Research Framework and Annotated Bibliography
Research Theoretical Framework
Financial performance in sports is defined as a series of budget goals, which helps clubs with issues such as competitive balance, increased shareholder’s interest, and reduced debt. Many theories and researchers have also been developed about the success of football clubs. Most of these theories are related to the success of football clubs. The research study is related to the evaluation of how football clubs maximize their financial performance and sports success as well. While evaluating the financial performance in sports, some literature review will be considered. From the literature review, it will be observed that some studies link financial ratios, elements of sportive performance, and financial performance. The literature review will also examine the relationship between the financial performance of football clubs and the various indicators sportive performance.
A number of scholars have also tried to study the link that exists between sport and financial performance in different sporting activities. For instance, Limperopulos and Dimitropoulos (2014) studied the relationship between the investments on the player contract and sports performance. They found out that football clubs with higher investment rate in players usually attain good sports performance in their competitions. Also, football clubs are expected to reach two different level of performance. They are supposed to win their respective competitions for placement in suitable positions. Moreover, football clubs are limited companies, therefore, they must ensure maximum profits to their respective shareholders.
The relationship between Financial Performance and Sporting Success
Football clubs require financial resources for smooth operations even after successfully completing the season (Houston & Wilson, 2