Exploring the Relationship Between a Football Club’s Financial and Competitive Performance: An Empirical Analysis of English Premier League Clubs
Loading...
URL
Journal Title
Journal ISSN
Volume Title
School of Business |
Bachelor's thesis
Unless otherwise stated, all rights belong to the author. You may download, display and print this publication for Your own personal use. Commercial use is prohibited.
Authors
Date
2021
Department
Major/Subject
Mcode
Degree programme
(Mikkeli) Bachelor’s Program in International Business
Language
en
Pages
57 + 1
Series
Abstract
Objectives The main objective of this study was to explore the relationship between a football club’s competitive and financial performance. Another objective was determining the effect the chosen explanatory variables had on the sampled clubs’ annual revenues. Discussing and analysing how certain qualitative variables such as ownership structure and investment habits affect the clubs financial and competitive performance was also among the research objectives. Summary This study utilized empirical methods in the form of panel regression analysis to observe how quantitative variables encompassing league performance and financial success of the sampled football clubs affect their annual total revenues. The effects of various qualitative variables, such as club ownership structure and investment habits, on the sampled clubs’ financial and competitive performance were also discussed. Conclusions Three of the four explanatory variables were deemed statistically significant and showcased a positive relationship with the dependent variable – revenue. The number of achieved English Premier League points was found to have the strongest positive effect, followed by the clubs’ level of wage expenditure, followed by the level of transfer expenditure. The study ultimately found empirical evidence supporting a positive relationship between a football club’s financial and competitive performance. However, the study also acknowledged that there were still many important qualitative and quantitative variables that the regression model did not account for.Description
Thesis advisor
Zieba, MartaKeywords
football, panel regression, EPL, transfer expenditure, wage expenditure, competitive, financial, ownership