APPLYING GREY RELATINAL ANALYSIS TO ITALIAN FOOTBALL CLUBS: A MEASUREMENT OF THE FINANCIAL PERFORMANCE OF SERIE A TEAMS

Abstract

Extant literature on the financial analysis of football clubs has applied a vast array of techniques in determining the fiscal stability of such entities. Although many studies have provided useful comparisons and analyses of the states of various clubs, direct research comparing the financial performance among various clubs is still scant. Hence, we present an application of financial ratio analysis to the greater Italian football market within the Serie A. The main purpose of this study is to assess the financial performance of the top three Italian football clubs currently listed on the Borsa Italiana (Italian Stock Exchange), those being: Juventus F.C., A.S. Roma, and S.S. Lazio. In accomplishing this, we offer a comparative analysis of these clubs through the usage of grey relational analysis (GRA), an optimal performance technique derived from engineering. Overall, our results suggest that S.S. Lazio appears to be the most financially stable club among the sampled, publicly traded Serie A teams. In light of these findings, this study furthers the application of economic evaluation into larger segments of international football.