Off Pitch: Football's Financial Integrity Weaknesses, and How to Strengthen
Off Pitch: Football’s financial integrity weaknesses, and how to strengthen them Matt Andrews and Peter Harrington CID Working Paper No. 311 January 2016 Copyright 2016 Andrews, Matt; Harrington, Peter; and the President and Fellows oF Harvard College Working Papers Center for International Development at Harvard University Off Pitch: Football’s financial integrity weaknesses, and how to strengthen them Matt Andrews and Peter Harrington1 Abstract Men’s professional football is the biggest sport in the world, producing (by our estimate) US $33 billion a year. All is not well in the sector, however, with regular scandals raising questions about the role of money in the sport. The 2015 turmoil around FIFA is obviously the most well known example, creating a crisis in confidence in the sector. This study examines these questions, and the financial integrity weaknesses they reveal; it also offers ideas to strengthen the weaknesses. The study argues that football’s financial integrity weaknesses extend far beyond FIFA. These weaknesses have emerged largely because the sector is dominated by a small elite of clubs, players and owners centered in Europe’s top leagues. The thousands of clubs beyond this elite have very little resources, constituting a vast base of ‘have-nots’ in football’s financial pyramid. This pyramid developed in recent decades, fuelled by concentrated growth in new revenue sources (like sponsorships, and broadcasting). The growth has also led to increasingly complex transactions—in player transfers, club ownership and financing (and more)—and an expansion in opportunities for illicit practices like match-fixing, money laundering and human trafficking. We argue that football’s governing bodies – including FIFA – helped establish this pyramid.
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