The Impact of Multi-Club Ownership on Football Transfers and Performance: Insights from Internalisation and Business Group Theories

Abstract

This thesis applies ideas from internalisation and business group theories to examine how multi-club ownership (MCO) affects football transfers and player performance. The study thoroughly examines player performance and transfer activity between clubs in Europe's Big 5 leagues that are part of MCO systems. Using data from five seasons before the acquisitions and every season afterwards until 2023–2024, the study looks at the financial synergies and strategic benefits offered by MCO arrangements. Key findings show that although MCOs can profit from cost-saving structures and network effects, the performance results of the players were conflicting. To provide a thorough examination, the study makes use of web-scraped data from the FIFA video game series and Transfermarkt.com. To assess transfer trends and player performance measures, techniques such as propensity score matching and outlier identification are utilised. The findings illustrate the complexity and strategic management needed for effective multi-club ownership, providing significant theoretical and practical implications for stakeholders in the football business