A comparison of the management accounting techniques adhered to by local football clubs with similar UK clubs

Abstract

This dissertation provides an evaluation of what management accounting techniques are applied by local football clubs in comparison to those utilised by similar UK clubs. The key research objective is to identify whether the individuals responsible for club finances are using proper management accounting systems and whether they are carried out professionally, notwithstanding the fact that the majority of local clubs are non-profit making organisations. A local survey consisting of a census study was conducted amongst the ten football clubs participating in the Maltese Premier League. Structured questionnaires were used as the main research tool for the purpose of collecting data together with personal interviews with the individual responsible for the club finances. A UK survey was conducted via electronic mail amongst a randomly selected sample of UK clubs. The questionnaire used for local clubs was also used for the UK survey in order to be able to compare both sets of clubs. This study concludes that in some instances Maltese clubs are ahead of UK clubs in applying certain management accounting techniques like budgeting and labour efficiency. On the other hand UK clubs are ahead of Maltese clubs in applying other techniques such as certain variance analysis. This occurs although the majority of Maltese clubs are nonprofit-making organisations in comparison to UK clubs being mainly Private Limited Companies. As a result, it is recommended that Maltese clubs further enhance the management accounting techniques currently being used in order to better plan and control the management of these sport institutions. It is also suggested that the Malta Football Association should formalise the introduction of a uniform management accounting system, in the same manner as it has already done in the case of financial accounting.