Players as strategic assets in Portuguese professional football: financial sustainability and competitive outcomes in a transfer-driven model

Purpose Professional football is a strategically important economic sector, particularly in smaller European leagues operating under constrained domestic markets. This paper examines the transfer-driven business model of Portuguese professional football, analysing how transfer activity shapes clubs’ financial sustainability and sporting performance and how this model positions Portugal within the European football economy. Design/methodology/approach The study combines institutional analysis with longitudinal quantitative panel analysis based on club-level financial and operational data from five seasons (2016/17–2020/21). Descriptive and trend analyses are complemented by cross-league benchmarking against the Big Five European leagues and the Dutch Eredivisie, as well as regression-based association models assessing the relationships among transfer activity, financial outcomes, and sporting performance. Findings Portuguese clubs operate predominantly as net exporters of talent, with transfer revenues constituting a central pillar of financial sustainability. Regression results reveal a strong positive association between net transfer balance and financial performance (approximately €0.46 increase in net results per €1 million of net transfer income), while sporting performance is primarily explained by structural factors, notably club hierarchy. Compared with both importer leagues and other exporter systems, Portugal exhibits the highest degree of transfer dependency, functioning as a talent-producing segment within the European football value chain. Although this model supports financial viability, it increases exposure to international market volatility. Originality/value By integrating global value chain theory with empirical panel evidence, this paper conceptualises Portuguese professional football as a transfer-dependent economic system and clarifies the differentiated financial and sporting effects of player transfers in smaller football economies.