English Premier League – Footballer’s Wages

In a follow-up to “The Cost of Success: English Premier League“, where we saw that to a certain extent, that spending has brought clubs more success (i.e. higher positions in the league table), but spending more money on transfers didn’t necessarily reflect all the causes for success.

Rules

We can use the wages paid to all players over 5 seasons and compare it to the number of points accumulated over 5 seasons.

The assumption is that wages would reflect players’ skills and contributions and take into account contributions made by players not bought in that 5 year period.

The champions are awarded 20 points, runners-up 19 and so on, the team that finishes in the bottom gets 1.

The ★ indicates teams that are in “Top Four”, the four teams that consistently finished in the top four between 2005-2009.

Do wages reflect performance better?

There’s a clearer relationship between wages and points than transfer spending and points.

The teams who have a higher total wage payroll generally have more points.

The “Top Four” teams have the four highest wage spending and have the highest number of points.

Footballer's Wages

Drawbacks

  • Players aren’t the only cause of success, managers could’ve gotten better performances from lower wage players.
  • If teams get relegated, they start in the lower league, where they could perform better.
  • There could be a time lag between spending and success.
  • Wages don’t necessarily reflect how well the player has played.

Source: Deloitte Money League


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