New methods of financing football clubs in developed countries and the developing countries have a comparative study

Subject Areas : Journal of Investment Knowledge

Taghi Torabi ¹ , Mahsa Ghorbani ² , Meysam Bagheri ³ , Samaneh Tarighi ⁴

1 - Associate Professor, Faculty member of the Islamic Azad University, Science and Research Branch
2 - Ph.D Student in financial management,Allameh Tabatabai University (Corresponding Author)
3 - Ph.D Student in financial management,Allameh Tabatabai University
4 - PhD student in Economics, Islamic Azad University, Science and Research Branch

Received: 2014-10-04 Accepted : 2015-01-04 Published : 2015-01-04

Keywords: Financial, Comparative Study, professional football clubs in, Iran, England,

Abstract :

The main objective of this comparative study is to see how professional football clubs in Iran and England’s premier league are financed. This applied research has been conducted in a descriptive and analytical way. The results of the study showed that there is a significant difference between the ways through which English and Iranian professional football league clubs are financed. Most Iranian clubs are funded by government and industry-based sources (65%) while most English clubs are private and are funded by television broadcasting rights (31%), match-day income and cash flow from business (22%). Some major barriers to financing Iranian professional football league clubs are as follows; the state-run clubs, lack of financial transparency , the fact that IRIB refuses to pay the media broadcasting right to the clubs, failure in complying with copyright law in Iran , inappropriate competition schedules, unsuccessful club marketing management, club managers lack of awareness about new methods of financing , limited use of creative sport directors with financial and business expertise at different levels of football industry