Efficiency Evaluation of Football Teams in English Premier League: Application of Data Envelopment Analysis

Subject Areas : International Journal of Data Envelopment Analysis

Zahoor Ul Haq Bhat ¹ , D Sultana ² , Showkat Bashir ³

1 - Department of Physical Education & Sports Pondicherry University-605014
2 - Department of Physical Education & Sports Pondicherry University-605014
3 - Department of Physical Education & Sports Pondicherry University-605014

Received: 2017-04-09 Accepted : 2017-10-02 Published : 2017-10-25

Keywords: Slack Based Measure, Data Envelopment Analysis, Efficiency, Football,

Abstract :

In this paper, the financial efficiency of football clubs in English Premier League during 2016-17 season is determined. From a methodological perspective, we use Data Envelopment Analysis (DEA), a deterministic nonparametric frontier method. In particular, variable returns to scale and slack based measure are employed to assess whether teams are spending more resources than they need to achieve efficiency. DEA allows for inclusion of multiple inputs and outputs in assessing the efficiency and provides benchmarks for inefficient clubs. The input parameters selected are total expenses which include the salaries of players, coaches, managers and supporting staff. The output variables being revenue generated, profit gained and points scored at the end of the season.

References:

[1] Deloitte. 2018; Available from: https://www2.deloitte.com/uk/en/pages/sp orts-business-group/articles/annualreview-of-football-finance.html.

[2] Zambon Ferraresi F, Lera López F, García Cebrián LI. Sports Results Measurement and Efficiency in UEFA Champions League. 2017.

[3] Haas DJ. Productive efficiency of English football teams—a data envelopment analysis approach. Managerial and Decision Economics. 2003; 24 (5):403-10