A Freekick Against Stock Exchange: How Football And IPO Interacts
- IJLLR Journal
- Jan 27
- 1 min read
Aditya Singh, B.A., LL.B. (Hons.), National Law University, Jodhpur
Deepanshu Verma, B.A., LL.B. (Hons.), National Law University, Jodhpur
ABSTRACT
This article examines the intersection of corporate governance and the financial dynamics of football clubs entering public stock markets through Initial Public Offerings (IPOs). While IPOs provide clubs with much-needed capital to enhance infrastructure and recruit top-tier players, they also present significant challenges. These include increased accountability, intensified stakeholder scrutiny, and financial instability closely tied to on-field performance. Using European football clubs as examples, the article investigates the governance models that arise after an IPO, the risks of stock under-pricing and underperformance, and the misalignment between shareholder expectations and club profitability. The findings highlight that public listings, although fostering transparency and improved governance, also amplify financial vulnerabilities due to the inherently unpredictable nature of football. The analysis concludes that listing football clubs on stock exchanges is a high-stakes strategy requiring robust governance mechanisms and prudent investor judgment.
Keywords: Corporate Governance, Football IPOs, Publicly Traded Football Clubs, Stakeholder Accountability, Financial Volatility, Stock Market Performance, Initial Public Offering, European Football Clubs, Governance Challenges, Shareholder Interests.
