The Relationship Between Team Performance and Revenue in the J.LEAGUE by Panel Analysis

Abstract

The purpose of this study was to examine the relationship between club performance and revenue in Japanese professional football clubs. In Europe, Union of European Football Association (UEFA) decided to introduce financial fair play (FFP) for the purpose of the sound management for all clubs. In Japan, J.LEAGUE decided to introduce the club license system in 2013. In this way, the importance for the management of J.LEAGUE club would increase. This paper examined, the relationship between revenue and club performance in the J.LEAGUE club by making use of analyzing the panel data from 2005 to 2010. As a result, two-way fixed effect model was selected. This implied that there were differences among each club and there were time effects between seasons. From the scale of fixed effect, clubs in metropolis were not always profitable. And we found that club's performance do not significant affect the revenue.