The Economic Efficiency of European Football Clubs – Data Envelopment Analysis (DEA) Approach

APA 6th edition
In-text: (Pyatunin, Vishnyakova, Sherstneva, Mironova, Dneprov & Grabozdin, 2016)
Your Bibliography: Pyatunin, A.V., Vishnyakova, A.B., Sherstneva, N.L., Mironova, S.P., Dneprov, S.A. & Grabozdin, Y.P. (2016). The Economic Efficiency of European Football Clubs – Data Envelopment Analysis (DEA) Approach. International Journal of Environmental and Science Education, 11(15), 7515-7534.

Harvard
In-text: (Pyatunin, Vishnyakova, Sherstneva, Mironova, Dneprov and Grabozdin, 2016)
Your Bibliography: Pyatunin, A., Vishnyakova, A., Sherstneva, N., Mironova, S., Dneprov, S. and Grabozdin, Y. (2016). The Economic Efficiency of European Football Clubs – Data Envelopment Analysis (DEA) Approach. International Journal of Environmental and Science Education, 11(15), pp. 7515-7534.

Chicago 16th edition
In-text: (Pyatunin, Vishnyakova, Sherstneva, Mironova, Dneprov and Grabozdin 2016)
Your Bibliography: Pyatunin, Aleksey V., Angelina B. Vishnyakova, Natalia L. Sherstneva, Svetlana P. Mironova, Sergey A. Dneprov and Yuriy P. Grabozdin (2016). "The Economic Efficiency of European Football Clubs – Data Envelopment Analysis (DEA) Approach". International Journal of Environmental and Science Education 11 (15):7515-7534.

Abstract

The relevance of this paper lies in the fact that football business has grown significantly in the past 20 years and football clubs have become large companies, which in an effort to be profitable and successful on the field need to improve the efficiency of their business. The aim of this article is to measure economic efficiency of 48 big European football clubs and assess the relationship between efficiency and different financial and sportive indicators (variables). To measure efficiency, we used both widely used Data Envelopment Analysis (DEA) method and its extensions: DEA Super-efficiency and DEA Cross-efficiency models. The results showed that these methods can successively be applied to football clubs’ efficiency measurement and the analysis of the them can help to explain why some clubs are efficient or inefficient and which factors affects the efficiency. This paper will be interesting football clubs’ managers, football analytics, economists and other people interested in football business because we combine in it the most interesting ideas and methods about football clubs’ efficiency measurement.

Keywords: Efficiency, football clubs, economic efficiency, data envelopment analysis (DEA), spearman's rank correlation coefficient

References

Andersen, P. & Petersen, N. (1993). A Procedure for Ranking Efficient Units in Data Envelopment Analysis. Management Science, 39(10), 132-143.

Andersen, T., Hollingsworth, K. & Inman, L. (2002). The fixed weighting nature of a cross-evaluation model. Journal of Productivity Analysis,1, 249-255.

Banker, R., Charnes, A. & Cooper, W. (1984). Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis. Management Science, 30, 1078-1092.

Barros, C. & Douvis, J. (2009). Comparative analysis of football efficiency among two small European countries: Portugal and Greece. International Journal of Sport Management and Marketing, 6, 183-199.

Barros, C. & Garcia-del-Barrio, P. (2008). Efficiency Measurement of the English Football Premier League with a Random Frontier Model. Economic Modelling, 25, 994-1002.

Charnes, A., Cooper, W. & Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research, 2, 429-444.

Coelly, T., Prasada Rao, D., O'Donnel, C. & Battese, G. (2005).An Introduction to Efficiency and Productivity Analysis. New York: Springer, 242 p.

Cook, D. & Zhu, J. (2015).Data Envelopment Analysis. New York: Springer, 364 p.

Cooper, W., Seiford, L. & Tone, K. (2000).Data Envelopment Analysis: A Comprehensive Text with Models, Applications, References and DEA- Solver Software. Norwell, Massachusetts: Kluwer Academic Publishers, 311 p.

Dawson, P. & Dobson, S. (2002). Managerial efficiency and human capital: an application to English association football. Managerial and Decision Economics, 23, 471-486.

Deloitte. (2016).Deloitte Football Money League 2016.Direct access: http://www2.deloitte.com/uk/en/pages/sports-business-group/articles/deloitte-football-money-league.html

Espitia-Escuer, M. & García-Cebrián, L. (2004). Measuring the Efficiency of Spanish First-Division Soccer Teams. Journal of Sports Economics, 5, 329-346.

Espitia-Escuer, M. & García-Cebrián, L. (2014). Comparison of efficiency measures for Spanish first division football teams using data envelopment and stochastic frontier analyses. Atlantic Review of Economics, 2, 66-74.

Espitia-Escuer, M. & García-Cebrián, L. (2015a).Organisational Design Factors and the Efficiency of Spanish First Division Football Teams. Direct access: https://zaguan.unizar.es/record/47391/files/texto_completo.pdf

Espitia-Escuer, M. & García-Cebrián, L. (2015b).Technical progress and efficiency changes in football teams participating in the UEFA Champions League.Direct access:: https://zaguan.unizar.es/record/47390/files/texto_completo.pdf

Faere, R. & Lovell, C. (1978). Measuring the technical efficiency of production. Journal of Economic Theory, 19, 150-162.

Faere, R., Grosskopf, S. & Logan, J. (1983). The Relative Efficiency of Illinois Electric Utilities. Resources and Energy, 5, 349-367.

Farrel, M. (1957). The Measurement of Productive Efficiency. Journal of Royal Statistical Society, 120, 253-290.

Frick, B. & Simmons, R. (2007). The Impact of Managerial Quality on Organizational Performance: Evidence from German Soccer. Working Paper Series,3, 1-20.

Garcia-Sanchez, I. (2007). Efficiency and effectiveness of Spanish football teams: a three- stage-DEA approach. Central European Journal of Operations Research, 15, 21-45.

González-Gómez, F. (2010).Can we be satisfied with our football team? Evidence from Spanish professional football. Direct access: http://www.ugr.es/~teoriahe/RePEc/gra/wpaper/thepape-s08_11.pdf

Guzman, I. & Morrow, S. (2007). Measuring efficiency and productivity in professional football teams: evidence from the English Premier League. Central European Journal of Operations Research, 15, 309-328.

Guzman, I. (2006). Measuring Efficiency and Sustainable Growth in Spanish Football Teams. European Sport Management Quarterly, 6, 267-287.

Haas, D. (2003). Productive efficiency of English 16. football teams-a data envelopment analysis approach. Managerial and Decision Economics, 24, 403-410.

Haas, D., Kocher, M. & Sutter, M. (2004). Measuring Efficiency of German Football Teams by Data Envelopment Analysis. Central European Journal of Operations Research, 12, 251-268.

Halkos, G. & Tzeremes, N. (2011). A non-parametric analysis of the efficiency of the top European football clubs. Direct access: https://mpra.ub.uni-muenchen.de/31173/1/MPRA_paper_311-73.pdf

Jardin, M. (2009).Efficiency of French football clubs and its dynamics.Direct access: https://mpra.ub.uni-muenchen.de/19828/

Karaduman, A. (2006).Data Envelopment Analysis and Malmquist Total Factor Productivity (TFP) Index: An application to Turkish automotive industry.Direct access: https://etd.lib.metu.edu.tr/upload/12607821/index.pdf

Kern, M. & Süssmuth, B. (2003).Managerial Efficiency in German Top League Soccer. Direct access: https://epub.ub.uni-muenchen.de/5/

Koopmans, T. (1951).An analysis of production as an efficient combination of activities.London: John Wiley and Sons, 352 p.

Kulikova, L. & Goshunova, A. (2013). Measuring Efficiency of Professional Football Club in Contemporary Researches. World Applied Sciences Journal, 25, 247-257.

Kulikova, L. & Goshunova, A. (2014). Efficiency measurement of professional football clubs: a non-parametric approach. Life Science Journal, 11, 117-122.

Lukinova, O.A., Smarchkova, L.V. & Pisarenko, N.D. (2014). Assessment and management of social and economic efficiency of activity of economic agents. Vestnik Samara State University of Economics, 12(122), 74-78.

Ribeiro, A. & Lima, F. (2012). Portuguese football league efficiency and players' wages. Applied Economics Letters, 19, 599-602.

Soleimani-Damaneh, J., Hamidi, M. & Sajadi, N. (2011). Evaluating the Performance of Iranian Football Teams Utilizing Linear Programming. American Journal of Operations Research, 1, 65-72.

Yawe, B. (2010). Hospital Performance Evaluation in Uganda: A Super-Efficiency Data Envelope Analysis Model. Zambia Social Science Journal, 1, 153-165.

Zhao, D. (2013). Measuring Technical Efficiency of the Japanese Professional Football.Direct access: http://scholarcommons.usf.edu/cgi/viewcontent.cgi?article=6168&context=etd