Measuring Efficiency of English Premier League Football Teams with a Data Envelopment Analysis Approach

Professional football clubs are extraordinary businesses since their performance is evaluated both on and off the field of play. This study examines how close to their potential English Premier League Clubs play. Employing a deterministic Data Envelopment Analysis Approach, which has proved particul...

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Main Author: Asfour, Antypas
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2008
Subjects:
Online Access:https://eprints.nottingham.ac.uk/22010/
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author Asfour, Antypas
author_facet Asfour, Antypas
author_sort Asfour, Antypas
building Nottingham Research Data Repository
collection Online Access
description Professional football clubs are extraordinary businesses since their performance is evaluated both on and off the field of play. This study examines how close to their potential English Premier League Clubs play. Employing a deterministic Data Envelopment Analysis Approach, which has proved particularly useful when production involves multiple inputs and outputs, the efficiency of the 13 clubs that remained in the English Premier League throughout the period from 2001/2 to 2006/7, is measured. The input variables selected are total wage bills for all staff and transfer expenditure. Output is measured by points awarded, total revenues and transfer income. The results demonstrate that efficiency scores are not correlated with the final league position and that medium- and small-sized teams like Bolton Wanderers often outperform renowned teams like Chelsea. The sources of inefficiency are broken down into technical inefficiency and scale inefficiency and are analysed explicitly, with weaknesses of individual teams and how to overcome them being disclosed. The exemplar performance of Bolton is explored in depth with the club's sources of sustained competitive advantage being investigated. The study concludes that while most clubs operate close to efficient levels for the assessed models, there is scope for input reduction. Staff are being overpaid relative to their performance and clubs are being very inefficient in the transfer market due to incorrect evaluation of playing talent or because resources are not combined optimally. Consequently, this study has certain significant implications for the management of teams in both the business world, but especially in the sports world.
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spelling nottingham-220102018-01-28T05:35:46Z https://eprints.nottingham.ac.uk/22010/ Measuring Efficiency of English Premier League Football Teams with a Data Envelopment Analysis Approach Asfour, Antypas Professional football clubs are extraordinary businesses since their performance is evaluated both on and off the field of play. This study examines how close to their potential English Premier League Clubs play. Employing a deterministic Data Envelopment Analysis Approach, which has proved particularly useful when production involves multiple inputs and outputs, the efficiency of the 13 clubs that remained in the English Premier League throughout the period from 2001/2 to 2006/7, is measured. The input variables selected are total wage bills for all staff and transfer expenditure. Output is measured by points awarded, total revenues and transfer income. The results demonstrate that efficiency scores are not correlated with the final league position and that medium- and small-sized teams like Bolton Wanderers often outperform renowned teams like Chelsea. The sources of inefficiency are broken down into technical inefficiency and scale inefficiency and are analysed explicitly, with weaknesses of individual teams and how to overcome them being disclosed. The exemplar performance of Bolton is explored in depth with the club's sources of sustained competitive advantage being investigated. The study concludes that while most clubs operate close to efficient levels for the assessed models, there is scope for input reduction. Staff are being overpaid relative to their performance and clubs are being very inefficient in the transfer market due to incorrect evaluation of playing talent or because resources are not combined optimally. Consequently, this study has certain significant implications for the management of teams in both the business world, but especially in the sports world. 2008 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/22010/1/DISSERTATION_Antypas.pdf Asfour, Antypas (2008) Measuring Efficiency of English Premier League Football Teams with a Data Envelopment Analysis Approach. [Dissertation (University of Nottingham only)] (Unpublished) Technical Efficiency Scale Football Data Envelopment Analysis DEA Sustaining Competitive Advantage
spellingShingle Technical Efficiency
Scale
Football
Data Envelopment Analysis
DEA
Sustaining Competitive Advantage
Asfour, Antypas
Measuring Efficiency of English Premier League Football Teams with a Data Envelopment Analysis Approach
title Measuring Efficiency of English Premier League Football Teams with a Data Envelopment Analysis Approach
title_full Measuring Efficiency of English Premier League Football Teams with a Data Envelopment Analysis Approach
title_fullStr Measuring Efficiency of English Premier League Football Teams with a Data Envelopment Analysis Approach
title_full_unstemmed Measuring Efficiency of English Premier League Football Teams with a Data Envelopment Analysis Approach
title_short Measuring Efficiency of English Premier League Football Teams with a Data Envelopment Analysis Approach
title_sort measuring efficiency of english premier league football teams with a data envelopment analysis approach
topic Technical Efficiency
Scale
Football
Data Envelopment Analysis
DEA
Sustaining Competitive Advantage
url https://eprints.nottingham.ac.uk/22010/