Financial fair play and competitive (im)balance in the Greek Super League

The inception of financial fair play (FFP) regulations in 2011 prompted debates about their potential impact on competitive balance within European football. Divisive arguments emerged: some anticipated a negative influence, foreseeing a decline in competitive balance, while others posited a contrary viewpoint, suggesting that these regulations could actually enhance competitive balance by diminishing the significance of financial supremacy. Amidst this discrepancy in perspectives, and unlike existing studies on major European football leagues, this investigation was prompted to scrutinize the influence of FFP on competitive balance within the Greek Super League. Utilizing the Herfindahl Index of Competitive Balance as the primary assessment tool, complemented by analyses involving the standard deviation of points, this study evaluated competitive balance within the league across 15 seasons, equally spread before and after the introduction of the FFP regulations. Echoing and even amplifying the concerns, the findings unveiled indications that FFP had engendered a decline in competitive balance within the Greek Super League, with a previously noted improvement abruptly halted and in fact reversed after the introduction of the FFP. This auspicious impact surpasses the intended primary objective of the regulations and underscores the influence they can have regarding the future (in)stability of club football. While acknowledging the imperative need for further exploration in this domain, this study represents an initial foray into understanding the effects of FFP regulations on competitive balance in medium and smaller sized European football.