Football finance and Covid-19

Alabi, M. and Urquhart, A. ORCID: https://orcid.org/0000-0001-8834-4243 (2023) Football finance and Covid-19. Sports Economics Review, 4. 100021. ISSN 2773-1618 doi: 10.1016/j.serev.2023.100021

Abstract/Summary

This study looks at the financial performance of top English football clubs to understand the impact of the Covid-19 pandemic. Our analysis focuses on English Premier League (EPL) and English Football League (EFL) clubs that have participated at least once in England’s highest league, the EPL. Using panel data methodology from 36 clubs between 2005 – 2021, we quantify the impact and severity of Covid-19 on top English football clubs’ financial performance. We find statistically significant evidence that profitability deteriorated during the pandemic with EPL clubs more reliant on matchday revenue the most impacted. Both financial stability and indebtedness deteriorated during the pandemic but the deterioration was not statistically significant. EFL clubs were the most impacted by reduced financial stability and increased indebtedness. These findings are vital for football’s regulators as it provides empirical evidence on the stability of the industry and also provides insights football club owners on strategies they can adopt to survive during external shocks to the industry.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/113889
Identification Number/DOI	10.1016/j.serev.2023.100021
Refereed	Yes
Divisions	Henley Business School > Finance and Accounting
Publisher	Elsevier
Download/View statistics	View download statistics for this item