Transfer Spending in the English Premier League: The Haves and the Have Nots

43 Pages Posted: 19 Feb 2015

See all articles by Richard C. K. Burdekin

Richard C. K. Burdekin

Claremont McKenna College - Robert Day School of Economics and Finance

Michael Franklin

Independent

Date Written: February 18, 2015

Abstract

Transfer spending among English Premier League clubs has increased drastically since the inception of the league, often funded by extremely wealthy owners who began purchasing majority stakes in clubs. Using data from the Deloitte Annual Review of Football Finance, we allow for different tiers of football clubs representing the haves and the have nots as well as a comparison between the first and second decades of the Premier League. Our finding that heightened spending has improved on-field performance only at the expense of hurting profitability is in line with win maximisation surmounting profit maximisation in today’s Premier League.

Keywords: English football; transfer spending; profit maximisation

JEL Classification: G15

Suggested Citation

Burdekin, Richard C. K. and Franklin, Michael, Transfer Spending in the English Premier League: The Haves and the Have Nots (February 18, 2015). National Institute Economic Review, Forthcoming; Claremont McKenna College Robert Day School of Economics and Finance Research Paper. Available at SSRN: https://ssrn.com/abstract=2566949

Richard C. K. Burdekin (Contact Author)

Claremont McKenna College - Robert Day School of Economics and Finance ( email )

500 E. Ninth Street
Claremont, CA 91711
United States

Michael Franklin

Independent

No Address Available

Register to save articles to
your library

Register

Paper statistics

Downloads
154
rank
188,018
Abstract Views
877
PlumX Metrics
!

Under construction: SSRN citations will be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information