by the private sector. The government considers sport as a strategic branch (HERCZEG et al, 2015) and manages as such because they see the international breakthrough potencies in sport as well. Sport companies must also adapt the business-based thinking, which requires the strategic planning and operation (BECSKY, 2011). The research covers the subject of economic approach of the players’ rights. The task of accounting is to give a true and fair image about the property, income and financial situation of an undertaking. Information provided by accounting is essential for both the management decisionmaking and the market operators. In Hungary, the sports undertakings, as each managing entity, have to prepare their statements according to the Act C of 2000 on Accounting (AoA.) (NAGY – BÁCSNÉ BÁBA, 2014). The purpose of this research is to examine how a domestic sports undertaking demonstrates the value of available players in the books and how the incomes and expenditures incurred with the players are accounted for, based on the regulations of the Hungarian, international associations and the Union of European Football Associations (hereinafter: UEFA). In order that the leaders of the businesses can make quick and appropriate economic decisions, it is essential in this intensively changing world that an enterprise should have a well-functioning accounting system based on up-to-date information. International Financial Reporting Standards (hereinafter: IFRS) are intended to provide the comparability across borders. Firstly, we deal with the accounting reporting system, both the Hungarian, international financial reporting standards and, relating to UEFA, the investigation of the intangible assets to a great extent during analysing the balance sheets. Then, we examine the income statements from the viewpoint player transfers. To what extent the rules of a statement laid down by UEFA differ from the ones of a statement prepared according to AoA? What is the difference in domestic and international relations? In this study, we search after the answers for questions mentioned before

The relevance of sports financing

According to estimations sports exploit approximately two percent of world GDP. In addition sports represent an important function in culture, socialization and also in education, act an outstanding role in economy, as well, though academic researchers cannot find positive relationship between sports financing and economic growth. Sports were originally civil actions, with non-profit nature, where they did not aspire to reach high returns, but fulfilment of sport itself. However returns can be realized and reinvested in sports. This paper tries to collect the different aspects of sports financing in order to highlight its relevance