Effect of financing, fan stadium attendance, governance, and human capital on the performance of soccer clubs

Abstract

Introduction: Soccer is one of the most globally recognized and profitable industries in the entertainment sector. Objective: This study examines the impact of financing, fan stadium attendance, governance, and human capital on the performance of Ethiopian Premier League soccer clubs. Methodology: A correlational study was conducted with a sample of n = 312 players, selected from a total population of N = 390 using simple random sampling. Data were collected using a 19-item questionnaire on a 7-point Likert scale, ensuring validity and reliability. A 98.4% response rate was achieved. Descriptive statistics (percentages, means, and standard deviations), correlation analysis, and multiple linear regression were conducted at a 95% confidence level. Results: Findings revealed the following mean scores and standard deviations: fan stadium attendance (M = 3.61, SD = 0.408), financing (M = 3.92, SD = 0.539), governance (M = 4.07, SD = 0.406), and human capital (M = 3.60, SD = 0.828). Correlation analysis showed a significant positive relationship between fan stadium attendance (r (307) = .149, p < .05), financing (r(307) = .663, p < .001), governance (r(307) = -.300, p < .001), and human capital (r(307) = .167, p < .05) with soccer club performance. Collectively, these factors account for 51.9% of the variance in soccer club performance, with 48.1% attributed to other factors. Conclusion: Effective financial management and governance play a crucial role in enhancing Ethiopian Premier League soccer club performance. Future research should explore additional factors such as infrastructure, political stability, and technological advancements to further improve club standards.