Evans, Richard (2023) The ‘S-Score’ of financial sustainability for professional football clubs. Working Paper. Birkbeck Sport Business Centre, London, UK.
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Abstract
This paper extends the extensive literature on business failure and, in particular, develops the approach of Altman (1968, 2000) to provide quantified recommendations for the financial sustainability of football clubs. The paper uses multiple discriminant analysis and uniquely identifies financial models that delineate between professional football clubs that experience insolvency events and those that do not. These produce a financial sustainability score (‘S-score’) and are introduced for football clubs in the English Football League (EFL) in four scenarios that have caused insolvency. The models suggest minimum financial tolerances for accounting ratios to provide a reasonable level of resilience for the financial sustainability of clubs in each scenario. The results are relevant for academics and non-academics with an interest in the business of football, professional football clubs aiming to avoid financial distress and specifically, the Regulator that the UK government has proposed for football in England.
Metadata
| Item Type: | Monograph (Working Paper) |
|---|---|
| Additional Information: | Birkbeck Sport Business Centre Research Paper Series 15(1) - ISSN: 1756-8811 |
| Keyword(s) / Subject(s): | Business failure, football club finance, financial regulation, multiple discriminant analysis |
| School: | Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School |
| Research Centres and Institutes: | Birkbeck Sport Business Centre |
| Depositing User: | Administrator |
| Date Deposited: | 21 Aug 2023 12:59 |
| Last Modified: | 30 Jun 2024 03:58 |
| URI: | https://eprints.bbk.ac.uk/id/eprint/51807 |
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