UEFA's Financial Fair Play (FFP) regulations: empirical incidence of FFP criteria in the context of Mozambican football clubs, 2024

Abstract

In recent years, football has strengthened as a relevant economic activity in the world as well as in Mozambique. However, even moving a large amount of resources, football clubs are often not efficient from an economic and financial point of view. Thus, this research analyzes the adequacy of the UEFA FFP criteria in Mozambican football clubs competing in the first league (Mozambique). The research is exploratory, with a quantitative approach where data from 10 clubs that participated consecutively in the first football league between 2018 and 2022 were analyzed. In the theoretical review, it was evident that the main focus of the FFP is to ensure the financial sustainability of football by preventing financial doping. The results showed that clubs do not disclose their activity and financial reports in a transparent manner. In the criterion of financial stability, they present a revenue deficit, since these are lower than the relevant expenditure. Finally, the ratio of the cost of flocking is above 90% set by the FFP. However, it can be understood that football management in Mozambique requires the implementation and monitoring of instruments that stimulate the development and economic stability of clubs, prioritizing investment in long-term projects, for example youth development and construction of infrastructures and sports academies. This study contributes to the literature on the licensing criteria of clubs participating in professional competitions, suggesting a review and adaptation of the instrument used by licensing bodies in the Mozambican context.