Publication details
A critical analysis of too prominent to fail in times of Neymar
| Authors | |
|---|---|
| Year of publication | 2019 |
| Type | Article in Proceedings |
| Conference | European Financial Systems 2019 Proceedings of the 16th International Scientific Conference |
| MU Faculty or unit | |
| Citation | |
| Web | https://www.researchgate.net/publication/340023384_A_Critical_Analysis_of_Too_Prominent_to_Fail_in_Times_of_Neymar |
| Keywords | Football; too big to fail; UEFA; FFP; transfer sums |
| Description | Sales of football, the world's most popular sport increased worldwide by nine percent from 2009-2013. In times of revenue growth, however, spending has increased disproportionately. Media, fans and even scientists are wondering how the future financial situation of football companies will look like at a time when a club like Paris Saint-German is paying over EUR 200 million for player Neymar. The aim of the article is to analyze, if football companies have a higher survival rate. This serves as a basis for discussing whether football companies are "too big to fail". For this purpose, current article contributions and studies are analyzed with regard to the topic. In order to prevent the cycle of indebtedness on the football market, more regulation is needed. After the financial crisis from 2007 onwards, the excesses of the financial industry could be contained through increased regulation. In the football sector, UEFA is attempt-ing to impose stricter budget restrictions in the form of the "Financial Fair Plays". The transfer of Neymar in 2017 for more than EUR 200 million proves that the clubs can by-pass the FFP. As in the financial industry and the "too big to fail" doctrine, this is still based on subjective assumptions of the supporting organizations. It can be assumed that the increasing transfer sums will increase the systematic risks in the future. In addition, it must be determined whether football companies will eventually be "too big to save". An improved approach to financial fair play could force football companies to balance their economies, leading to a lower rate of bankruptcy on the football market. |