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1 econstor Make Your Publcatons Vsble. A Servce of Wrtschaft Centre zbwlebnz-informatonszentrum Economcs Sakınç, İlker Artcle Usng Grey Relatonal Analyss to Determne the Fnancal Performance of Turksh Football Clubs Journal of Economcs Lbrary Suggested Ctaton: Sakınç, İlker (24) : Usng Grey Relatonal Analyss to Determne the Fnancal Performance of Turksh Football Clubs, Journal of Economcs Lbrary, ISSN , KSP Journals, Istanbul, Vol., Iss., pp , Ths Verson s avalable at: Standard-Nutzungsbedngungen: De Dokumente auf EconStor dürfen zu egenen wssenschaftlchen Zwecken und zum Prvatgebrauch gespechert und kopert werden. Se dürfen de Dokumente ncht für öffentlche oder kommerzelle Zwecke vervelfältgen, öffentlch ausstellen, öffentlch zugänglch machen, vertreben oder anderwetg nutzen. Sofern de Verfasser de Dokumente unter Open-Content-Lzenzen (nsbesondere CC-Lzenzen) zur Verfügung gestellt haben sollten, gelten abwechend von desen Nutzungsbedngungen de n der dort genannten Lzenz gewährten Nutzungsrechte. Terms of use: Documents n EconStor may be saved and coped for your personal and scholarly purposes. You are not to copy documents for publc or commercal purposes, to exhbt the documents publcly, to make them publcly avalable on the nternet, or to dstrbute or otherwse use the documents n publc. If the documents have been made avalable under an Open Content Lcence (especally Creatve Commons Lcences), you may exercse further usage rghts as specfed n the ndcated lcence.

2 Journal of Economcs Lbrary Volume December 24 Issue Usng Grey Relatonal Analyss to Determne the Fnancal Performance of Turksh Football Clubs * By İlker SAKINÇ Abstract. Football has become an mportant ndustry n Turkey. A huge amount of sponsorng, advertsng, bettng funds nto football and televson rghts are sold for bllons of Turksh Lras. In order to better compete n Turksh leagues, football clubs have made consderable nvestments and have aspred to be lsted on the stock exchange. The poneer was Beşktaş that went publc n 22. After that three football clubs were lsted on Borsa Istanbul (BIST). The am of ths study s to evaluate the fnancal performance of four bg football clubs (Beşktaş, Fenerbahçe, Galatasaray and Trabzonspor) lsted on BIST from 29-2 to In order to evaluate these clubs, Grey Relatonal Analyss (GRA) s used. GRA s wdely used n varous dscplnes such as economcs, engneerng, socology and fnance. It can be used as a ratng, classfcaton and decson makng technque to determne the mportant factors among those requred for a system wth a lmted number of data set. Keywords. Grey Relatonal Analyss, Fnancal Performance, Turksh Football JEL. G, G4, L83. Introducton The economc mportance of football s ncreasng day by day. In 22, The Englsh Premer League, whch s the most valuable league n Europe, declared new domestc lve broadcastng rghts that are worth over three bllon Euros. Ths value wll be more than fve bllon Euros when t ncludes oversea broadcast rghts n a three year term.. Bundeslga, a German Assocaton football league, announced that the revenue total of the league s two bllon Euros. The revenue of La Lga (Span), Sere A (Italy) and Lgue (France) s.9,.7 and.3 bllon Euros, respectvely (Delotte, 23). The revenue of the world s major clubs s rsng every year. The ncrease n of ther revenues also determnes ther sportng success. At the same tme, the successful football clubs generate more revenue. Ths relatonshp s a close one; hence sportng achevements are ndexed to commercal success. For example, Real Madrd, a Spansh football club, s the rchest and the most valuable club n the world. Accordng to the 24 data, Real Madrd has earned $675 mllon and the value of team has reached $3.444 mllon. The second team, FC Barcelona, also a Spansh football club, has ganed $627 mllon. FC Barcelona s the bggest rval of Real Madrd n sport, and also n economc aspects. The value of the team s * Ths paper was presented n IISES 3th Internatonal Academc Conference, Antbes, France 5-8 September 24 and t s publshed n the proceedngs of the conference. All papers/abstracts have been peer-revewed ISBN: ISSN I confrm that t s not publshed n any journal. Htt Unversty, FEAS, Bankng and Fnance, /449,. lkersaknc@htt.edu.tr

3 Journal of Economcs Lbrary $3.2 mllon. FC Barcelona s followed by, Manchester Unted (England) and Bayern Munch (Germany). The revenue of these clubs s $59 and $56 mllon, respectvely whle the value of the teams are $2.8 and.85 mllon, respectvely. Currently, football teams have captvated corporate clents va sponsorshp, merchandsng and advertsng packages. In Turkey many supporter have pad a subscrpton to Dgturk, a Turksh TV, to watch lve football matches. Sport and fnance are two separate dscplnes. Although the ssues that they deal wth are very dfferent, the perspectve of mult-dscplnary collaboraton between the dscplnes s ncreasng. Sport, whch has become a huge ndustry, assgns sgnfcant responsbltes to the fnance department of sport clubs. Sport clubs establshed as wth an amateur purpose have become professonal commercal enterprses. In the past, the terms budgetng, fnancal management and law consultancy were not consdered mportant. However, nowadays these terms have become very popular n the sport ndustry (Dmtropoulos 2). There are numerous studes on the economcs of professonal football clubs. Most of them have been concerned wth two ssues, the frst of whch s the fnancal assessment of football clubs (Ecer & Boyukaslan 24) (Atmaca 22) (Uluyol 24)(García & Rodríguez 23) (Ascar & Gagnepan 26) (Baroncell & Lago 26) The second ssue s whether or not the results of matches affect the stock prce of these clubs (Kaya & Gülhan 23) (Ashton et al. 23)(Solberg & Gratton 24)(Coates & Humphreys 28) (İnamlık et al. 23) (Devecoğlu & Çoban 23) (Berument et al. 26) (Uludağ & Varan 23) (Özdurak & Ulusoy 23). The am of ths study s to evaluate the fnancal performance of four major football clubs (Beşktaş, Fenerbahçe, Galatasaray and Trabzonspor) lsted on Borsa Istanbul (BIST) from 29/ to 22/3. Grey Relatonal Analyss s used as a method. The rest of the study s organzed as follows: The next secton revews the relevant lterature. Secton III explans the Grey Relatonal Analyss. Secton IV descrbes data, varable and methodology. Secton V presents the mplementaton. Secton VI shows the results and Secton VI offers conclusons. 2. Lterature Revew The fnance lterature s rch wth studes nvestgatng numerous nterrelatonshps between sports and fnance. Ecer and Boyukaslan (24) revealed that Fenerbahce has the most successful performance among the four major football clubs of Turkey by usng GRA between perods. The reason for the successful performance s the fact that t s hgh lqudty and proftablty, and low lablty ratos. Accordng to the results, the second best performance s Trabzonspor. Beşktaş takes the thrd place and Galatasaray s the last. Atmaca (22) evaluated the fnancal performance of four football clubs lsted on Istanbul Stock Exchange (ISE) by usng Topss method. The results ndcate that between 23-2 perods Fenerbahçe has the hghest performance among ts rvals. Ascar and Gagnepan (26) have analyzed the frst and second football league of Span. They revealed that there are some weaknesses n ths league. For example ther TV revenues have not been ncreasng, the deprecaton rate reduces the proftablty of the clubs and n the balance sheet there has been an mbalance between assets and labltes. All of these have overwhelmed the ablty of makng proft of Spansh teams. As a result, the Spansh football clubs are not makng good mprovement n nternal operatons, effcency, and fnancal management. JEL, (), İ. Sakınç. p

4 Journal of Economcs Lbrary Buramo et al. (26) have analyzed the fnancal performance of Englsh football clubs. In recent years, the number of Englsh clubs whch are n trouble wth fnancal problems s ncreasng. The reason for fnancal problem s nsuffcent revenues, hgh transfer fees and bad sportng performance. Barros (26) has stated that smlar reasons exst n Portugal Football League. Accordng to hs study, the reasons for the fnancal nstablty of Portuguese football clubs are napproprate government polcy, the club s small sze and poor management. Frck and Prnz (26) have surveyed the fnancal data of German football league and compared wth other European leagues. The total amount of labltes of German clubs s half of the all Italan and Englsh club s labltes. The supporter and the sponsorshp revenues are ncreasng among the other leagues. Dmtropoulos (29) have nvestgated the Greek football clubs fnancal data between perods. Accordng to ths study, the labltes of Greek clubs are hgh, the return of assets and equtes are negatve. A number of papers have questoned whether football results have a suffcently bg mpact on mood to justfy a reacton of prces. These studes have tred to demonstrate whether there s a lnk between mood and stock returns on the bass of team performance. Edmans et al. (27) have nvestgated the stock market reacton after the nternatonal football results. They have found a sgnfcant market declne after losses. Ths loss effect s stronger n small sze stocks. In addton, the football matches whch are mportant affect the stock prces more than ordnary matches. Berument et al. (26) have analyzed the effect of football success on stock market returns n Turkey. They have found that Beşktas s vctory aganst foregn compettors n wnner s cup ncrease stock market returns. However, the success of other two bg football clubs, Galatasaray and Fenerbahce does not affect the stock market returns. Renneboog and Vanbrabant (2) have nvestgated the share prce of soccer clubs lsted on the London Stock Exchange and the Alternatve nvestment Market at the frst day of tradng after a game. They have revealed that the share prces of clubs are nfluenced by the soccer teams weekly sport performance. Postve abnormal returns almost % were realzed expected followng a soccer vctory. On the other hand, defeats or draws are punshed, respectvely, by negatve abnormal returns of.4% and.6%. Uludağ and Varan (23) also have found smlar results. Accordng to ther study, defeats and draws sgnfcantly affect the market value of four bg football clubs whch are lsted on Borsa Istanbul. They clam that the nvestors reactons to defeats are negatve and stronger than those to draws. They conclude that the nvestors are not ratonale. Ther emotons determne the buy and sell decsons. In contrast to the studes whch were mentoned above, Zuber et al. (25) argues that soccer team nvestors do not respond the nformaton that s expected to have a measurable mpact on fnancal stuaton and shareholder wealth. 3. Grey Relatonal Analyss (GRA) GRA s wdely used n varous dscplnes such as economcs, engneerng, socology and fnance. It can be used as a ratng, classfcaton and decson makng technque to determne the mportant factors among those requred for a system wth a lmted amount of data set. The process of Grey Relatonal Analyss (GRA) s detaled here. Let the number of lsted football clubs be m, and the number of nfluence factors be n. Then a m x n value matrx whch s called egenvalue s set up. JEL, (), İ. Sakınç. p

5 X = x (), x (2),... x( n) x2(), x2(2),... x2( n) xm(), xm(2),... xm( n) Journal of Economcs Lbrary () where x (k) s the value of the number lsted football clubs and the number k nfluence factors. Before calculatng the Grey Relaton coeffcents, the data seres can be treated based on the followng three knds of stuatons and the lnearty of data normalzaton to avod dstortng the normalzed data. They are:. Beneft type factor (the bgger the better), If a hgh crtera value s an approprate result from the operaton of normalzaton, the formula x mn x x (2) max x mn x s used. 2. Defect type (the smaller the better) If a low crtera value s an approprate result from the operaton of normalzaton, the formula maxx x x (3) maxx mnx s used 3. Medum type, or nomnal-the-best (the nearer to a certan standard value the better). A thrd stuaton would be an average value beng an approprate result from the operaton of normalzaton, the formula x x( k) x (4) max x x s used. where x o (k) s the objectve value of entty k. The grey relaton degree can be calculated by the followng steps: a) The absolute dfference of the compared seres and the referental seres should be obtaned by usng the followng formula: x x( k) x (5) and the maxmum and the mnmum dfference should be found. b) The dstngushng coeffcent p s between and. Generally, the dstngushng coeffcent p s set to.5. c) Calculaton of the relatonal coeffcent and relatonal degree by the followng: JEL, (), İ. Sakınç. p

6 Journal of Economcs Lbrary In Grey Relatonal Analyss, Grey relatonal coeffcent can be expressed as follows: mn p max ( k) (6) x p max and then the relatonal degree follows as: w ( k r ) (7) s the Grey relatonal coeffcent, w (k) s the proporton of the number k nfluence factor to the total nfluence ndcators. The sum of w (k) s %. 4. Data, Varables and Methodolgy The am of ths study s to evaluate and compare the fnancal performance of four major football clubs lsted on Borsa Istanbul from the years 29/ to 22/3. The data has been acqured from fnnet s web page ( For evaluaton of football clubs ffteen fnancal ratos have been used. The fnancal ratos used n Grey Relatonal Analyss (GRA) are shown n table. Table : The Fnancal Ratos Used n GRA Fnancal Indıcators Formulaton Code Am Proftablty Return on Asset PR Max Net Income/Total Assets Cost Margn PR2 Mn Costs of Goods Sold/Sales Proft Margn PR3 Max Net Income/Sales Growth Net Income Growth GR Max (CY Net Income - PY Net Income) / PY Net Income Net Sale Growth GR2 Max (CY Net Sale PY Net Sale) / PY Net Sale Asset Growth GR3 Max (CY Total Asset PY Total Asset) / PY Total Asset Labltes Growth GR4 Mn (CY Current Labltes PY Current Labltes) / PY Current Labltes Valuaton P/S Rato VR Max Prce/Sale Earnngs Per Share (EPS) VR2 Max Net Income/Number of Shares Operatng Accounts Recevable Rato OR Max Performance (Accounts Recevable)/ ((Sales/365)) Asset Turnover Rato OR2 Max (Current Assets)/((Sales/365)) Debt Debt Coverage Rato DR Max Net Operatng Income / Current Labltes Debt Rato DR2 Mn Total Debt / Total Assets Lqudty Current Rato LR Max Current Assets / Current Labltes Quck Rato (Current Assets Inventory) / Current Labltes LR2 Max CY=Current Year PY= Present Year JEL, (), İ. Sakınç. p

7 Journal of Economcs Lbrary In ths study, three proftablty, four growth, two valuaton, two operatng performance, two debt and two lqudty fnancal ratos are used as fnancal ndcators. Proftablty ndcators are essental ndcators of how managers manage the frm effectvely and effcently. Addtonally these ratos are commonly used n comparson wth other companes. In ths study, the Return on Asset, Cost Margn and Net Proft Margn proftablty ratos are used. The Return on Assets rato ndcates how much proft the company obtaned from ts assets. The Cost Margn rato ndcates the percentage of cost n the sales. The hgher the cost margn rato, the less proftablty for companes. The net proft margn measures proftablty after consderaton of all expenses ncludng taxes, nterest, and deprecaton. Return on Asset and Net Proft Margn ratos are consdered to be hgh, on the other hand the Cost Margn Rato s consdered to be low. Growth ndcators, or growth rates, tell the analyst just how quckly a company s growng. In ths study, ncome, sale, total asset and current labltes growth ratos are used. These ratos are normally stated n terms of a percentage growth from the pror year. It s mportant to see the growth ratos as hgh as possble except for current labltes growth rato. If ths rato s low, t means the company does not have to pay too much nterest. A valuaton ndcator s a measure of how cheap or expensve a common stock (or busness) s, compared to some measure of proft or value. Valuaton ratos help us fgure out how the current stock prce of the company compares to ts performance. In ths study, Prce/Sales (P/S) and Earnngs Per Share (EPS) are used as valuaton ratos. EPS shows company's proft dvded by the number of shares outstandng. The P/S rato ndcates the qualty of the company s earnngs. The P/S rato s the value placed on each dollar of a company s sales or revenues. In other words, t can be formulated by dvdng the market captalzaton of the company by ts total sales n one year perod. A hgh EPS rato creates a hgh amount of dvdend expectatons from the shareholders. If the dvdend s not to be dstrbuted to shareholders, t means that t wll be used n the company's nvestment. Ths gves the company an opportunty for growth. Operatng Performance Indcators show how company assets are used effcently. How fast the company assets turns cash, so means used effectvely. In ths study Accounts Recevable Rato and Asset Turnover Rato are used. Accounts Recevable Rato shows how many tmes a company can collect ts accounts recevable durng an accountng perod. A hgh rato s desred. The asset turnover rato shows how well a frm utlzes ts assets to produce revenue. A hgh rato s desred here. Ths rato consders all assets, current and fxed. Debt ndcators show the percentage of assets fnanced wth debt. Debt ratos are the ndcators of the level of fnancal rsk of the company. If the percentage of the frms' assets that are fnanced by debt s too hgh, the rsk of bankruptcy wll ncrease. In ths study, debt coverage and debt ratos are used. Debt coverage rato shows the cash poston of the frm to meet prncpal, nterest and lease payments. The hgh rato ncreases the possbltes of fndng debt. Debt rato s the rato of the company s total debt to ts total assets. In other words, the debt rato ndcates a frm's ablty to pay off ts labltes wth ts total assets. The hgh level of ths rato s consdered more rsky for lenders. Lqudty ndcators show the payment capacty of the company s short-term labltes va ts current assets. In general, the rsk of bankruptcy of the company s low when these ratos are hgh. In other words, when the lqudty ratos are hgher than one t means that the current assets of frm wll cover ts short term labltes wthout any extra assets. In ths study, current and quck ratos are used as lqudty ratos. Current rato s the rato of current assets to current labltes of the JEL, (), İ. Sakınç. p

8 Journal of Economcs Lbrary company. Quck rato makes a more senstve measurement compared wth the current rato. Quck rato s the rato of the most lqud assets (near cash or quck assets) to current labltes. Only near cash or quck assets are ncluded. TABLE 2: Fnancal Ratos of Football Clubs FC Proftablty Growth Valuaton Operaton Debt Lqudty PR PR2 PR3 GR GR2 GR3 GR4 VR VR2 OR OR2 DR DR2 LR LR2 BJKAS FENER GSRAY TSPOR PR: From ts assets, only Fenerbahçe s assets are generatng proft. Other clubs are not. PR2: Beşktaş s cost of goods s bgger than ts sales. Ths means t s not earnng enough money. Fenerbahçe s cost s about 65%. PR3: After all expenses and taxes are pad, Fenerbahçe s net ncome percentage s 3%. However, Beşktaş and Galatasaray exceed ther ncome or total revenue generated for a gven perod. GR: All football club s net ncome growth s negatve. They have not generated a proft for n a four year average perod. GR2: The sale growth of four major clubs s postve. However t does not mnmze the loss entrely. GR3: Galatasaray s asset growth s hgher than the other three clubs. However, Beşktaş s asset growth s negatve. GR4: Fenerbahçe s current labltes growth s notably hgher than the others. Fenerbahçe has to pay much more nterest. For Fenerbahçe, ths s alarmng. VR: Fenerbahçe s P/S rato s greater than others. It ndcates that share prce has ncreased much more than others. VR2: Galatasaray s and Beşktaş s expenses are more than the revenue each company brought n. As a result of ths stuaton, the EPS of these two clubs s negatve. Fenerbahçe s and Trabzonspor s EPS s postve; however, t s too low. OR: The hgher Accounts Recevable rato of Fenerbahçe reflects a short lapse of tme between sales and the collecton of cash. It s about three tmes more than the others. A low accounts recevable rato mples that Galatasaray, Trabzon and Beşktaş should reasses ther credt polces n order to ensure the tmely collecton of credt sales. OR2: Beşktaş and Trabzonspor generate approxmately four Turksh Lras for every one Turksh Lra of assets. However, others generate about.8 Turksh Lras. Ther lower ratos mean that these clubs are not usng ther assets effcently and most lkely have management or producton problems. DR: The debt coverage rato of Beşktaş, Galatasaray and Trabzonspor s less than. If a debt coverage rato s less than, t means a negatve cash flow. JEL, (), İ. Sakınç. p

9 Journal of Economcs Lbrary Addtonally a low debt coverage rato ndcates that there s not enough net operatng ncome to cover annual debt payments. Fenerbahçe s debt coverage rato s about 2. Ths fgure means that Fenerbahçe s assets are generatng enough ncome to pay ts debt oblgatons. DR2: Beşktaş and Galatasaray s debt rato s greater than. Ths ndcates that these clubs have more debt than assets. In other words, t means hgher rsk n operaton snce the busness would fnd t dffcult to obtan loans for new projects. Fenerbahçe s debt rato s 68%. It shows that 68% of the company s assets s fnanced through debts. LR: Among the clubs, only Fenerbahçe has the ablty to pay ts short term labltes wth ts current assets. Galatasaray, Beştaş and Tabzonspor s net workng captal s negatve. Currently, all ther ratos are less than.ths ndcates the lqudty weakness of three clubs. LR2: As same as current rato only Fenerbahçe meets ts short term labltes usng ts lqud assets. However, Beşktaş s cash power s the worst. 5. Implementaton The frst step of GRA s to form a comparson matrx. Table 3 shows the comparson matrx of four football clubs fnancal ratos whch have been formed from the table 2. In ths matrx, there has to be a reference seres (RF) row. If the am s maxmum value, the largest value n column wll be the reference number. On the other hand, f the am s mnmum value, the smallest value wll be the reference number. TABLE 3: Comparson Matrx FC Proftablty Growth Valuaton Operaton Debt Lqudty PR PR2 PR3 GR GR2 GR3 GR4 VR VR2 OR OR2 DR DR2 LR LR2 RF BJKAS FENER GSRAY TSPOR The second step of GRA s to form a normalze matrx. Table 4 shows the normalze matrx. In order to form normalze matrx, we have to need Eq (2) and Eq (3). The am determnes the Eq. If the am s maxmum (the bgger the better), we should use Eq (2). If the am s mnmum (the smaller the better), we should use Eq (3). After the calculaton, table 4 the normalzed matrx has been formed. JEL, (), İ. Sakınç. p

10 TABLE 4: Normalzed Matrx Journal of Economcs Lbrary FC Proftablty Growth Valuaton Operaton Debt Lqudty PR PR2 PR3 GR GR2 GR3 GR4 VR VR2 OR OR2 DR DR2 LR LR2 RF BJKAS FENER GSRAY TSPOR The fourth step of GRA s to form an absolute values table. Ths table s formed by usng Eq (5). In other words, normalzed values are subtracted from reference values. TABLE 5: Absolute Values Table FC Proftablty Growth Valuaton Operaton Debt Lqudty PR PR2 PR3 GR GR2 GR3 GR4 VR VR2 OR OR2 DR DR2 LR LR2 BJKAS FENER GSRAY TSPOR The ffth step of GRA s to form the Grey Relatonal Analyss Coeffcent matrx. Table 6 s constructed by usng Eq (6). In the Eq (7) the value,5 s used as a grey relatonal coeffcent. It s a common use n fnancal researches. JEL, (), İ. Sakınç. p

11 TSPOR GSRAY FENER BJKAS Journal of Economcs Lbrary TABLE 6: Grey Relatonal Coeffcent Matrx Table FC Proftablty Growth Valuaton Operaton Debt Lqudty PR PR2 PR3 GR GR2 GR3 GR4 VR VR2 OR OR2 DR DR2 LR LR2 BJKAS FENER GSRAY TSPOR The last step of GRA s to ndcate the grey relatonal grades of football clubs. For calculaton of these ranks and grades Eq (7) s used. TABLE 7: Grey Relatonal Coeffcent Matrx Assessment Table F C Proftabl ty Growth Valuaton Operaton Debt Lqudty Relaton Grade Ra nk Relaton Grade Ra nk Relaton Grade Ra nk Relaton Grade Ra nk Relaton Grade Ra nk Relaton Grade Ra nk 3.3% % 3 2.8% 4 6% 3 3% 4 3% 4 % 27.9% 4 % 5. 7% % % 57.% 3 8.5% 2.% 3 2% 4 35% % 3 73,5% % 2 6.5% 2 68% % % 2 TABLE 8: General Results of Grey Relatonal Analyss General FC Relaton Grade Rank BJKAS 9.66% 4 FENER 74.34% GSRAY 45.64% 3 TSPOR 6.9% 2 6. Fndngs Accordng to GRA results, the rank shows that Fenerbahçe s at top of the lst, Trabzonspor s second, Galatasaray s thrd and Beşktaş s at the bottom. Except for Growth ndcator, n all fnancal ndcators Fenerbahçe takes frst place. JEL, (), İ. Sakınç. p

12 Journal of Economcs Lbrary Trabzonspor s rank does not change. In all ndcators t mantans ts rank. It s the second team that shows good performance. Beşktaş s fnancal performance s the worst among the four clubs. Accordng to four ndcators, Beşktaş s at the bottom of lst. In the remanng two ndcators, ts rank s thrd. Galatasaray s ranked frst only n growth ndcator. In general t shares the last ranks wth Beşktaş. Ths means the fnancal performance of Galatasaray s poor. These fndngs are consstent wth Ecer and Boyukaslan (24) study. In ths study they found that Fenerbahçe was ranked frst, and Trabzonspor second. My fndngs show these same rankngs. However, the trd and fourth ranks dffer. Ecer and Boyukaslan (24) revealed that the rank of Beşktaş s ranked thrd and Galatasaray s fourth accordng to ther GRA. Atmaca (22) also revealed that the fnancal performance of Fenerbahçe s better than the other three. In Atmaca's (22) study, he used TOPSIS method to rank the four major football clubs n Turkey. 7. Concluson In Turkey football s a very popular sport. There are numerous football clubs, however the four major clubs, Beşktaş, Fenerbahçe, Galatasaray and Trabzonspor, are the largest and most supported of all. Only these clubs are lsted and traded on Borsa Istanbul. The fnancal value of these clubs s determned n ths stock exchange. The rsng share prce of these clubs ncreases the market value. On the other hand, the downward movement decreases the value of club. The reason of ncreasng value s sportng success: thanks to sportng success, football clubs may generate more revenue. For example, Real Madrd, Barcelona and Manchester Unted have acheved success and have generated revenue. Sportng success and fnancal success are nter-connected and hghly correlated. Accordng to Grey Relatonal Analyss, Fenerbahçe s at the top of the rankngs and Beşktaş s at the bottom. The analyss made among the four clubs s not able to draw enough attenton to the huge gulf whch exsts between them. In my opnon, the normal performance of Fenerbahçe appears as a good performance among others poor performance. In fact, the most mportant ssue from the analyss s the worst performance of Beşktaş. Dependng on fnancal ratos, the stuaton of Beşktaş worsens. For Beşktaş t wll be dffcult to survve n professonal football n Turkey, as t had to change ts balance sheet composton to survve. Galatasaray also suffers from management of ts fnancal performance. In ts accounts there s some structural weakness. In both clubs balance sheets there s equlbrum between assets and labltes. There s a huge dsparty. Beşktaş and Galatasaray are hghly leveraged. Moreover, they have trouble wth severe losses and negatve returns on assets and equtes. All these facts may lead these clubs to have ntense fnancal troubles n the future. The negatve fnancal results affect the sportng performance of Beşktaş adversely. Hence, these clubs cannot maxmze ther sportng performance wthout takng nto account the fnancal performance. References Ascar, G. & Gagnepan, P. (26). Spansh football. Journal of Sports Economcs, 7(), Ashton, J.K., Gerrard, B. & Hudson, R. (23). Economc mpact of natonal sportng success: evdence from the London stock exchange. Appled Economcs Letters, (2), Atmaca, M., (22). İMKB de şlem gören spor şrketlernn TOPSIS yönetm le fnansal performans değerlendrmes. Iktsat Isletme ve Fnans, 27(32), 9 8. JEL, (), İ. Sakınç. p

13 Journal of Economcs Lbrary Baroncell, A. & Lago, U. (26). Italan football. Journal of Sports Economcs, 7(), Barros, C.P. (26). Portuguese football. Journal of sports economcs, 7(), Berument, H., Ceylan, N.B. & Gozpnar, E. (26). Performance of soccer on the stock market: Evdence from Turkey. The Socal Scence Journal, 43(4), Buramo, B., Smmons, R. & Szymansk, S. (26). Englsh football. Journal of Sports Economcs, 7(), Coates, D. & Humphreys, B.R. (28). The Effect of On-Feld Success on Stock Prces: Evdence From Nppon Professonal Baseball. Internatonal Assocaton of Sports Economsts, 5 8. Delotte, (23). Captans of ndustry Football Money League, Report. Devecoğlu, S. & Çoban, B. (23). Türkye de Spor Kulüplernn Halka Arzı. Standart Ekonomk ve Teknk Derg,. Dmtropoulos, P., (29). Analyzng the proftablty of the Greek football clubs: Implcatons for fnancal decson makng. Busness Intellgence Journal, 2(), Dmtropoulos, P. (2). The Fnancal Performance of the Greek Football Clubs. Sport Management Internatonal Journal, 6(). Ecer, F. & Boyukaslan, A., (24). Measurng Performances of Football Clubs Usng Fnancal Ratos: The Gray Relatonal Analyss Approach. Amercan Journal of Economcs, 4(), Edmans, A., Garca, D. & Norl, Ø. (27). Sports sentment and stock returns. The Journal of Fnance, 62(4), Frck, B. & Prnz, J. (26). Crss? What crss? football n Germany. Journal of Sports Economcs, 7(), García, J. & Rodríguez, P. (23). From sports clubs to stock companes: The fnancal structure of football n Span, European Sport Management Quarterly, 3(4), İnamlık, A., Yücel, E.M. & Berument, H., (23). Futbolun Vermllk Üzerne Etks. Iktsat Isletme ve Fnans, 8(23), Kaya, A. & Gülhan, Ü. (23). Spor Kulüpler Performanslarının Hsse Sened Fyatlarına Etks: BIST de Br Uygulama. Yönetm ve Ekonom, 2(2), 2. Özdurak, C. & Ulusoy, V. (23). Moneyball n the Turksh Football League: A Stock Behavor Analyss of Galatasaray and Fenerbahce Based on Informaton Salence. Journal of Appled Fnance & Bankng, 3(4), 2. Renneboog, L. & Vanbrabant, P., (2). Share prce reactons to sporty performances of soccer clubs lsted on the London Stock Exchange and the AIM, Tlburg Unversty. Solberg, H.A. & Gratton, C. (24). Would European soccer clubs beneft from playng n a Super League? Soccer & Socety, 5(), 6 8. Uludağ, B.K. & Varan, S. (23). Futbol Maç Sonuçlarının 4 Büyüklern Hsse Sened Getrlerne Etks. In 7.Fnans Sempozyumu. Muğla. Uluyol, O., (24). Süper Lg Futbol Kulüplernn Fnansal Performans Analz. Journal of Yasar Unversty, 9(34), Zuber, R.A. et al. (25). Investor fans? An examnaton of the performance of publcly traded Englsh Premer League teams. Appled Fnancal Economcs, 5(5), pp Copyrghts Copyrght for ths artcle s retaned by the author(s), wth frst publcaton rghts granted to the journal. Ths s an open-access artcle dstrbuted under the terms and condtons of the Creatve Commons Attrbuton lcense ( JEL, (), İ. Sakınç. p