Intellectual Capital and Financial Performance of English Football Club

Abstract

This study test the components of IC effect and IC itself as a whole towards Return on Assets as a measure of performance of football clubs in the UK. The samples of this study are 42 football clubs and generated as many as 126 data. Hypothesis testing results showed that intellectual capital components (human capital, structural capital, and capital employed) simultaneously affects financial performance. While, human capital has a positive effect on ROA, structural capital has a negative effect on ROA, and capital employed has no effect on ROA. The results of this study implies that football firms must maximize their IC resources to the fullest, especially in terms of human resources.