Professional sports governance (2016)

The researcher examines the issue of corporate governance and its effects on the financial and on-the-field performance of UK football clubs, by analyzing a sample of 29 UK clubs over the period 2008-2014. Fixed effects regression panel data techniques are performed to assess the impact of specific corporate governance characteristics on the value and profitability of football clubs. The results indicate that a duality CEO structure is consistently correlated negatively with club value and revenue generation finding evidence related to agency theory. The researcher also finds evidence that board background homogeneity is correlated with higher financial performance. Previous literature provides arguments both in favor and against background homogeneity although it seems that in football a homogeneous board is able to cope with challenges easier. The results documented in this study could be of use for governing bodies of football which are the principals that organize the sport and set the governance rules around it.