Comparative Analysis of the Financial Performance of Football Clubs Using Multi-Criteria Decision-Making Methods: A TOPSIS Application on BIST Data for the 2020–2024 Period

Abstract

Purpose – The aim of this study is to analyze the financial performance of the four major football clubs listed on Borsa Istanbul (Beşiktaş, Fenerbahçe, Galatasaray, and Trabzonspor) for the period 2020–2024 using the TOPSIS method, and to compare the results with other multi-criteria decision-making (MCDM) studies in the literature in terms of methodology and ranking outcomes.
Design/methodology/approach – Based on the 2020–2024 data obtained from the Public Disclosure Platform (KAP), five financial ratios were calculated to represent liquidity, financial risk, and profitability (Current Ratio, Leverage Ratio, Net Profit Margin, Return on Equity, and Return on Assets). All criteria were equally weighted. Due to the high correlation (>90%) identified between Net Profit Margin and Return on Assets, the latter was excluded from the analysis to avoid multicollinearity.
Results – The annual leadership ranking is Fenerbahçe in 2020, 2022, and 2023, Beşiktaş in 2021, and Galatasaray in 2024. According to the period average, the ranking is Galatasaray, Trabzonspor, Beşiktaş, and Fenerbahçe. In the robustness test in which Return on Assets was included in the model, the annual leaders did not change, while ranking changes were observed in the middle positions in 2021 and in the period average. This situation shows that the model is generally robust, but that criterion selection can be decisive among clubs with close performances.
Discussion – The study demonstrates that the TOPSIS method is an effective tool for evaluating the performance of sports firms. The consistency of annual leadership rankings across robustness tests confirms the reliability of the method, while the observed changes in the average ranking and in 2021 underscore the critical role of criterion selection in shaping final results. This finding provides empirical support for the ongoing debate in the literature on criterion selection and multicollinearity in MCDM applications.