Is debt always bad? An analysis of soccer clubs with overdrawn liabilities

Abstract

This study aimed to understand the relationship between indebtedness and sports performance in Brazilian soccer clubs. The economic and financial indicators of 14 soccer clubs between 2020 and 2022, ranked by the Brazilian Football Confederation, were analyzed. Descriptive statistics and the Spearman matrix were used to investigate correlations, seeking to understand how indebtedness affects the positioning and performance of these clubs. The descriptive statistical analysis of the teams showed a disparity, indicating that the correlation between the CBF ranking and indicators such as General Indebtedness and Debt Composition was only significant when clubs without overdrafts were included. This suggests that, for clubs in general, as the position in the ranking increases, indebtedness also tends to increase. In addition, the findings of the research offer a contribution to the sports management of Brazilian soccer clubs, by providing data and conclusions that can guide improvements in the financial situation of these entities.

DOI: https://doi.org/10.56238/sevenVImulti2024-010