Developing a Unified Approach for Evaluation of Football Club

Abstract

home world cup 2018 should give an additional input to the development of all football organizations in Russia, and especially for the key players in this industry - football clubs. The main problem of domestic professional football remains to be its full dependence on budgetary financing and the absence of private investors. This could be solved by the development of a fair methodology for evaluating football clubs, taking into account the specifics of their activities and aimed at improving overall efficiency. The analysis carried out by the author showed that the approaches used today to assess the value of football clubs give inflated results, which leads potential investors into confusion and adversely affects the development of football industry. The calculations made it possible to provide a formula for calculating the value of football clubs, implying the calculation of an integrated indicator based on revenue, EBITDA, the value of squad, attendance of matches and the involvement of fans, measured through the social network Facebook. This methodology can be used as a single indicator of efficiency, taking into account the interests of all stakeholders of any football club: shareholders, fans and the state. The first are directly interested in increasing the value, which is achieved due to the growth of financial indicators. For fans, the sports result is always a priority, however, it also largely depends on the financial situation, and in part determines it. Finally, the state is given the opportunity to solve a number of social issues by the means of sport (in this case football) and also has the opportunity to relieve the financial burden of maintaining professional clubs and infrastructure by attracting private investors, which again will be the case only for efficient organizations . The practical value of such a model can be justified by the fact that the five indicators used in the calculations together cover all the key areas of the football club's work. Therefore, improving the results for each of them individually will improve overall efficiency.