Cost performance of Brazilian soccer clubs: A Bayesian varying efficiency distribution model

• Published in: Economic modelling Vol. 28; no. 6; pp. 2730 - 2735
• Main Authors: Barros, Carlos Pestana, Assaf, A.George, de Araujo, Ari Francisco
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.11.2011; Elsevier Science Ltd
• Subjects: Bayesian analysis; Bayesian method; Bayesian VED model; Brazil; Cost analysis; Cost efficiency; Cost-effectiveness; Economic models; Economics of sport; Efficiency; Football; Professional soccer; Soccer; Studies; Brazil; Brazil; Soccer; L83; C69; Cost efficiency; Bayesian VED model
• ISSN: 0264-9993; 1873-6122
• DOI: 10.1016/j.econmod.2011.08.002

This paper analyzes the cost efficiency of Brazilian first league soccer clubs using a Bayesian Varying Efficiency Distribution (VED) model. We confirm that the model fits the data well with all coefficients correctly signed and in line with the theoretical requirements. From the efficiency results, it was clear that the Brazilian soccer league operates at a lower performance in comparison to other international soccer leagues. Factors which contributed to this finding as well as other policy implications are provided. ►We examine the cost efficiency of Brazilian soccer clubs. ►Data from a balanced panel data from 20 Brazilian soccer clubs are analyzed using a Bayesian VED model. ►We showed that cost efficiency varies significantly among the clubs analyzed. ►The size and location of each club have a significant effect on the cost efficiency of the various clubs.