Insolvency in French Soccer

Scelles, Nicolas and Szymanski, Stefan and Dermit-Richard, Nadine (2016): Insolvency in French Soccer.

Abstract

This paper examines insolvency at the highest levels of French soccer. Between 1970 and 2014 we observed 72 cases of insolvency arising from participation in the top two or three (since 1993) divisions. We find that demand (attendance) shocks can account for insolvency to a significant degree. We also find that insolvency can be explained by ownership structure, with the tradition Association form being more likely to lead to insolvency. We also examine the post-insolvency performance of soccer clubs and find that the adverse consequences of insolvency are long lasting.

• Item Type: MPRA Paper
• Language: English
• Keywords: insolvency, French soccer, attendance, demand shocks, ownership
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance > G33 - Bankruptcy ; Liquidation; G - Financial Economics > G3 - Corporate Finance and Governance > G38 - Government Policy and Regulation; L - Industrial Organization > L8 - Industry Studies: Services > L83 - Sports ; Gambling ; Restaurants ; Recreation ; Tourism

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