Managerial Efficiency in German Top League Soccer: An Econometric Analysis of Club Performances On and Off the Pitch

Markus Kern and Bernd Süssmuth

German Economic Review, 2005, vol. 6, issue 4, 485-506

Abstract: Abstract. This study applies stochastic frontier analytic techniques in the estimation of sporting production functions. As ex‐ante input factors, we use pre‐seasonal estimates of wage bills of players and coaches that are transformed during the production process of a season into ex‐post pecuniary revenues and sporting success. In the case of athletic output we find a robust pattern of technical efficiency over subsequent seasons. Estimates based on economic output, however, do not support an efficiency model. A significant inter‐seasonal change in overall technical productivity rather highlights the economic instability of the German soccer industry.

Date: 2005
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German Economic Review is currently edited by Bernhard Felderer, Joseph F. Francois, Ivo Welch, Urs Schweizer and David E. Wildasin

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