Profitability and financial structure of European soccer clubs: a first international comparison

Introduction and purpose. Soccer is not only a sport and a spectacle but has also become a real business, to be managed appropriately. The sector is economically important in many countries and requires academics’ attention. This research analyses the economic and financial dynamics of a sample of prominent soccer clubs in ten European countries where soccer is widespread. Literature review. There are numerous managerial studies of soccer sports enterprises. Few, however, have measured economic and financial performance based on balance sheets, making an international comparison. Research methodology. The financial statements of 10 soccer clubs for 2013-2022 were analysed, illustrating the average employee trend as an indicator of company size, Roe, and financial leverage. We subjected the data to statistical processing and used the ANOVA and Tukey-Kramer methods to compare the teams. Main results. The companies analysed have significant differences in size concerning the workforce. Profitability is almost always low, presumably due to high management costs for the most renowned players. Indebtedness is high. There are significant differences between countries. This study implements the economic literature on companies in the sport. Public policies should consider the sector relevant to many European nations’ economies and leisure time.