The market for corporate control in professional football: is there an agency problem?



This paper identifies the nature of agency problems in professional football in the UK. Conflicting elements within director-owners’objective functions combined with highly concentrated ownership rights are sources of agency problems, manifest by the poor financial performance of many clubs. Arguably, a club's supporters influence its output implying that supporters may be considered as an input.

Given this, theory suggests that efficiency may be enhanced if supporters possess more property rights in their respective clubs.