Sports finance governance and its impact on the financial sustainability of professional clubs

A comparative analytical model between elite and mid-level clubs in the Saudi and Spanish leagues

Abstract

 This study investigated the determinants of fiscal sustainability and its correlation with funding mechanisms within professional sports environments. Utilizing an analytical methodology, the research conducted a comparative assessment of four models with varying degrees of financial solvency: Al-Hilal, Al-Wehda, Real Madrid, and Sevilla. The study employed a descriptive-analytical approach, extrapolating data from official documents, financial statements, and published statistical indicators to deconstruct fundamental variances in resource allocation efficiency and levels of fiscal discipline. The selected case studies were determined based on a multi-criteria matrix, including revenue structure, operating expense ratios, and credit obligations. The findings indicate that financial abundance alone does not guarantee long-term viability; rather, success is contingent upon the governance of financial management and the ability to equilibrate expenditures with actual cash flows. The results further demonstrated that clubs with significant financial leverage achieve higher sustainability when integrating investment diversification with rigorous oversight. Conversely, clubs with limited resources remained vulnerable to economic shocks resulting from a reliance on unsustainable funding sources.