The institutional framework of financial fair play criterias, its effect on football and the application of the break-even rule calculation on footbal clubs

ABSTRACT The purpose of this thesis is to indicate the importance, the purpose, the criteria, the sanctions and the effect of the Financial Fair Play on football with regards to football clubs. Football has developed rapidly in Europe and has entered a period of commercializationsignificantly. The "Break-Even Rules" which is the most important UEFA Financial Fair Play criteriafor football clubs to continue without financial problemsis discussed. Break-Even Rules‟ importance is stressed and four major football clubs‟ break-evensare calculated. In the first chapter, the historical process, the legislation, the economic structure, the public listing, the performance of shares, and the UEFA criteria of football in Turkeyare elaborated. In the second chapter, FFP's conceptual framework, its aim, its criteria, its effect on football, the sanctions and consequences as a result of violations and break-even rules are explained. In the third chapter, the books and documents that are keptby football clubs are mentioned by explaining the accounting policies of football clubs. Then, the importance of financial reporting is discussed and its application on FFP criteria are emphasized. In the last chapter, the break-even ruleson four major football clubs are applied. Keywords: Football, Sports Clubs, UEFA Financial Fair Play Criteria, Break-Even Rules