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Does Better Sports Performance Generate Higher Revenues in the English Premier League? A Panel Data Approach

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  • Marina Schloesser

    (Mendel University in Brno, Czech Republic)

  • Václav Adamec

    (Mendel University in Brno, Czech Republic)

Abstract

In this paper, we examined the relationship of sports performance and revenue generation in the English Premier League (EPL) to understand how performance on the field impacts financial performance of professional football clubs. Further, we verified if increased wage expenses help improve sports performance. Independent dynamic models were estimated by GMM on panel data including N = 28 EPL teams and on a reduced data set excluding the top six teams (N = 22), spanning from the 2008/2009 to 2018/2019 seasons (T = 11). The results of the GMM models confirmed that sports performance and revenue generation significantly correlate. Teams with better sports performance do generate higher revenues. Additionally, higher wage expenses result in better sports performance. A positive relationship of the variables in both hypotheses were established in both directions (full data). In all analyses of reduced data, the parameters of interest are nonsignificant. Dependencies exist due to the top teams.

Suggested Citation

  • Marina Schloesser & Václav Adamec, 2023. "Does Better Sports Performance Generate Higher Revenues in the English Premier League? A Panel Data Approach," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 9(1), pages 21-36.
    • Handle: RePEc:men:journl:v:9:y:2023:i:1:p:21-36
    DOI: 10.11118/ejobsat.2023.006
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    References listed on IDEAS

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    More about this item

    Keywords

    revenue; sports performance; panel data; Generalized Method of Moments; wage expenses; football;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • Z23 - Other Special Topics - - Sports Economics - - - Finance

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