Assessing the financial regulation of European football clubs
The roar of the crowd, the thrill of the game—football is a global phenomenon. With rising TV audiences and lucrative commercial deals, it has become big business. Money has surged into the game and changed the incentives for clubs, their executives and owners. So, what needs to be done to protect the game, to ensure that it remains sustainable and exciting?
The first report in the series, Play Forward, focuses on financial regulation. Football fans should be able to spend their time obsessing over clean sheets, not balance sheets, yet financial regulation—rather than the performance of the players on the pitch—is now a key factor for fans weighing up their club’s chances for glory, or heartache.
This report explores the origins of financial regulation in the industry, and how over a decade ago, mounting club debt sparked a revolution in football’s financial affairs. It assesses the six largest men’s national football leagues across Europe and provides an overview of the current regulations within those countries. In addition, it examines the impact of these regulations on clubs, while also offering insights for clubs, leagues and potentially even future regulators considering the optimal design of regulatory systems in the coming seasons.
Regulation has an important role to play in ensuring that fans can support their team, safe in the knowledge that it will exist for future generations. Well-designed regulation is a powerful tool for aligning the incentives of owners with the interests of fans and communities, driving better behaviours, and achieving better outcomes. Conversely, badly designed regulation can create problems and make things considerably worse. Getting it right requires real thought and careful analysis.
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Christopher Davis
PrincipalContributors
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