The role of salary cap, fan support, and club administration in football club performance

Introduction. Football is a globally significant industry, yet clubs face diverse operational challenges that affect performance. While extensive research has focused on European leagues, evidence from emerging football markets, such as Ethiopia, remains limited. Objective: This study investigates the effects of Salary Cap, fan support, and club administration on the performance of Ethiopian Premier League (EPL) clubs. Method: A quantitative research design was employed. Data were collected through structured questionnaires and analyzed using reliability and validity tests, correlation, and regression analyses. Results: Salary Cap (r = –0.348, p < 0.001) and club administration (r = –0.626, p < 0.001) had significant negative effects on club performance, whereas fan support showed no significant association (r = 0.074, p > 0.05). Regression analysis indicated that the three variables together explained 45.4% of the variance in performance, with Salary Cap (β = –0.192, p < 0.001) and club administration (β = –0.290, p < 0.001) identified as key predictors. Discussion: The findings highlight that financial regulation and governance critically shape club success, while fan support alone does not significantly influence performance in the Ethiopian context. Conclusion: Effective management of financial policies and club administration is essential for improving performance in emerging football leagues, offering actionable insights for strategic management and policy development.