Abstract

In the last few years, the economic literature has shown an increasing interest in the football industry. Therefore, the purpose of this paper is to investigate the relationship between financial performance and sporting performance in Italian football, by investigating the statistical evidences.

In order to do it, the financial indicators and sporting performance will be examined with regards to 29 clubs in Serie A (the highest official Italian football league) that participated in the league during the period 2011-2015. The data are collected from the financial statements of the clubs and have been processed into financial ratio indicators. The empirical statistical analysis has been carried out by means of correlation and regression analysis.

This research study empirically reveals that Italian clubs that are in good financial health, not indebted and that record higher revenues achieve the best sporting performance. This process is consistent with the “virtuous circle” theorized by the academic literature.

The application of this work can be extended to other national leagues by adding new ratios. On the other hand, the main limitation is related to the fact that the entry of foreign investors in recent years to Serie A could change this trend.

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