Evaluation of management system quality: Case of professional football clubs

Abstract

In this paper the quality of management system of football clubs is investigated on the base of most popular financial indicators, used for assessment of company's effectiveness: brand value of football club, earnings before interest, taxes, depreciation and amortization (EBITDA) and market value of football club's shares. This is done in order to assess the impact of investments in acquisition of players' registrations to external indicators of management system quality of football clubs. The study was conducted using regression analysis in STATA package. Data comprises 22 European football clubs listed on international stock exchanges. To evaluate the effectiveness of football club's management system econometric models of brand value of football club, EBITDA and market value of club's shares were developed. As a result of the research investments in players' registrations were determined as statistically significant factor in all three proposed models of evaluation of management system quality. Thus, optimal investment in the players' registrations can be considered as a tool to improve efficiency of football club's management system.