This article uses an econometric frontier model to evaluate the performance of football clubs present in the English F.A. Premier League from 1998-1999 to 2002-2003, combining sport and financial variables. A stochastic Cobb-Douglas production frontier model is used to generate football club efficiency scores. We conclude that the price of labour, the price of capital players the price of capital stadium, points gained, attendance, and turnover all play a major role in football efficiency and find that the efficiency scores are mixed.
Aigner, D. J., Lovell, C. A. K., & Schmidt, P. (1977). Formulation and estimation of stochastic frontier production function models. Journal of Econometrics, 6, 21-37.
2.
Audas, R., Dobson, S., & Goddard, J. (2000). Organizational performance and managerial turnover. Managerial and Decision Economics, 20, 305-318.
3.
Banker, R. D., Charnes, A., & Cooper, W. W. (1984). Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management Science, 30, 1078-1092.
4.
Barros, C. P. (2003). Incentive regulation and efficiency in sports organizational training activities. Sport Management Review, 6(1), 33-52.
5.
Barros, C. P., & Leach, S. (2005). Performance evaluation of the English Premier Football League with data envelopment analysis (Working paper). London: Imperial College London.
6.
Barros, C. P., & Santos, A. (2003). Productivity in sports organisational training activities: A DEA study. European Journal of Sport Management Quarterly, 1, 46-65.
7.
Barros, C. P., & Santos, A. (2005). Les relations entre performance sportive et la performance financière dans le football: Application au cas du football Portugaise. In G. Bolle & M. Dsbordes (Eds.), Marketing et football: Une perspective internationale [Marketing and football: An international perspective]. Voiron, France: Presses Universitaires du Sport.
8.
Battese, G. E., & Coelli, T. J. (1988). Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data. Journal of Econometrics, 38, 387-399.
9.
Battese, G. E., & Corra, G. S. (1977). Estimation of a production frontier model: With application to the pastoral zone of eastern Australia. Australian Journal of Agricultural Economics, 21, 169-179.
10.
Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring efficiency of decision-making units. European Journal of Operational Research, 2, 429-444.
11.
Coelli, T. J. (1996). A guide to Frontier version 4.1: A computer program for stochastic frontier and costs function estimation (Working paper No. 7/96). Armindale, Australia: Centre for Efficiency and Productivity Analysis, University of New England.
12.
Coelli, T. J., Rao, P., & Battese, G. E. (1998). An introduction to efficiency and productivity analysis. Boston: Kluwer Academic.
13.
Cornes, R. (1992). Duality and modern economics. Cambridge, UK: Cambridge University Press.
14.
Dawson, P., Dobson, S., & Gerrard, B. (2000). Stochastic frontier and the temporal structure of managerial efficiency in English soccer. Journal of Sports Economics, 1, 341-362.
15.
Deloitte & Touche. (2004). Annual report of professional football finance. London.
16.
Driffield, N., & Munday, M. (2001) Foreign manufacturing, regional agglomeration and technical efficiency in UK industries: A stochastic production frontier approach. Regional Studies, 35, 391-399.
17.
El-Hodiri, M., & Quirk, J. (1971). An economic model of professional sports leagues. Journal of Political Economy, 79, 1302-1319.
18.
Fare, R., Grosskopf, S., Yaisarwarng, S., Li, S., & Wang, Z. (1990) Productivity growth in Illinois electric utilities. Resources and Energy, 12, 383-398.
19.
Farrell, M. J. (1957). The measurement of productive efficiency. Journal of the Royal Statistical Society, 120, 253-290.
20.
Fizel, J. L., & D’Itri, M. P. (1996). Estimating managerial efficiency: The case of college basketball coaches. Journal of Sport Management, 10, 435-445.
21.
Fizel, J. L., & D’Itri, M. P. (1997). Managerial efficiency, managerial succession and organizational performance. Managerial and Decision Economics, 18, 295-308.
22.
Forth, R., & Quirk, J. (1995). Cross-subsidiation, incentives and outcomes in professional leagues. Journal of Economic Literature, 33, 1265-1299.
23.
Greene, W. H. (2003). Econometric analysis (5th ed.). Upper Saddle River, NJ: Prentice Hall.
24.
Haas, D. J. (2003a). Financial efficiency in Major League Soccer. Journal of Sport Economics, 4(3), 203-215
25.
Haas, D. J. (2003b). Productive efficiency of English Football Teams: A data envelopment approach. Managerial and Decision Economics, 24, 403-410.
26.
Hadley, L., Poitras, M., Ruggiero, J., & Knowles, S. (2000). Performance evaluation of National Football League teams. Managerial and Decision Economics, 21, 63-70.
27.
Hoeffler, R. A., & Payne, J. E. (1997). Measuring efficiency in the National Basketball Association. Economic Letters, 55, 293-299.
28.
Kumbhakar, S. C. (1987). Production frontiers and panel data: an application to U.S. Class 1 railroads. Journal of Business and Economics Statistics, 5, 249-255.
29.
Kumbhakar, S. C., & Lovell, C. A. K. (2000). Stochastic frontier analysis. Cambridge, UK: Cambridge University Press.
30.
Meeusen, W., & Van den Broeck, J. (1977). Efficiency estimation from a Cobb-Douglas production function with composed error. International Economic Review, 18, 435-444.
31.
Porter, P., & Scully, G. W. (1982). Measuring managerial efficiency: The case of baseball. Southern Economic Journal, 48, 642-650.
32.
Scully, G. W. (1994). Managerial efficiency and survivability in professional team sports. Managerial and Decision Economics, 15, 403-411.
33.
Zak, T. A., Huang, C. J., & Siegfried, J. J. (1979) Production efficiency: The case of professional basketball. Journal of Business, 52, 379-392.