Evaluating the Economic Potential of Iran’s Football Industry: A Performance Gap Analysis

Document Type : Research Article

Authors

1 Associate Professor, Department of Economics, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran. (Corresponding Author).

2 M.A. Student in Economics, Department of Economics, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran.

10.22084/aes.2025.30891.3786

Abstract

In today’s global economy, sports, especially football, have become key drivers of economic activity, with an estimated fan base of five billion worldwide. Professional football is no longer just entertainment; it has evolved into a dynamic sector that makes substantial contributions to employment and economic output. Football clubs, as multifaceted economic entities, engage in competition not only on the field but also within a fiercely competitive commercial and financial environment. This study employs the Data Envelopment Analysis method to assess the economic performance and growth potential of Iran’s football industry. By analyzing data from 48 football clubs—including a selected group of international benchmarks and eight clubs from Iran’s Premier League—the research provides a comparative evaluation of technical efficiency across diverse organizational and market contexts. The results highlight a stark contrast between benchmark clubs and Iranian clubs. Only a handful of international clubs are positioned on the efficiency frontier, while Iranian clubs show inefficiency levels exceeding 90%, indicating a significant performance gap. This suggests a latent growth potential of more than 700% in critical areas such as revenue, market value, and global competitiveness. The findings underscore the need for institutional, financial, and managerial reforms to address these inefficiencies and unlock the considerable economic potential of Iran’s football industry. Improving technical efficiency could significantly boost the international standing of Iranian clubs and contribute to the broader development of the country’s sports economy.

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Journal of Applied Economics Studies in Iran
Volume 14, Issue 55
October 2025
Pages 93-119

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