How the UEFA Financial Fair Play regulations affect football clubs' priorities and leagues' competitive balance?

Institutional and legal reforms applied in the context of sports competitions often provoke structural changes that can be empirically investigated. Using a data set of 560 observations (20 teams per season, from 2009/10 to 2015/16, of teams playing in the Premier League, La Liga, Serie A and Ligue 1), this paper examines how the UEFA Financial Fair Play (FFP) regulations may have altered the football clubs' decisions concerning their sport and financial priorities. Moreover, based on a simple theoretical description, the paper shows that the increasing financial stability promoted by the FFP rules might actually imply - as an undesired side effect - a declined competitive balance affecting the European football leagues. Finally, the paper discusses some policy issues and recommendations.