Football club financial reporting: time for a new model?

Stephen Morrow*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

52 Citations (Scopus)

Abstract

Purpose
The purpose of this paper is to critically evaluate football club financial reporting with reference to: the long-standing debate on the nature and purpose of accounting; and the implementation of UEFA's Financial Fair Play (FFP) regulations.

Design/methodology/approach
The paper is based on a review and analysis of academic literature, accounting regulation and football regulations.

Findings
The focus of financial reporting on rational economic decision-makers results in football club financial reports being of limited use to many football club stakeholders. Consideration of the social and organisational context of football, as takes place in FFP, can be used as a catalyst to consider broader approaches to football club reporting. The paper calls for fuller and different pictures to be provided of clubs’ performance, in particular broadening the scope of accountability to users beyond that provided by an economic account.

Research limitations/implications
The paper is designed to stimulate debate about accounting for and reporting on football club businesses. A necessary next step is an exploratory project, focusing on one or a small number of clubs and their stakeholders, exploring in a practical setting what enhanced football club reporting might look like.

Originality/value
While the weaknesses of financial reporting have been considered extensively in the mainstream accounting literature and on occasion in terms of sport, the paper seeks to progress this discussion by linking it to significant football policy initiatives and to wider social and community-based football research.
Original languageEnglish
Pages (from-to)297-311
Number of pages15
JournalSport, Business and Management
Volume3
Issue number4
DOIs
Publication statusPublished - 7 Oct 2013

Keywords

  • Financial fair play
  • Financial reporting
  • Football clubs

ASJC Scopus subject areas

  • Business and International Management
  • Tourism, Leisure and Hospitality Management
  • Strategy and Management
  • Marketing

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