Soccernomics. Simon Kuper

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Soccernomics - Simon  Kuper

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contrast, clubs’ spending on salaries was extremely telling. The size of their wage bills explained a massive 92 per cent of variation in their league positions, if you took each club’s average for the entire period. That correlation shows little sign of going away. We show almost exactly the same result below using data for the Premier League and the Championship for the decade to 2016. In that period, wage spending still explained more than 90 per cent of the variation in league position. It seems that over the long term, high wages help a club much more than do spectacular transfers.

      Obviously we don’t believe that if you took a random bunch of players, and doubled their salaries, they would suddenly play twice as well. It’s not that high pay causes good performance. Rather, we think that high pay attracts good performers. Chelsea can afford to pay Eden Hazard’s wages, whereas Burnley cannot. And if you have Hazard and other good players, you will win lots of matches. Rich clubs pay high salaries to get good players.

      Premier League and Championship teams 2007–2016 performance and wage expenditure

      THE MORE YOU PAY YOUR PLAYERS, THE HIGHER YOU FINISH: 2007–2016

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Club Wage spending relative to the average Average league position
Manchester United 3.40 3
Chelsea 3.97 3
Arsenal 2.92 3
Manchester City 3.13 5
Liverpool 2.74 5
Tottenham Hotspur 1.69 6
Everton 1.28 7
Aston Villa 1.54 12
West Ham United 1.31 14
Stoke City 0.91 14
Newcastle United 1.44 14
Sunderland 1.19 15
West Bromwich Albion 0.79 16
Swansea City 0.75 16
Fulham 1.10 18
Wigan Athletic 0.84 19
Blackburn Rovers 0.87 21
Southampton 0.83 21
Portsmouth 1.47 22
Bournemouth 0.58 22
Bolton Wanderers 0.94 23
Hull City 0.63 24
Norwich City 0.69 24
Birmingham City 0.59 25
Reading 0.66 25
Middlesbrough 0.66 25
Leicester City 0.60 25
Wolverhampton Wanderers 0.53 25
Burnley 0.38 27
Cardiff City 0.50 27
Queens Park Rangers 0.80 27
Brentford 0.28 27
Crystal Palace 0.60 27
Watford 0.41 27
Sheffield United 0.60 28
Brighton & Hove Albion 0.37 29
Derby County 0.42 29
Ipswich Town 0.33 31
Nottingham Forest 0.40 32
Blackpool 0.24 33
Preston North End 0.25 33
Charlton Athletic 0.44 34
Sheffield Wednesday 0.23 34
Leeds United 0.36 34
Bristol City 0.29 34
Plymouth Argyle 0.19 36
Colchester United 0.15 37
Millwall 0.23 37
Huddersfield Town 0.23 38
Coventry City 0.26 39
Barnsley 0.17 40
Rotherham United 0.10