Essay on Football Club 's Wage Bill And Its Performance

Essay on Football Club 's Wage Bill And Its Performance

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Professional football clubs invest in a lot of factors such as players’ wages, stadiums, customer services, etc. They receive a return income from ticket prices, sponsorship, broadcast rights, etc. Professional football officially started in England, in 1863 where football clubs hired mostly local players; whereas, now the premier league is more global, bringing in players around the world. Clubs must risk money by hiring players with the expectation of success in competition, attracting fans dependent on how the team performs. Football clubs who become successful can grow by improving the quality of their squad and by enlarging their stadium; this can increase the performance of the club. Unsuccessful teams can risk financial failure if the club fails to match promised expenditure.
The correlation between a football club’s wage bill and its performance are shown in figure 1. The y-axis relates to the average league position of the clubs in the English premiership league, over 15 years; the x-axis represents the clubs average wage spending relative to the average wage spending of all the clubs in the league. The figure shows that there is a strong correlation between the wage bill for the football club and their club results. The data was analysed and changed so there was a constant correlation between the two factors. In figure 2, the average league position of a club the data was adapted using the following calculation (-log(p/45-p), where ‘p’ was the data before the adaptation. For the average wage spending relative to the average wage spending of all clubs, all the data was logged (base 10). This created a constant line of best fit with a strong positive correlation.
We know that clubs compete aggressively to hire players as ...

... middle of paper ... closely related to league position. Poor performance on the pitch means not as many tickets are sold, resulting in a reduced amount of income from merchandise, sponsorship and broadcasting.
In conclusion we can see from the graph that there is a strong correlation between the wage bill and the performance of a football club. The dotted line represents the area of strong correlation, 90% of teams are within this area proving there is a strong argument that the graph supports the essay title. Although the counter argument shows some teams do not follow this trend; there is not strong enough evidence to overrule the fact that there is a positive correlation of average wage expenditure and the average league position. Therefore, from the evidence above we can conclude that there is a positive correlation between the wage bill and the performance of a football club.

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