Are publicly traded clubs acting differently than others?
Georgievski,Bojan Vasiljevic-Sikaleska,Aneta Petkovska,Ivona Zilbershtein,Doron
Georgievski,Bojan
Vasiljevic-Sikaleska,Aneta
Petkovska,Ivona
Zilbershtein,Doron
Abstract
The aim of this article is to analyze the behavior of football clubs. The basic sport premises stands that football clubs are not regular companies and the purpose of their existence is to maximize winning and not to focus on income generation. Many fans believe that clubs shouldn’t be concerned with income generation, and that win maximization, eventually leads to larger income generation. Hence, clubs, in general, behave differently and have different goals. The main objective of this study is to analyze whether football clubs that are listed on the stock exchange show different patterns of behavior towards their financial performance. If you are an investor, you expect your investment to maximize profit and to increase the gains on your money. Purpose of this analysis are football clubs that are publicly traded companies, and expectations that these clubs should show more profit-oriented behavior. The analysis is done on individual clubs from largest football clubs that are listed on the stock exchange. The estimated regression models on the profit, revenue and wages, results have shown that clubs which are listed on a stock exchange show a different pattern to win vs profit maximization. Some clubs are more concerned and focused on the financial aspect of football performance, while others are clearly more focused on their football goals, and much less focused on the financial performance. This article contributes in the analysis of behavior performance of football clubs. It shows that club management is the one determines the intention and the focus and the performance goal of the football clubs. The fact that a club is listed on the stock exchange, doesn’t make a difference and clubs that are listed on the stock exchange, doesn’t necessary mean they will be more interested in their financial performance.
Description
Publisher Copyright: © JPES.
Date
2022-04
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Volume Title
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Research Projects
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Keywords
income, international football, profit maximization, revenue of football clubs, win maximization
Citation
Georgievski, B, Vasiljevic-Sikaleska, A, Petkovska, I & Zilbershtein, D 2022, 'Are publicly traded clubs acting differently than others?', Journal of Physical Education and Sport, vol. 22, no. 4, 112, pp. 884-888. https://doi.org/10.7752/jpes.2022.04112
License
info:eu-repo/semantics/openAccess