The Relationship Between Ownership and English Premier League Players’ Salaries

Abstract

This paper looks into the relationship between professional soccer player wages and ownership characteristics. Previous research has shown that foreign owners invest more in their clubs but has not connected it to individual players’ wages. Previous player compensation models exist but have not incorporated advanced analytics or tied in the concept of MRP. Regression models have been calculated for club output, club revenue, and expected player wage. The expected player wage was then compared to MRP. These were then regressed with ownership characteristics. This paper has found that there is a statistically significant relationship between two ownership characteristics and player wages. In the future, player compensation models should tie in financial aspects to their models