How effectively is financial mismanagement in football clubs being tackled?

Abstract

Financial mismanagement in football has become an increasingly serious and wide-spread problem within the sport in recent years, due to the fact that it undermines the notion of fair competition within football, it damages the integrity and reputation of the sport, and also leads to clubs ending up in financial turmoil as a result of illegal management practices by owners, directors and other individuals in charge of such entities, with these practices including money laundering, excessive spending and accounting offences. This dissertation titled, “How Effectively is Financial Mismanagement in Football Clubs Being Tackled?” addresses the issue of financial offences and mismanagement within football clubs, by closely examining local and European frameworks, regulations, and legislation. This study also seeks to criticize and evaluate the current mechanisms in place within such frameworks in order to deduce whether they are sufficient enough in tackling this issue in football, whilst recommending the changes that can be implemented within bodies such as the Malta Football Association, to effectively combat financial mismanagement in football. Through a qualitative research methodology, this study delves into in-depth analysis of the MFA Statute, Maltese Criminal Code, the UEFA Club Licensing and Financial Fair Play Regulations, and many other laws and regulations, while also examining numerous local and international cases and disputes pertaining to financial mismanagement in football clubs such as the Gzira Utd FC vs Sirens FC case, presided by the MFA Appeals Board, and the Galatasaray vs UEFA case, which took place in the Court of Arbitration of Sport. The Conclusion of this study proposes some possible changes to the footballing regulatory landscape currently in place, with intent to successfully tackle the prevalent issue of financial mismanagement in the sport.