Measurement of the relationship between financial manipulation tendencies of sport clubs and financial fair play rules with Beneish model

For centuries, football has been regarded as a means of entertainment. With the industrial revolution has entered a phase of change / development. The effects of notions like globalization, corporatization and international competition also has been reflected in football. With this effect, football has started to be played on a more professional basis and gained a commercial and institutional aspect. This has led to the establishment of continental and national federations and the transformation of clubs into association status and then to company status. Union of European Football Associations (UEFA), as the governing body of European football, has issued certain obligations to discipline football with Financial Fair Play regulations. The financial regulation of football is also a part of this situation; therefore some financial rules was announced to be implemented from 2013 onwards. As of this year, the financial statements submitted by the clubs or companies included in the super league must be presented in accordance with these regulations. As a result of the frequent financial scandals after the 1950s, the possibility of financial manipulation has been a factor to be considered in the planning and implementation of audit activities. There are many models for determining the possibility of manipulation in financial information, which is very important for information users. Beneish model is the most well known and used method. In this study, the effect of UEFA's Financial Fair Play rules on the manipulation tendencies of Turkish sports clubs traded on the stock market was investigated using the Beneish model.