Politická ekonomie 2021, 69(1):73-98 | DOI: 10.18267/j.polek.1306

Jsou pravidla finanční fair play spravedlivá a udržitelná? Případ anglické Premier League

David Procházka ORCID...a, Šimon Vanca
Vysoká škola ekonomická v Praze, Fakulta financí a účetnictví, Praha, Česká republika

Are the Financial Fair Play Regulations Fair and Sustainable? Case of English Premier League

The paper investigates whether the Financial Fair Play Regulations have contributed to a sus- tainable economic framework of club football while retaining equal opportunities for sport success. Mutual relations among economic strength of football clubs, their financial aggres-siveness in investments into squads and league results after the implementation of the FFP rules are assessed. Using a dataset of the English Premier League clubs over 2011-2017, empirical data reveal that the league is economically sustainable in the long run. However, profitability improves by increasing broadcasting revenue, and clubs' profits are driven by their ownership structure rather than FFP. Furthermore, we identify a statistically signifi-cant financial aggressiveness in spending on squads. A regulation aiming at securing sustain-able economic development may, thus, curtail sport competitiveness of smaller clubs and boost dominance of teams that are economically strong around the time of regulation launch.

Keywords: football; FFP rules; competitiveness; sustainable development; revenue; profits; Premier League
JEL classification: M41, Z23, Z28

Received: November 27, 2019; Revised: November 19, 2020; Accepted: November 24, 2020; Prepublished online: March 2, 2021; Published: March 5, 2021  Show citation

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Procházka, D., & Vanc, Š. (2021). Are the Financial Fair Play Regulations Fair and Sustainable? Case of English Premier League. Politická ekonomie, 69(1), 73-98. doi: 10.18267/j.polek.1306
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