€1 Million Boost

An Empirical Analysis of Revenue's Impact on the Success of European Football Teams

Abstract

This study aims to quantify the impact of a €1 million change in revenue on the performance of professional football teams. The dependent variable, points per game (PPG), is analyzed in relation to revenue in million euros as the independent variable. The target population comprises European professional football teams, specifically those from the top four leagues according to the Union of European Football Associations’ (UEFA) five-year ranking for the 2022/2023 season: the Bundesliga, Premier League, La Liga, and Serie A. From this target population, an initial sample of 78 teams was examined, with 77 teams qualifying after the data cleansing process. Data were thoroughly prepared and subjected to a regression analysis. Our findings indicate that an increase of €1,000,000 in revenue corresponds to an increase of 0.0015 PPG, a statistically significant result with a p-value of less than 0.001. This suggests that increased revenue is associated with enhanced team performance in European leagues. The model explains 38% of the variance in performance, as indicated by an R² value of 0.38. This study contributes to existing literature by quantifying revenue's impact on football performance, providing both theoretical insights and practical implications. The results, derived from rigorous scientific methods, can guide stakeholders in making informed decisions. The study also proposes avenues for future research, such as employing time series analysis to investigate revenue's impact over varying periods.