Impact of COVID-19 Pandemic and Lockdown on the Activities of European Football Companies
Purpose: This paper aims to show the impact of the COVID-19 pandemic and lockdown on selected football companies' economic, financial, and sports situations. Design/Methodology/Approach: The first part of this research study discusses some particular points of the business strategy and risk management in the context of football companies’ management. Four football companies' economic and financial situation is presented, namely: Borussia Dortmund, Juventus Turin, Manchester United, and Olympique Lyonnais. The focus is on sports, economic and financial criteria to assess the standing of football companies. This paper combines the conclusions from secondary data analysis, content analysis of web¬sites as well as qualitative and quantitative analysis. The study also employs a comparative analysis. Findings: The COVID-19 pandemic and lockdown have become a new reality for all football companies. It is thought that limiting essential financial sources of football companies might be a good lesson for the future. Football companies without economic rationality will have more and more problems. The crisis revealed weak economic foundations of football companies – some of them have even received public aid. Practical Implications: Football companies need to take several actions: a) strengthen cooperation with shareholders, b) continuously search for new sources of financing, c) conclude extended sponsorship agreements, d) increase online sales of goods. Building a solid financial foundation and looking to the future can help football companies get through times of crisis and the COVID-19 pandemic. Originality/Value: Contemporary football companies (especially in Poland) need recommendations and guidance in the area of financial management. The conducted research provides material that may be helpful in the better financial management of football clubs.