Disclosure practices in sports organizations: a study in brazilian football clubs

Abstract

The study aims to identify the level of compulsory and voluntary disclosure of the football clubs of series A and B with regard to aspects of presentation of the financial statements. in the period from 2011 to 2015. Research with quantitative approach was held from the content analysis of the financial statements disclosed by 25 football clubs, being 17 belonging to the Brazilian Championship Series A and 8 series B of the same League. Three analytical categories were considered: (I) mandatory financial statements; (II) complementary accounting statements and reports; and (III) mandatory items for notes disclosure. The results showed that most clubs publishes the mandatory financial statements, however, many of these financial statements are preceded by audit opinion with reservations due to non-compliance with accounting regulations. This fact also makes it difficult the comparison of financial statements among the clubs and disclosed information quality. Most clubs do not publish the management report, added value statement and social balance. Only the costs with training athletes and the amortized value are shown in a complete manner by most clubs. However, a considerable number of sport companies do not attend the disclosure provisions required by accounting standards. The results indicate an average rate of disclosure 61% of the Series A clubs and 35.2% of Series B. It is concluded that the information disclosed by football clubs in financial statements and explanatory notes do not respect the principle of full disclosure.