The Impact of Foreign Ownership in Czech Football
Vol.15,No.1(2021)
Foreign ownership in European football has been rapidly increasing especially in the last two decades. Although the main interest for the foreign investors are the teams of Big 5 leagues, there are some occasional surprises. One of the surprises is the oldest football team in Czech football, SK Slavia Prague. This study investigates the impact of Slavia’s takeover on Czech First Division. First a stochastic frontier analysis is conducted and efficiency scores are estimated. The results indicate that Slavia’s athletic efficiency has improved significantly after the takeover. The transfer activity in the league increased greatly thanks to Slavia’s additional funds allocated to transfers and also it should be noted that Slavia’s domestic transfers have created an opportunity for the other teams to improve their finances. Finally, the overall competitive balance in the league improved after the takeover despite Slavia’s dominance in the league after the takeover.
Foreign Ownership; Czech First Division; Competitive Balance; Stochastic Frontier Analysis
63–70
Barros, C. P., & Rossi, G. (2014). A Bayesian stochastic frontier of Italian football. Applied Economics, 46(20), 2398-2407. https://doi.org/10.1080/00036846.2014.902023
Battese, G., & Coelli, T. J. (1995). A Model For Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data. Empirical Economics, 20(2), 325-332. https://doi.org/10.1007/BF01205442
Bureš, M. (2019a, February 4). Who owns Czech football clubs? Retrieved April 2020, from FINANCE.cz: https://www.finance.cz/519177-vlastnici-fotbalovych-klubu-sparta/ (In Czech)
Bureš, M. (2019b, February 5). Who owns Czech football clubs? - II. Retrieved April 2020, from FINANCE.cz: https://www.finance.cz/519323-kdo-vlastni-ceske-fotbalove-kluby-ii/ (In Czech)
Bureš, M. (2019c, February 8). Who owns Czech football clubs? -III. Retrieved April 2020, from FINANCE.cz: https://www.finance.cz/519358-vlastnici-fotbalovych-klubu-iii/ (In Czech)
Dawson, P., Dobson, S., & Gerrard, B. (200). Stochastic Frontiers and the Temporal Structure of Managerial Efficiency in English Soccer. Journal of Sports Economics, 1(4), 341-362. https://doi.org/10.1177/152700250000100402
Frick, B., & Simmons, R. (2008). The Impact of Managerial Quality on Organizational Performance: Evidence from German Soccer. Managerial and Decision Economics, 29(7), 593-600. https://doi.org/10.1002/mde.1431
Fulham FC. (n.d.). Mohamed Al Fayed. Retrieved April 2020, from Fulham FC - History: https://www.fulhamfc.com/history/mohamed-al-fayed
Gosling, T. (2017, June 6). 'Communist money' saves anti-communist Prague football club. Retrieved May 2020, from Deutsche Welle(DW): https://www.dw.com/en/communist-money-saves-anti-communist-prague-football-club/a-39128129
Herm, S., Callsen-Brecker, H.-M., & Kreis, H. (2014). When the crowd evaluates soccer players’ market values: Accuracy and evaluation attributes of an online community. Sport Management Review, 17(4), 484-492. https://doi.org/10.1016/j.smr.2013.12.006
Kern, A., Schwarzmann, M., & Wiedenegger, A. (2012). Measuring the efficiency of English Premier League football: A two-stage data envelopment analysis approach. Sport, Business and Management: An International Journal, 2(3), 177-195. https://doi.org/10.1108/20426781211261502
Kern, M., & Süssmuth, B. (2005). Managerial Efficiency in German Top League Soccer: An Econometric Analysis of Club Performances On and Off the Pitch. German Economic Review, 6(4), 485-506. https://doi.org/10.1111/j.1468-0475.2005.00143.x
Kirschstein, T., & Liebscher, S. (2019). Assessing the market values of soccer players – a robust analysis of data from German 1. and 2. Bundesliga. Journal of Applied Statistics, 46(7), 1336-1349. https://doi.org/10.1080/02664763.2018.1540689
KPMG. (2020, January 28). Key motivations behind buying a professional football club. Retrieved April 2020, from Football Benchmark: https://www.footballbenchmark.com/library/key_motivations_behind_buying_a_professional_football_clubs
Michie, J. (2000). The Governance and Regulation of Professional Football. The Political Quarterly, 71(2), 184-191. https://doi.org/10.1111/1467-923X.00293
Michie, J., & Oughton, C. (2005). The corporate governance of professional football clubs in England. Corporate Governance: An International Review, 13(4), 517-531. https://doi.org/10.1111/j.1467-8683.2005.00446.x
Özaydın, S., & Donduran, M. (2019). An Empirical Study of Revenue Generation and Competitive Balance Relationship in European Football. Eurasian Journal of Business and Economics, 12(24), 17-44. https://doi.org/10.17015/ejbe.2019.024.02
Procházka, D. (2012). Financial Conditions and Transparency of the Czech Professional Football Clubs. Prague Economic Papers, 4, 504-521. https://doi.org/10.18267/j.pep.437
Racek, O., Zeman, T., Pruša, V., & Semerád, P. (2015). Consumer Decision-Making of Football Fans in the Czech Republic. Studia Sportiva, 9(1), 237-247. https://doi.org/10.5817/StS2015-1-30
Ribeiro, A. S., & Lima, F. (2012). Portuguese football league efficiency and players’ wages. Applied Economic Letters, 19(6), 599-602. https://doi.org/10.1080/13504851.2011.591719
Rohde, M., & Breuer, C. (2016). The Financial Impact of (Foreign) Private Investors on Team Investments and Profits in Professional Football: Empirical Evidence from the Premier League. Applied Economics and Finance, 3(2), 243-255. https://doi.org/10.11114/aef.v3i2.1366
Scholz, P. (2016a). Czech football hooligans’ behavior. Journal of Physical Education and Sport, 16(2), 1089-1094.
Scholz, P. (2016b). Football fan behavior of the oldest club in the Czech Republic. Journal of Physical Education and Sport, 16(1), 694-698.
Smolík, J. (2012). Football Hooligans in the Czech Republic: Selected Topics. Kultura-Społeczeństwo-Edukacja, 2, 75-95. https://doi.org/10.14746/kse.2012.2.07
Wilson, R., Plumley, D., & Ramchandani, G. (2013). he relationship between ownership structure and club performance in the English Premier League. Sport, Business and Management: An International Journal, 3(1), 19-36. https://doi.org/10.1108/20426781311316889
Xinhua. (2017, November 25). Xinhuanet. Retrieved April 2020, from Chinese investment leads oldest Czech football team to championship: http://www.xinhuanet.com/english/2017-11/25/c_136778624.htm
Zelenkov, Y., & Solntsev, I. (2017). Measuring the efficiency of Russian Football Premier League clubs. Electronic Journal of Applied Statistical Analysis, 10(3), 773-789.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Copyright © 2021 Studia sportiva