Soft Budget Constraints in French Football through Public Financing of Stadiums

Several football stadiums were built or renovated in France for hosting the 2016 UEFA European Football Championship. This study examines to what extent financial support by local governments stadium construction renovation induces soft budget constraints (SBC) professional sports clubs. We address research question based on a quantitative case context of and eight that took place between 2012 2016. Our data shows public sector financed average 78% new stadiums’ total costs, paid 60% annual rental costs. The results indicate French are “supporting organizations” help ensure sustainability viability clubs allowing them benefit from flexibility, which typical characteristics SBCs. In total, we identify 32 forms aid classified according different categories “softness” whether these aids appeared ex ante post. Public constituted was sometimes very substantial, amounting several million euros each case. is often not taken into account regulatory authorities thus could be interpreted as hidden government subsidies clubs, some cases exceeded subsidy allowance €2.3 million.