Storm, R. and Nielsen, Klaus (2012) Soft budget constraints in professional football. European Sport Management Quarterly 12 (2), pp. 183-201. ISSN 1618-4742.
Abstract
Professional football in Europe is characterized by persistent deficits and growing debts among the majority of the top league clubs. Despite these problems, the clubs have an abnormally high survival rate. This paper focuses on this apparent paradox and poses the question: Why do only very few European professional football clubs go out of business even though they operate chronically on the edge of financial collapse? The paper argues that the paradox can be explained by the fact that professional football clubs operate within soft budget constraints in a way which is similar to the role of large companies in socialist economies – a phenomenon which was first identified by the Hungarian Economist János Kornai.
Metadata
| Item Type: | Article |
|---|---|
| Keyword(s) / Subject(s): | soft budget constraints, European professional football, economics of sport |
| School: | Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School |
| Research Centres and Institutes: | Birkbeck Sport Business Centre, Innovation Management Research, Birkbeck Centre for |
| Depositing User: | Administrator |
| Date Deposited: | 05 Jun 2013 11:54 |
| Last Modified: | 02 Aug 2023 17:05 |
| URI: | https://eprints.bbk.ac.uk/id/eprint/7247 |
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