Investigating the Relationship Between the Amount of Money a Football Club Receives and its Success
In this investigation, I will look at a set of statistics for English
football clubs for the 1998 - 1999 season. Using these, I will look at
how the amount of money a football club receives affects its success.
Measuring 'success'
-------------------
It is difficult to measure success, as there is no numerical way to
quantify it. In my investigation, I will look at success in terms of
achievements on the pitch as opposed to the success of the club as a
business. I will measure success by looking at the relationship
between money and three factors. These are:
* League Position - This is a measure of the club's 'success' as the
better the team performs, the higher the league position.
* Goal Difference - This is calculated by total goals scored minus
total goals conceded. This is a measure of the team's success as
the better the team performs, the greater the goals scored and the
less the goals conceded, thus the greater the goal difference.
* Stadium Capacity - This can be considered as measure of success.
It can be argued that the more successful a team is, the better
supported it will be and thus the greater the stadium capacity in
order to accommodate more fans. It is important to note that this
factor is not as significant a measure of 'success' that the other
2 factors as there could well be exceptions to the above argument.
E.g. a successful and well-supported team could play in a very
small stadium if the stadium was in a built up area where there
was no space t...
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-34
P
Sheffield Wed
12
38
7
5
7
20
15
6
2
11
21
27
46
39859
£1,984,000
-1
P
Southampton
17
38
9
4
6
29
26
2
4
13
8
38
41
15000
£3,500,000
-27
P
Tottenham
11
38
7
7
5
28
26
4
7
8
19
24
47
36236
£1,998,000
-3
P
West Ham Utd
5
38
11
3
5
32
26
5
6
8
14
27
57
26054
£2,000,000
-7
P
Wimbledon
16
38
7
7
5
22
21
3
5
11
18
42
42
26297
£0
-23
Siegfried, J., & Zimbalist, A. (2000). The economics of sports facilities and their communities. The Journal of Economic Perspectives, , 95-114.
By abolishing the salary cap, the Department of Justice ruling has had a substantial impact on the competitive balance of the NFL. Because the salary cap was removed, over the past 10 years teams from big markets, or who have deep-pocketed owners, have been spending money rampantly. Small market teams have been marginalized to a point of having very little chance to win, as they cannot afford to spend freely on talent, as they do not have the income potential to make money. This progression is similar to what we have seen over the years in professional soccer, specifically in the UEFA champion’s league and Spain’s. In the UEFA Champions League, 12 teams have combined to win 48 out of the 58 championships, or 82.76% of championships. There has been such a lack of Competitive Balance in revenue splitting and salary cap free soccer that even among the best teams in the world there is great disparity. An even more extreme example can be found in Spain’s La Liga, where the top 2 teams have won 65.85% of the league’s 82 championships and the top 5 teams have won 93.9% of the league’s championships. This lack of competitive balance is certainly caused by a lack of salary cap, as the top 2 teams spend up to €190,000,000 per year on players while lower level teams spend up to €14,000,000 per year on players. The NFL’s continued revenue sharing, however, has made it so that disparity in the league isn’t quite as large as it is in professional soccer. Despite these effects of Revenue sharing, the lack of a sal...
In the 2015 AFC Championship Game between the New England Patriots and the Indianapolis Colts, the Patriots were accused of tampering with their footballs. They allegedly deflated the footballs to 2 PSI below the legal limit, supposedly giving them an unconstituted and illegal advantage. On May 11th, 2015, the National Football League ruled that the Patriots organization was guilty, penalizing them with a 1 million dollar fine, the loss of a first round pick in the 2016 NFL draft, and the loss of a fourth round pick in the 2017 draft. Tom Brady, the quarterback, was personally penalized with a four-game suspension for his involvement in the incident. He claims, however, to be innocent and has been exhausting every possible legal avenue to avoid his punishment.
De Varona, D. (2003). ‘M’s’ in football: Myths, management, marketing, media and money. A reprise. Soccer & Society, 4, 7-13.
Football is a very famous and well-known sport all over the world. Fans go crazy about their favorite clubs and teams play as hard as they can to win the championship. What a lot of people do not talk about is the money aspect of football. Every year football clubs spend millions on buying and selling players, which is called transfers. Apart from that, the amounts of money clubs pay their players, as a salary is outrageous depending on the team. In many leagues, there is the firm belief that spending a lot of money on players leads to success. It is easy to pick out the teams that spend most money on their players since their wage bills are much higher than the rest when compared. Looking at the English Premier League, which consists of 20 different teams, one is able to see how much teams spend on their players. This brings up questions such as: how can we measure how worthy a player is and decide how much to pay them? Or, how do teams decide that a player is good enough? Why do players who seem to be just as good as others get paid so much more? These research questions are all very interesting, though what will be focused on is the relation between success and the amount of money spent on players’ salaries.
Many people can easily picture this scene in their minds: the roaring crowds, the smell of easy- to-eat foods, and the thousands of people all dressed in the same colors. That’s a description of game day at a major college. College sports bring in a lot of money, yet their players don’t receive any money. Many people view this as something that needs to be changed while others believe that only professionals should be compensated. In the essays “Let Stars Get Paid” and “College Athletes Should Not Be Paid”, both authors give their opinions on whether or not college athletes should be paid. College athletes should not be paid because they already receive many benefits from being athletes.
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Area political leaders, local community heads as well as owners of professional sports franchise sometimes claim that a pro sports stadium and teams are vital sources of positive economic growth in urban areas. Even though most of the stadiums and franchises supposedly donate a whole lot of money for providing new jobs, and to also provide the justification for millions of dollars ranging in the hundreds for public subsidies for the building of an assortment of new pro sports teams in the U.S. over the past ten years. Even with the outrage, some numbers crunchers have found no evidence of a positive economic impact of professional sports teams and facilities on urban economies "It's a zero-sum game," Rolnick said. "In fact, it can be a negative-sum game.”
Noll, Roger, and Zimbalist, Andrew. Sports, Jobs, and Taxes: The Economic Impact of Sports Teams and Stadiums. Brooking institutions press, Summer 1997. Vol. 15 No. 3.
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One of the many positives externalities that professional sports teams can generate is increasing the city’s revenue. With a city having a professional sports team, the people that
It is a game that is played with two sides. Each side will have eleven players, including the goal-keeper. Soccer, also known as Football, is a widely known sport these days. Because of the confusion between American Football and football, the term football is mostly used in Europe and Africa. Originated in England, soccer is now a profitable sport besides its recreational, health significance, and competitive atmosphere.
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