Profits may lead teams to lose matches, but scoring goals does not lead to profit

  1. Luis Carlos Sánchez 1
  2. Ángel Barajas 2
  3. Patricio Sanchez-Fernandez 1
  1. 1 Universidade de Vigo
    info

    Universidade de Vigo

    Vigo, España

    ROR https://ror.org/05rdf8595

  2. 2 Higher School of Economics, National Research University
    info

    Higher School of Economics, National Research University

    Moscú, Rusia

    ROR https://ror.org/055f7t516

Revista:
European Research on Management and Business Economics

ISSN: 2444-8834

Ano de publicación: 2020

Volume: 26

Número: 1

Páxinas: 26-32

Tipo: Artigo

DOI: 10.1016/J.IEDEEN.2019.12.007 DIALNET GOOGLE SCHOLAR lock_openAcceso aberto editor

Outras publicacións en: European Research on Management and Business Economics

Resumo

The purpose of this paper is to examine the relationship between profitability and sporting performance in European football. Profitability has been rarely studied because it has not been considered an aim of European clubs, in contrast with American clubs. However, the emergence of investors who invest on both sides of the Atlantic shows that the objectives of owners can be diverse and that profitability has to be taken into account. The study of the compatibility or incompatibility of sporting performance and profitability has implications for the existence of clubs with owners with different objectives in the same competition, or even owners with different aims in the same club. The paper finds that financial performance has a negative influence on clubs’ sporting performance, while sporting performance does not have a negative influence on profitability. Moreover, ownership concentration has a negative influence on both performance variables. These findings show that the pursuit of sport success could undermine the profitability and sustainability of clubs and that investors could focus less on sport results and focus more on maximizing the financial returns on their investments

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Información de financiamento

This study comprises research findings carried out within International Laboratory of Intangible-driven Economy (ID Lab) of the National Research University Higher School of Economics’ Basic Research Program.

Financiadores

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