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Senior Theses

2022

Granger Causality

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The Impact Of Transfer Spending In Expediting Improvement Of On-Field Performance Of English Premier League Clubs, Brendan Merten Apr 2022

The Impact Of Transfer Spending In Expediting Improvement Of On-Field Performance Of English Premier League Clubs, Brendan Merten

Senior Theses

This thesis analyzes transfer spending and performance data from English Premier League football clubs participating in the 1992-2021 seasons of the English Premier League using regression analysis and Granger causality analysis. The analysis attempts to extend existing research that indicates a significant causal relationship between transfer spending and performance. I then speak to the sustainability of transfer spending necessary to improve performance over a specified length of time. Further discussion considers implications of Financial Fair Play regulations and explores relevant case studies of Blackburn Rovers, Manchester City, Chelsea, Leicester City, and Newcastle United.