Impact of on-field football success on the off-field financial performance of AFL football clubs

Authors: Pinnuck, Matt; Potter, Brad

Source: Accounting and Finance, Volume 46, Number 3, September 2006 , pp. 499-517(19)

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Abstract:

In this study, we examine the factors that contribute to the financial performance of clubs in the Australian Football League over the period from 1993 to 2002. Primarily, we examine the association between the on-field football success of clubs and their level of off-field financial performance. We find that match attendance is positively related to both short-term and long-term success of football clubs and also to the uncertainty as to the match outcome (i.e. the expected closeness of the match). We also find that club membership is highly persistent and is positively related to both the past football success of the club and the marketing expense incurred. Finally, we find that there is a significant association between the level of marketing revenue and the level of on-field success in the prior 2 years.

Keywords: Australian Football League; Financial performance; Football; Match attendance; M41

Document Type: Research article

DOI: http://dx.doi.org/10.1111/j.1467-629X.2006.00179.x

Affiliations: 1: Department of Accounting and Business Information Systems, The University of Melbourne, Melbourne, 3010, Australia

Publication date: 2006-09-01