Resumo

In Brazil, football is considered an influential component in Brazilian society, related to the country's cultural and traditional roots. With the process of professionalization of football, clubs began to seek a balance between success within the four lines and stable financial health. The structure of football facilitates obtaining private benefits and corruption cases. To encourage clubs to promote more transparent, with financial balance, the Brazilian government created the Management Modernization Program and the Fiscal Responsibility of Football – PROFUT

Empirical evidence regarding the effects of joining PROFUT on the financial management of clubs is not conclusive (Andrade Júnior et al. 2019). The research question of this study is the impact of adherence to PROFIT on the financial and sporting results of soccer clubs in Brazil? The purpose of this study is to identify the impact of PROFUT membership on the financial and sports performance of soccer clubs in Brazil

Governance in football clubs is a recent topic in Brazil, little explored in the empirical literature (Andrade Júnior et al. 2019), and which has been gaining more attention, especially in relation to the analysis of financial management and sports of football clubs. Regarding adherence to PROFUT, studies such as Umbelino et al. (2019) suggest that adherence to PROFUT was not able to improve the levels of disclosure of information. For Andrade Júnior et al. (2019) clubs that joined PROFUT would have higher levels of indebtedness compared to those that did not

To identify the impact of PROFUT on the financial and sports performance of Brazilian clubs, we developed a descriptive research based on quantitative methods. We applied the Differences-in-Differences estimator (DID) through the Kernel Propensity Score Matching (K-PSM), in which, through a set of covariates, a club from the group of control that is like the treatment group. In addition to the K-PSM estimation, regressions were estimated using the Feasible Generalized Least Squares Method (GLS) and Probit models to identify the effect of a set of variables on financial and sports performance

Regarding the financial performance, the results suggest that the adhesion to PROFUT increased the total revenue of the clubs and the specialization of the earnings structure. On the other hand, it does not seem to have an impact on indebtedness, disappointing expectations regarding the face of reckless management in clubs. Adherence to the program reduced the club’s sporting performance, suggesting that managers have not yet managed to balance the club’s financial health and on-field results

The results suggest that joining PROFUT increased the clubs' total revenue levels, while making the revenue structure more concentrated. These findings suggest that the financial performance of clubs that joined PROFUT is driven by the increase in their revenues, which allows us not to reject hypothesis 1. The results indicate that PROFUT had a negative impact on the sporting performance of Brazilian clubs. These findings suggest the rejection of hypothesis 2 of this study and indicate that adherence to PROFUT alone is not enough to achieve a balance between success in the field and in finance

Andrade Júnior, D. L. I., Ferreira, H. L. & Piva, T. A. (2019). Influence of sports performance and adherence to PROFUT on the level of indebtedness of soccer clubs in Brazil. XIX USP International Conference in Accounting, São Paulo, SP, Brazil. Umbelino, W. L., Ponte, V. M. R., Silva, R. B. & Lima, M. C. (2019). Disclosure in football clubs: study on the reflexes of the PROFUT law. Revista Evidenciação Contábil & Finanças, 7(1), 112-132. https://doi.org/10.22478/ufpb.2318-1001.2019v7n1.38074