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

Asfour, Antypas (2008) Measuring Efficiency of English Premier League Football Teams with a Data Envelopment Analysis Approach. [Dissertation (University of Nottingham only)] (Unpublished)

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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.

Item Type: Dissertation (University of Nottingham only)
Keywords: Technical Efficiency, Scale, Football, Data Envelopment Analysis, DEA, Sustaining Competitive Advantage
Depositing User: EP, Services
Date Deposited: 07 Jan 2009
Last Modified: 28 Jan 2018 05:35

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