Investigation into the efficiencies of European football clubs with bi-objective multi-criteria data envelopment analysis

Abstract

A financially successful football club can achieve sporting achievements as well as become financially stable. In other words, the success of football clubs depends on both financial and sportive success. Contrary to the studies in the literature that focus on financial and sportive success separately, the present study aimed to examine the 5-season activities of 10 football clubs in the big-five league, which are the top leagues of Europe, by using financial and sports criteria. Bi-objective multi criteria data envelopment analysis (BiO-MCDEA) was used for the efficiency analysis. In the study, the number of social media followers, the average number of viewers and total market value were used as input, and the UEFA club score and total revenues were used as output. As a result, Arsenal, Paris Saint-Germain, and Juventus were determined as efficient in the 2015-2016 season, Paris Saint-Germain and Liverpool in the 2016-2017 season, Manchester United, Paris Saint-Germain and Chelsea in the 2016-2017 season, Manchester United, Real Madrid, Bayern Munich and Arsenal in the 2018-2019 season, Manchester United, Paris Saint-Germain and Chelsea. The reasons why PSG was the most successful club in the efficiency analysis (efficient in four out of five seasons) were examined. In addition, in the sensitivity analysis conducted to determine the effect of inputs and outputs on the model, it was concluded that efficiency was highly related to financial data.