27/11/2023

A study by UIC Barcelona shows clubs that comply with financial fair play have better sport performance

Pablo Agnese, lecturer for the Faculty of Economic and Social Sciences at UIC Barcelona, has conducted research in cooperation with the University of Navarra that analyses the relationship between a club’s wage expenses and sport performance

The study titled “Comply or not to comply? How a UEFA wage-to-revenue requirement might affect the sport and managerial performance of soccer clubs,” was written by Lecturer Pablo Agnese, in cooperation with Pedro García del Barrio, from the University of Navarra. The two lecturers affirm that clubs that comply with the UEFA financial fair play regulations not only reduce the risk of financial problems, but also have a better sport performance.

The study analyses the relationship between good financial responsibility and better sport performance. The researchers analysed the four main European leagues (La Liga, Serie A, Ligue 1 and Premier League), measuring the quality of the teams through annual wages, with the wage-to-revenue ratio as a measure for financial responsibility.

The research reveals that clubs complying with the UEFA’s financial fair play regulations not only reduce the risk of financial problems, but also have better sport performance. In addition, financial responsibility increases the chance that clubs have qualify for UEFA competitions, such as the Champions League and the Europa League. 

Moreover, Agnese and Garcia del Barrio also address the impact of financial fair play regulations on the competitive balance of teams playing in European leagues. The study supports the idea that financial stability, promoted by UEFA’s financial fair play rules, not only reduces the risk of financial failures, but also contributes to higher performance on the playing field.