A valuation of football companies between tangible and intangible values: A preliminary study

Journal title CORPORATE GOVERNANCE AND RESEARCH & DEVELOPMENT STUDIES
Author/s Francesco Laviola, Fernando Camastra, Annabella Conturso, Roberto de Renzi
Publishing Year 2024 Issue 2023/2
Language Italian Pages 28 P. 65-92 File size 0 KB
DOI 10.3280/cgrds2-2023oa16978
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This study delves into the dynamic world Football Club Valuations, an area rich in economic and cultural significance. It addresses the complex issue of which factors most profoundly influence the enterprise value of a football club. Central to the hypothesis is the notion that a club’s infrastructural investments, player salaries, and on-field successes are determining factors in its financial value. To test this, and the other hypotheses of the study, the research employs a rigorous quantitative approach, utilizing multiple linear regression analysis, to investigate the factors influencing the enterprise value of European football clubs. Examining data from 28 prominent clubs between 2018 and 2023, our research focuses on infrastructural investments, player salaries, team value, and on-field performance. The results of this study are revealing, demonstrating a clear correlation between the hypothesized factors and club valuations, with infrastructural investments and player salaries emerging as key determinants of club valuation. The integration of a polynomial transformation for team value captures its complex, non-linear relationship with enterprise value. The model provides nuanced insights for football club stakeholders and managements. What distinguishes this work is its pioneering integration of financial acumen with a deep understanding of the unique cultural and economic landscape of football and reveals, how the dynamics of investment in infrastructure and player salaries, along with success in international competitions, significantly and complexly influence the corporate value in the football sector, offering a new framework for analyzing enterprise value in football.

Keywords: ; enterprise value; football club valuations; infrastructural investments; player salaries; financial variables

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Francesco Laviola, Fernando Camastra, Annabella Conturso, Roberto de Renzi, A valuation of football companies between tangible and intangible values: A preliminary study in "CORPORATE GOVERNANCE AND RESEARCH & DEVELOPMENT STUDIES" 2/2023, pp 65-92, DOI: 10.3280/cgrds2-2023oa16978