Academics have studied the finances of football clubs, but not the financial situation of professional football players. To fill this gap in literature, the purpose of this paper is to analyse the financial situation of individual players, the causes of financial problems and the probability of encountering financial difficulties.
A survey has been conducted of 102 players of five clubs in the Belgian first division. Based on this unique data set, a multivariate nominal logistic regression model allows the causes of financial difficulties to be identified. A derived classification model is estimated in order to predict the probability of professional players encountering financial problems.
About one out of four professional players is confronted with occasional financial problems. Next to the use and investment of income; personal, family and career status factors have a peculiar impact on the individual financial situation of professional sports players.
The results allow better identification of professional players likely to incur financial problems and better assisting them avoid problems.
Given the gap in the sports management literature, the findings from the econometric approach provide both researchers and practitioners with new insights into financial management issues of athletes. The findings may help athletes, their managers and club managers in their decision making. Future research can further build on these findings.
