Bankruptcy trends among european football clubs

Abstract

This study analyzes bankruptcy patterns and their influence on the on-field success of seven prominent European football clubs traded on their countries’ respective stock exchanges. During the period between 2008 and 2020, the current study reveals how these clubs perform financially benchmarked against respective well-established bankruptcy scores. By using Altman’s Z score (Altman, 1968), Springate’s S score (Springate, 1978), and Zmijewski’s X score (Zmijewski, 1984), we are analyzing the financial stability of football clubs and how it impacts the on-field results and success of these football clubs. This paper concludes that most clubs show bankruptcy tendencies, which affect their sporting success.