The relationship between the wage bill of the football clubs and their probability of being champion in their national leagues

Abstract

This paper aims to find what type of relationship exists between the wage bill of 20 football clubs and the probability of winning the national championship in six of the major European Leagues (Portuguese, Spanish, Italian, French, German and English). In this work, I will use four econometric regressions to study how the wage component could influence the number of points and the probability of succeed in the national championship on each of the six studied leagues. Results show that the salary components influence positively the results of teams and this positive influence remains across all the leagues. The number of points that each team achieves in the end of the season is influenced by their salary and the wage difference between each club and the club with the highest payroll in each season. Finally, the wage bill and the wage difference of the clubs are individually significant to explain the probability of succeed nationally.

Date of Award	26 May 2020
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Domingos Freitas do Amaral (Supervisor)