Soccer Clubs and Diminishing Returns: The Case of Paris Saint-Germain
|Title:||Soccer Clubs and Diminishing Returns: The Case of Paris Saint-Germain||Authors:||Hogan, Vincent (Vincent Peter); Massey, Patrick||Permanent link:||http://hdl.handle.net/10197/12225||Date:||Apr-2021||Online since:||2021-05-31T11:56:56Z||Abstract:||Paris Saint-Germain, one of France's top soccer clubs, was bought by Qatar Sports Investments (QSI) in 2011. Since then the club's expenditure has risen precipitously as have its victories. In this paper we ask whether this represents value for money. We find in fact, that the efficiency of PSG did not deteriorate following the takeover. However, while PSG operated close to the production frontier in terms of converting resources to points, it scored vastly more points than was necessary to win the league. We estimate that PSG spent e140m more than was necessary to win the French league in 2016/17. Since 2011, PSG is estimated to have overspent by up to e600m. This expenditure could be thought as being merely the price of creditable performance at a European Level. We show, however, that it has brought less success than would be expected.||Type of material:||Working Paper||Publisher:||University College Dublin. School of Economics||Start page:||1||End page:||24||Series/Report no.:||UCD Centre for Economic Research Working Paper Series; WP2021/11||Copyright (published version):||2021 the Authors||Keywords:||Sports Finance; Productivity||JEL Codes:||Z23; D24||Language:||en||Status of Item:||Peer reviewed||This item is made available under a Creative Commons License:||https://creativecommons.org/licenses/by-nc-nd/3.0/ie/|
|Appears in Collections:||Economics Working Papers & Policy Papers|
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