Implementing financial fair play rules at Latvian-Estonian basketball league

Abstract

Research problem addressed in this paper is what should be financial fair play rules of the Latvian-Estonian basketball league in order to ensure financial stability of the teams competing in the league. Current situation in Latvian professional basketball teams isn't the best due to the recent tax reform in the country. The aim of the paper is to discover what financial fair play rules should be implemented in Latvian-Estonian basketball league in order to ensure financial stability of the teams competing in the league. The main parts of the paper were about the concept of the financial stability and fair play rules and analyzing Latvian basketball teams and comparative basketball leagues around the world. Main results were that there are no financial stability and fair play rules in the Latvian-Estonian basketball league and the situation with Latvian basketball team finances isn't positive. Main recommendations for the league are to introduce minimum budget that would help teams in the long run and to check financial statements of the teams every year in order to see financial situation of the teams.