Private equity i europæisk fodbold: En analyse af private equity-ejerskabets indvirkning på finansiel og sportslig performance i europæiske fodboldklubber

Abstract

In recent years, private equity (PE) firms have entered the European football industry marking a shift from traditional ownership models to investors with defined return expectations and value creation goals. Unlike many legacy owners, PE funds apply an investment philosophy rooted in financial engineering, governance engineering, and operational improvements, tools proven effective in traditional sectors but largely untested within the football industry. As football clubs represent a structural anomaly within traditional PE investment models, this development calls into question the applicability of PE’s value creation model in an industry characterised by a duality between financial and sporting objectives. Despite the rising number of PE transactions in football, academic literature remains limited, particularly regarding how PE ownership affects financial and sporting performance.This thesis addresses the research gap by asking: How does PE ownership affect the financial and sporting performance of football clubs in Europe’s top five leagues? To answer this question, the study tests seven hypotheses based on panel data from 139 clubs between the 2014/15 and 2023/24 seasons. The results show statistically significant effects of PE ownership on wage/turnover ratio (higher), revenue (higher), and capital expenditure on tangible assets (lower). The findings suggest a partial departure from PE’s value creation logic in favour of revenue-focused strategies, likely reflecting that football clubs are valued on revenue multiples rather than on EBITDA multiples. No significant effects were found on debt levels, net transfer balance, or league performance, suggesting that PE prioritises commercial value over on-pitch success. Importantly, the analysis shows that PE effects becomes more pronounced over time. In the post-COVID-19 period, PE-owned clubs achieved a significant reduction in wage/turnover ratios, indicating gradual implementation of PE’s value creation methods. The thesis concludes that while PE ownership has selective effects, the PE ownership model’s full potential may only materialise over a longer time horizon. This underscores the need for further research on how PE strategies interact with the structural realities of football.