Determinants of the financing of first division soccer clubs in Burkina Faso from 2015 to 2022

Abstract

The implementation of sports policy, in particular that of soccer, involves the State and the sports movement. The State interferes in the implementation of soccer activities through financial and technical support. In addition to this, models of funding the clubs' budget is set by the soccer actors. Soccer has now become a real industry that creates many opportunities for the players. In developing countries, soccer lacks an adequate model for its funding. Therefore, determining the funding channels of soccer that can contribute to the financial empowerment of soccer clubs remains an essential requirement for the development of a professional sport. This article aims at analysing the factors that explain the funding of first division soccer clubs in Burkina Faso from 2015 to 2022. Data were collected from sports structures.  The fixed-effects ordinary least squares (OLS) method is applied for that.

 The empirical results reveal that variables such as subsidy, sponsorship revenue, competition revenue of the Burkina Faso Football Federation (FBF) and player transfer revenue were found to be positive and significant to the level of 1%. An increase in subsidy, sponsorship revenue, FBF competition revenue, and player transfer revenue increase club budgets by 1.21 points, 0.92 points, 1.93 points, and 0.79 points, respectively, at the 1% threshold.