Financial Performance of Football Clubs in Kenya Case of Kenyan Premier League

Abstract

This study is about the financial performance of football clubs in Kenya case of Kenyan premier League. The study had one objective to achieve: To analyze the financial performance of football clubs in Kenya. The research design was a descriptive study. Data was collected using financial statements and other sources of financial data of the selected 16 Kenyan premier league clubs. Descriptive, correlation coefficients and regression analysis was used to analyze the financial performance. The findings were presented in tables. It was also clear that there was a significant relationship between the financial performance of the football clubs in the premier League the financial performance variables represented by R2 value of 0.935 which translates to 93.5%. The study confirmed that the profitability of the Kenyan Premier League clubs is majorly affected by return on assets and the liquidity of football clubs in the league. The analysis further suggest that clubs should have strong financial performance policies in using its total assets effectively and finding ways of sustaining high liquidity ratios to guarantee meeting of their obligations in the unforeseeable future. The study recommends that football clubs need to ensure effective utilization of clubs assets to generate returns.