Tenth International Conference on Sport & Society

Abstract

The purpose of this study is to analyze the financing process of professional footballers’ career path using the pecking order theory (POT). POT states that there is no target capital structure and that firms finance their activities in a certain order: first internal sources, debt and equity (that brings external ownership and claims) financing. We relate the financing of professional footballers’ career project abroad to that of the firm. Considering the poor backgrounds of most players before reaching professional status, they rely on their own meagre savings, then family and friends support and then external sources. Intermediaries (promoters) like agents and sports agencies accept the challenge to secure a professional contract for the trainees. It shows how resources are mobilised and invested into the development of professional footballers. We compare two categories of players in their professional career path: those who passed through the academy route and those who did not. We investigate into the turn-around time (speed) in acquiring these funds, convenience and costs of these sources of finance. We relied primarily on qualitative data and secondary documents to provide insights into the financing of professional career project of African players. We can conclude that the players’ internal resources are insufficient thus compelling them to fall on external sources from local managers, scouts, and the various football structures. The paper has implications for understanding and resolving conflicts between professional players and claimants emanating from moral hazards in these relationships. A grey area in sports finance is opened for further research.