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A team can earn a huge amount of money in this year but it can find itself losing money in the next year.
The uncertainties root from the uncertain results in the league games. The revenues of football clubs heavily depend on the performance of the team in the league. A simple example is that the football club which does well may have a higher revenue than its counterparts due to the elevated demand of the club-related merchandize.
So, if the underlying principles that affect the team’s revenue-generating factor can be identified, predicting the company performance will be much easier. This shall be discussed in the following by analyzing the annual reports from 2004-2007 of three football clubs, which are Arsenal Football Club, Liverpool Football Club and Tottenham Hotspur...
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