Effectiveness of UEFA's regulation for European football financial management: A comprehensive systematic review and meta-analysis

Background: The Union of European Football Association's (UEFA) Financial Fair Play (FFP) regulations are a topic of ongoing debate. This study aims to evaluate and quantify the FFP's effect on clubs' financial performance and critically review the regulatory changes introduced by the...

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Main Authors: Jorge Martín-Magdalena, Susana De los Ríos-Sastre, Raquel Redondo, David Alaminos
Format: Article
Language:English
Published: Elsevier 2024-10-01
Series:Heliyon
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2405844024151821
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author Jorge Martín-Magdalena
Susana De los Ríos-Sastre
Raquel Redondo
David Alaminos
author_facet Jorge Martín-Magdalena
Susana De los Ríos-Sastre
Raquel Redondo
David Alaminos
author_sort Jorge Martín-Magdalena
collection DOAJ
description Background: The Union of European Football Association's (UEFA) Financial Fair Play (FFP) regulations are a topic of ongoing debate. This study aims to evaluate and quantify the FFP's effect on clubs' financial performance and critically review the regulatory changes introduced by the UEFA in 2022 through the new Financial Sustainability Regulations (FSR). Methods: A systematic review and meta-analysis were conducted using the Web of Science and Scopus databases up to December 31, 2023, following the Preferred Reporting Items for Systematic Reviews and Meta-Analysis (PRISMA) statement. Results: This systematic review included 22 articles; a meta-analysis was conducted on 52 financial measures derived from 20 studies of 11 articles. The meta-analysis’ main result—obtained by comparing two different financial measures (profitability versus solvency)—revealed that FFP's effect on profitability measures was significant, with a value of 0.151 (p = 0.050); however, the effect size for solvency measures was not significant, with a value of 0.049 (p = 0.639). Contributions: This systematic review revealed variability in the results of the studies analysed, reflecting contextual factors' influence, which underlines the need for a more adaptive and specific approach to clubs’ financial control policies. The meta-analysis found that the type of financial measure employed (profitability versus solvency) was a notable source of variability among the studies, as its moderating effect was significant. Consequently, the FFP exerted contrasting effects on profitability and solvency. Limitations: A significant level of heterogeneity was observed in the financial measures analysed, predominantly because of the different samples and periods across the included studies. Conclusions: This study corroborates FFP's mixed and limited impact on financial performance, highlighting the need for stricter control in European football, which aligns with the new FSR. Our study underscores aspects that future research should address to deepen knowledge of UEFA regulations' efficiency in enhancing football's financial sustainability.
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spelling doaj-art-38d89a87bbae401fbfb54a2bac20ba4a2025-08-20T02:13:59ZengElsevierHeliyon2405-84402024-10-011020e3915110.1016/j.heliyon.2024.e39151Effectiveness of UEFA's regulation for European football financial management: A comprehensive systematic review and meta-analysisJorge Martín-Magdalena0Susana De los Ríos-Sastre1Raquel Redondo2David Alaminos3Universidad Pontificia Comillas Alberto Aguilera 23, 28015, Madrid, Spain; Corresponding author.Universidad Pontificia Comillas Alberto Aguilera 23, 28015, Madrid, SpainUniversidad Pontificia Comillas Alberto Aguilera 23, 28015, Madrid, SpainUniversity of Barcelona, Avda. Diagonal, 690, 08034, Barcelona, SpainBackground: The Union of European Football Association's (UEFA) Financial Fair Play (FFP) regulations are a topic of ongoing debate. This study aims to evaluate and quantify the FFP's effect on clubs' financial performance and critically review the regulatory changes introduced by the UEFA in 2022 through the new Financial Sustainability Regulations (FSR). Methods: A systematic review and meta-analysis were conducted using the Web of Science and Scopus databases up to December 31, 2023, following the Preferred Reporting Items for Systematic Reviews and Meta-Analysis (PRISMA) statement. Results: This systematic review included 22 articles; a meta-analysis was conducted on 52 financial measures derived from 20 studies of 11 articles. The meta-analysis’ main result—obtained by comparing two different financial measures (profitability versus solvency)—revealed that FFP's effect on profitability measures was significant, with a value of 0.151 (p = 0.050); however, the effect size for solvency measures was not significant, with a value of 0.049 (p = 0.639). Contributions: This systematic review revealed variability in the results of the studies analysed, reflecting contextual factors' influence, which underlines the need for a more adaptive and specific approach to clubs’ financial control policies. The meta-analysis found that the type of financial measure employed (profitability versus solvency) was a notable source of variability among the studies, as its moderating effect was significant. Consequently, the FFP exerted contrasting effects on profitability and solvency. Limitations: A significant level of heterogeneity was observed in the financial measures analysed, predominantly because of the different samples and periods across the included studies. Conclusions: This study corroborates FFP's mixed and limited impact on financial performance, highlighting the need for stricter control in European football, which aligns with the new FSR. Our study underscores aspects that future research should address to deepen knowledge of UEFA regulations' efficiency in enhancing football's financial sustainability.http://www.sciencedirect.com/science/article/pii/S2405844024151821Financial fair playFinancial performanceFootballSystematic reviewMeta-analysis
spellingShingle Jorge Martín-Magdalena
Susana De los Ríos-Sastre
Raquel Redondo
David Alaminos
Effectiveness of UEFA's regulation for European football financial management: A comprehensive systematic review and meta-analysis
Heliyon
Financial fair play
Financial performance
Football
Systematic review
Meta-analysis
title Effectiveness of UEFA's regulation for European football financial management: A comprehensive systematic review and meta-analysis
title_full Effectiveness of UEFA's regulation for European football financial management: A comprehensive systematic review and meta-analysis
title_fullStr Effectiveness of UEFA's regulation for European football financial management: A comprehensive systematic review and meta-analysis
title_full_unstemmed Effectiveness of UEFA's regulation for European football financial management: A comprehensive systematic review and meta-analysis
title_short Effectiveness of UEFA's regulation for European football financial management: A comprehensive systematic review and meta-analysis
title_sort effectiveness of uefa s regulation for european football financial management a comprehensive systematic review and meta analysis
topic Financial fair play
Financial performance
Football
Systematic review
Meta-analysis
url http://www.sciencedirect.com/science/article/pii/S2405844024151821
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AT raquelredondo effectivenessofuefasregulationforeuropeanfootballfinancialmanagementacomprehensivesystematicreviewandmetaanalysis
AT davidalaminos effectivenessofuefasregulationforeuropeanfootballfinancialmanagementacomprehensivesystematicreviewandmetaanalysis