Objectives pursued by European football clubs: hiring talent to generate income through victories and media exposure

Design/methodology/approach: This paper applies SEM (path analysis) techniques to re-examine what is the more realistic description of football club owners’ decisions when hiring talent. Our database comprises teams from the first division of four top European football leagues: 80 observations per season during the pre-Covid period spanning from 2009/10 to 2017/18. Purpose: The paper revisits the debate on the priorities of football clubs in talent hiring with respect to maximizing sporting performance or economic profitability. Based on the degree of media exposure of the clubs, we examine whether the clubs’ objectives include, in addition to the classic twofold choice, the aspiration of club managers to gain popularity through media exposure. Findings: The results suggest that, when recruiting players, in addition to considering the two classic objectives (wins and profits), club owners also seem to aim expanding the media exposure and popularity of their clubs. Our study reveals that, to explain talent hiring decisions in football, the ability to attract media attention is as crucial as sporting performance could be. Furthermore, by examining the direct, indirect and total effects on annual revenue, we found that our media visibility index performs a mediation effect connecting sports performance and revenue. Originality/value: An innovative feature of our analysis is the use of the MERIT media visibility index, which jointly captures the on -field and off-field players’ skills. The consistency and robustness of the results derive from the various specifications of the estimated models.