Financial regulation of professional football in Ghana

Abstract

Football clubs have multiple stakeholders sometimes with different and conflicting objectives. If a club concentrates solely on achieving sporting success at the expense of its financial objectives, it risks jeopardizing its long-term stability, which may affect the sporting integrity of the league as a whole. The behaviour of one club potentially has externality implications for other stakeholders which cannot always be internalised. There is therefore the need for regulation of the pre-emptive type to avert such negative consequences for clubs. FIFA has requested all member associations to implement club licensing to improve upon professionalism in management and to ensure long-term stability of club football. This thesis picks up on this theme to review the financial regulatory system in Ghana, obtain lessons from other jurisdictions and develop an incentive-based context-specific Football Financial Clearinghouse framework that is applicable in Ghana. The thesis employs a mixed-method research approach to evaluate the financial disclosure, position and performance of professional football clubs in Ghana, utilising critical reviews, interviews, focus group discussions and questionnaires to answer specific research questions. The empirical analysis in this thesis shows that financial licensing and monitoring needs to be complemented by the provision of incentives and support services to clubs to achieve optimal regulatory compliance. The key incentive in the specific case of Ghana is to ensure regulated access to credit. This thesis makes four significant contributions to knowledge by showing that: Ghanaian football clubs are in a difficult financial situation; there is an appetite for change amongst Ghanaian football’s stakeholders for a new financial regulatory framework; the existing financial regulatory frameworks, especially in Europe, are not applicable in the Ghanaian context as they were made for a different jurisdiction; and that the FFC framework would be an appropriate context-specific framework to deal with the financial regulation of Ghanaian football clubs.