Wage expenditures and sporting success: An analysis of Norwegian and Swedish football 2010-2013

Abstract

This study examines the relationship between wage expenditures and sporting success in Norwegian and Swedish football. While previous studies have shown a strong correlation between wage expenditures and sporting success, some question whether there is a correlation between what football players earn and their performance on the football pitch. In this study, we use data from 44 Norwegian and Swedish football clubs over a four-year-period from 2010 to 2013. We find a significant correlation between wage expenditures and sporting success measured in terms of final league standing and results in cup competitions. We also find a significant correlation between wage expenditures and spectator attendance. There are also some differences across the countries. For example, wage expenditures have stronger explanatory power in Sweden than in Norway. We discuss possible explanations for these differences.