Football players and asset manipulation: the management of football transfers in Italian Serie A

Research question: We consider player trading as one of the distinctive features football clubs’ business models and how these have been influenced since implementation Financial Fair Play (FFP). Considering Italian financial economic context in sector, we investigate whether Serie A clubs adopt earnings manipulation a result players’ rights.Research methods: The empirical analysis includes competing from 2005 to 2018. Using an unbalanced panel dataset composed 275 club-year observations (38 different clubs), our estimations are run by using fixed effects OLS models. Clubs’ net capital income sales players is used proxy earning manipulation. control for performance, size reputation.Results: Findings: By applying Bartov’s model based on asset sales, results confirm adoption behaviours industry, wherein rights preponderant item affecting performance. Specifically, significant positively linked with profitability, while leverage after introduction FFP especially most prominent clubs.Implications: Our that has chronically dependent maintain their sustainability. UEFA’s regulations could be assessed modified enable them prevent reveal real activities dynamics behind transfer market (profit smoothing behaviours).