| By: |
Egon Franck (Department of Business Administration (IBW), University of Zurich) |
| Abstract: |
The new UEFA Club Licensing and Financial Fair Play Regulations have
encountered stiff criticism. The concerns are that the new regulations may
harm football in three different ways: By forgoing the potential benefits from
substantial injections of “external” money into payrolls, by restricting
competition in the player market without at the same time achieving benefits
from more balanced competition, and by creating some sort of barrier to entry
which could “freeze” the current hierarchy of clubs. It is the purpose of this
paper to take these concerns as a starting point for discussing the true
objectives of the new regulations. As a by-product it will become obvious why
and in which points the concerns are unfounded. |
| Keywords: |
Financial Fair Play, Soft Budget Constraints, Hard Budget Constraints, Moral Hazard, Rent-Seeking, Sugar Daddies, Competitive Balance, “Ossification” |
| Date: |
2013–06 |
| URL: |
http://d.repec.org/n?u=RePEc:zrh:wpaper:328&r=spo |