Investments in the beautiful game - the effect of ownership types on the performance of European football clubs - an empirical analysis

Abstract

In the light of on going discussions about ownership models in the European football industry, this paper analyses possible effects of different ownership motivations on club performance using financial and sporting data of 84 professional European football clubs over a period of eight seasons. A univariate model and a multiple linear regression model are applied in the analysis. The results provide evidence supporting the assumption that strategically motivated owners prioritize win-maximization over profitable operations. In contrast to the findings of existing research, this paper finds evidence for the theory that economically motivated owners tend to increase club financial leverage.