Can Money Buy Happiness in Soccer?
It is no surprise that Barcelona, Real Madrid, Bayern Munich, Paris Saint-German, Manchester City, Liverpool and Juventus have won so many titles recently. These juggernauts have spent big to have world-class players in their lineups and outclass lesser-known teams.
As the richest teams spend the big bucks to acquire and retain world-class players, it becomes more and more difficult for less fortunate teams to be competitive. That being said, how strong is the correlation between money and performance in soccer? Can teams compete at the top level on a small budget?
We will take a closer look at Europe's top leagues this season in order to answer these questions.
How wide is the gap between the richest soccer clubs and their less affluent competitors?
This histogram shows the distribution of market value among all teams from Europe’s big five leagues — the Premier League, La Liga, Serie A, Bundesliga and Ligue 1. The graph clearly shows the huge financial gap between the most valuable teams and their competitors. While there are only a few teams whose market value exceeds € 600 million, the majority of teams fall within the 0–200 million range.
This inequality can also be observed in these facts about Europe’s top 5 leagues.
In Ligue 1, Paris Saint German’s market value (€844 million) is higher than the combined market value of 12 teams (€785 million) — St. Etienne, Nantes, Montpellier, Strasbourg, Reims, Toulouse, Angers, Amiens, Metz, Stade Brestois 29, Nimes, and Dijon.
In La Liga, the combined market value of Real Madrid, Barcelona and Atletico Madrid is €2.45 billion. The combined market value of the other 17 teams is €2.64 billion.
In the Premier League, the richest team is Manchester City, whose market value is €1.02 billion. Manchester City winger Raheem Sterling is valued at €128 million. Sheffield United has the lowest budget, with a market value of €131 million.
In Serie A, the most affluent club is Juventus, whose market value is €615 million, almost 14 times higher than Lecce’s market value (€ 44 million).
In the Bundesliga, Bayern Munich’s market value is 28 times higher than Paderborn’s market value (€757 million vs. €27 million).
With such a wide gap between rich and poor, is it possible to keep a level playing field?
Can underfunded underdogs beat the odds and outmaneuver the most affluent teams?
With the exception of Leicester’s run to the 2015–16 Premier League title, the most affluent teams have dominated the most important European leagues. There’s no denying that there is a correlation between market value and team performance. That being said, how strong is this correlation?
This graph shows the relationship between market value and overall team performance this season in Europe’s top 5 leagues. The variable Y represents the percentage of points won by each team during the season (1.0 = 100%). Teams with the highest market value tend to be closer to the top.
The graph suggests a somewhat strong correlation between market value and performance. In general, richer teams tend to outperform teams with a lower market value. Taking a closer look at graphs describing each individual league can give us a more accurate depiction and help us identify outliers.
In France, there is a clear correlation between market value and team performance. Paris Saint German, which is by far the team with the highest market value, has won more than 80% of the points.
Paris Saint German has once again met little resistance on their way to their 8th Ligue 1 title in 9 years.
In the Bundesliga, there is also a somewhat strong relationship between money and performance. The richest team, Bayern Munich, leads the league, followed by the other top highest-earning teams, Borussia Dortmund, RB Leipzig, Borussia Mönchengladbach, and Bayer Leverkusen. It 's worth noting that Bayern Munich has won 7 Bundesliga titles in a row.
In Spain, not surprisingly, the most-valuable teams, Barcelona and Real Madrid, are far ahead of their competitors this season.
These two giants have won 14 La Liga titles over the last 15 years — Barcelona (10), Real Madrid (4), and Atletico Madrid (1).
In the Premier League, Liverpool's record-breaking performance falls far from the regression line. The Reds exceeded expectations and outperformed Manchester City, which boasts the highest market value in Europe. It is worth noting that the Reds are the current Champions League winners, with the second highest market value in Europe. Although their impressive performance is off the charts, we shouldn't be surprised by their title run.
In Italy, it is possible to identify some outliers. It is no surprise that Juventus leads the league. They are the richest team in the league (€614.70 million) and they have been the most dominant team in Italy over the past 10 years, having won 8 back-to-back Serie A titles. However, this season's biggest threat to their dominance is Lazio, whose market value is €298.73 million. Lazio is only one point behind Juventus (62 vs. 63), but has scored more times (60 vs. 50) and allowed fewer goals (24 vs. 24).
By contrast, even with the third highest market value (€526.60 million), Napoli has underperformed, failing to compete for the title with a .500 record.
These examples show us that the most valuable teams are still ahead of their competitors, but Lazio is defying the odds and challenging Juventus' reign.
Only time will tell if Lazio will be able to overcome all the adversities and topple the mighty Juventus. Regardless of the outcome, the widening gap between rich and poor has made it more and more difficult for teams to defy all the odds and win on a tight budget.
