Financing and solvency of football clubs: the case of clubs in Morocco and comparisons with Europe, Africa and Gulf Countries

Abstract

The financial sustainability of professional football clubs has become a critical issue in sports economics, particularly in emerging football markets such as Morocco. Despite recent reforms aimed at professionalizing the sector, Moroccan clubs continue to face persistent financial imbalances and a strong reliance on public funding. Against this backdrop, this study investigates the financing structures of Moroccan football clubs and assesses their short-term solvency, while positioning the Moroccan model within a broader international comparison involving European, African, and Gulf countries.

Adopting a quantitative and comparative approach, the study analyzes a sample of six Moroccan professional clubs, representing approximately 19% of the national professional league system, over a three-season period (2022/2023–2024/2025). Solvency is measured using the current ratio (current assets to current liabilities), a widely used indicator of short-term financial stability.

The findings reveal a structurally fragile financial position among most clubs, with four out of six exhibiting average solvency ratios below the critical threshold of 1. The overall sample average stands at approximately 0.83, indicating that short-term liabilities often exceed liquid assets. While certain clubs, such as RS Berkane, demonstrate relatively stable financial management (average ratio of 1.03), others, including JS Soualem (0.74) and CAY Berrechid (0.70), face significant liquidity constraints. Comparative insights show that, unlike European clubs characterized by diversified revenue streams and regulatory frameworks, Moroccan clubs remain closer to African models marked by public dependency, while differing from Gulf systems driven by substantial state-backed investments.

These results suggest that the financial fragility of Moroccan football clubs is not merely a matter of resource scarcity but rather reflects structural weaknesses in revenue diversification and financial governance. The study highlights the need for improved regulatory mechanisms, enhanced commercial strategies, and stronger financial discipline to ensure long-term sustainability in Moroccan professional football.

Classification JEL : Z23; G30; L83

Paper type : Empirical Research