Effects of incorporating judgments in football club efficiency assessment: a Data Envelopment Analysis approach

Authors

DOI:

https://doi.org/10.5585/exactaep.2021.17546

Keywords:

Efficiency, Data Envelopment Analysis, Judgments, Football clubs.

Abstract

The purpose of this paper is to present a DEA model that incorporates judgments about the importance of inputs and outputs in evaluating the effectiveness of soccer clubs. In the modeling the judgments on the importance of the operational expenses (input) and operational revenues and sports performance (outputs) are incorporated to a classic DEA model. So, this model is applied to evaluate the efficiency of the 20 clubs that participated in the Brazilian Serie A Football Championship in 2016. In addition, it is verified that contextual factors influenced that efficiency. The results revealed that while the classic DEA model identified nine efficient clubs, the proposed model ranked only five. It was also found that clubs with greater assets tended to be less efficient and that the size of the fans present in the stadiums or the history of sports performance did not affect the efficiency of those organizations. It was concluded that the classic DEA models, by ignoring the judgments about the importance of inputs and outputs, overestimate the efficiency scores of clubs and that the proposed model, by preventing low weights from being attributed to important variables, better discriminates efficient clubs.

Downloads

Download data is not yet available.

Author Biographies

Alexandre de Cássio Rodrigues, Universidade FUMEC

Departamento de Administração

Tiago Silveira Gontijo, Universidade FUMEC

Bacharel em Ciências Econômicas (UFV) e em Administração (FUMEC). Mestre e Doutorando em Engenharia de Produção (UFMG).

Carlos Alberto Gonçalves, Universidade Federal de Minas Gerais (UFMG) e Universidade FUMEC.

Doutorado em Administração

Universidade Federal de Minas Gerais – UFMG

Thiago Henrique Martins Pereira, Doutor em Administração, Universidade FUMEC.

Doutor em Administração

Universidade FUMEC.

References

Allen, R., Athanassopoulos, A., Dyson, R. G., & Thanassoulis, E. (1997). Weights restrictions and value judgements in data envelopment analysis: evolution, development and future directions. Annals of operations research, 73, 13-34. https://doi.org/10.1023/A:1018968909638

Arabzad, S. M., Berjis, N., & Shirouyehzad, H. (2018). Ranking World Cup 2014 Football Matches by Data Envelopment Analysis Models with Common Weights. Iranian Journal of Optimization, 10(2), 139-150.

Banker, R. D., Charnes, A., & Cooper, W. W. (1984). Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management science, 30(9), 1078-1092. https://doi.org/10.1287/mnsc.30.9.1078

Barajas, A., Fernández-Jardón, C. M., & Crolley, L. (2005). Does sports performance influence revenues and economic results in Spanish football? http://dx.doi.org/10.2139/ssrn.986365

Bogetoft, P., & Otto, L. (2010). Benchmarking with Dea, Sfa, and R (Vol. 157). Springer Science & Business Media. http://dx.doi.org/10.1007/978-1-4419-7961-2

Borges, G., & Petry, J. (2016). O Impacto do Desempenho do Time na Presença de Torcedores no Estádio de Futebol. PODIUM Sport, Leisure and Tourism Review, 5(3), 60-74.

Brasil. Lei n. 9.615, de 24 de março de 1998 (1998). Institui normas gerais sobre desporto e dá outras providências. Brasília/DF, Diário Oficial da União.

Brasil. Lei n. 10.672, de 15 de maio de 2003 (2003). Altera dispositivos da Lei no 9.615, de 24 de março de 1998, e dá outras providências. Brasília/DF, Diário Oficial da União.

Brasil. Lei n. 13.155, de 04 de agosto de 2015 (2015). Estabelece princípios e práticas de responsabilidade fiscal e financeira e de gestão transparente e democrática para entidades desportivas profissionais de futebol. Brasília/DF, Diário Oficial da União.

Camioto, F. D. C., Rebelatto, D. A. D. N., & Rocha, R. T. (2016). Energy efficiency analysis of BRICS countries: a study using Data Envelopment Analysis. Gestão & Produção, 23(1), 192-203. http://dx.doi.org/10.1590/0104-530X1567-13

Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the efficiency of decision making units. European journal of operational research, 2(6), 429-444. https://doi.org/10.1016/0377-2217(78)90138-8

Dantas, M. G., & Boente, D. R. (2012). A utilização da análise envoltória de dados na medição de eficiência dos clubes brasileiros de futebol. Contabilidade Vista & Revista, 23(2), 101-130.

Dantas, M. G., Machado, M. A. V., & Macedo, M. A. (2015). Fatores determinantes da eficiência dos clubes de futebol do Brasil. Advances in Scientific and Applied Accounting, 8(1), 113-132. https://doi.org/10.14392/ASAA.2015080106

Rodrigues, A. C., Gonçalves, C. A., & Gontijo, T. S. (2019). A two-stage DEA model to evaluate the efficiency of countries at the Rio 2016 Olympic Games''. Economics Bulletin, 39(2), 1538-1545.

Emrouznejad, A., & Yang, G. L. (2018). A survey and analysis of the first 40 years of scholarly literature in DEA: 1978–2016. Socio-Economic Planning Sciences, 61, 4-8. https://doi.org/10.1016/j.seps.2017.01.008

Espitia‐Escuer, M., & García‐Cebrián, L. I. (2010). Measurement of the efficiency of football teams in the Champions League. Managerial and Decision Economics, 31(6), 373-386. https://doi.org/10.1002/mde.1491

Espitia Escuer, M. A., & García Cebrián, L. I. (2019). Procedure for Implementing Data Envelopment Analysis as a Methodology for Measuring Efficiency. Application to Football Teams. Application to Football Teams (June 27, 2019).

Färe, R., Grosskopf, S., Karagiannis, G., & Margaritis, D. (2017). Data envelopment analysis and its related linear programming models. Annals of Operations Research, 250(1), 37-43. https://doi.org/10.1007/s10479-015-2042-y

Ferraz, D., Moralles, H. F., Campoli, J. S., Oliveira, F. C. R. D., & Rebelatto, D. A. D. N. (2018). Complexidade Econômica e Desenvolvimento Humano: uma análise a partir do DEA. Gestão & Produção, 25(4), 839-853. http://dx.doi.org/10.1590/0104-530x3925-18

Ferreira, C. M. D., Gomes, A. P. G. (2009). Introdução à análise envoltória de dados: teoria, modelos e aplicações. UFV.

Freitas, M. M. D., Farias, R. A. S., & Flach, L. (2017). Efficiency determinants in Brazilian football clubs. Brazilian Business Review, 1-23.

Glauner, F. (2018). Innovation, business models, and catastrophe: Reframing the mental model for innovation management. In Innovation Management and Corporate Social Responsibility (pp. 133-157). Springer, Cham. https://doi.org/10.1007/978-3-319-93629-1_7

Greene, W. H. (2008). The econometric approach to efficiency analysis. The measurement of productive efficiency and productivity growth, 1(1), 92-250.

Guzmán, I. (2006). Measuring efficiency and sustainable growth in Spanish football teams. European sport management quarterly, 6(3), 267-287. https://doi.org/10.1080/16184740601095040

Hamidi, M., Sajadi, H., & Soleimani-Damaneh, J. (2011). Evaluating the performance of Iranian football teams utilizing linear programming. American Journal of Operations Research, 1(02), 65. https://doi.org/10.4236/ajor.2011.12010

Itaú, J. (2019, December 17). Análise econômico-financeira dos clubes de futebol brasileiros [Web page]. Retrieved from https://www.itau.com.br/_arquivosestaticos/itauBBA

Joro, T., & Korhonen, P. (2015). Extension of data envelopment analysis with preference information. Springer. https://doi.org/10.1007/978-1-4899-7528-7

Kern, A., Schwarzmann, M., & Wiedenegger, A. (2012). Measuring the efficiency of English Premier League football: A two-stage data envelopment analysis approach. Sport, Business and Management: an International Journal, 2(3), 177-195. https://doi.org/10.1108/20426781211261502

Levene, H. (1960). Levene test for equality of variances. Contributions to probability and statistics, 278-292.

Li, Y., Lei, X., Dai, Q., & Liang, L. (2015). Performance evaluation of participating nations at the 2012 London Summer Olympics by a two-stage data envelopment analysis. European Journal of Operational Research, 243(3), 964-973. https://doi.org/10.1016/j.ejor.2014.12.032

Liu, W., Sharp, J., & Wu, Z. (2006). Preference, production and performance in data envelopment analysis. Annals of Operations Research, 145(1), 105-127. https://doi.org/10.1007/s10479-006-0042-7

Marotz, D. P., Marquezan, L. H. F., & Diehl, C. A. (2020). Clubes de futebol: relações entre investimento, desempenho e adesão ao PROFUT. Revista Contemporânea de Contabilidade, 17(43), 3-18. https://doi.org/10.5007/2175-8069.2020v17n43p3

Meza, L. A., Biondi Neto, L., Mello, J. C. C. B. S., & Gomes, E. G. (2005). ISYDS-Integrated System for Decision Support (SIAD-Sistema Integrado de Apoio à Decisão): a software package for data envelopment analysis model. Pesquisa Operacional, 25(3), 493-503. http://dx.doi.org/10.1590/S0101-74382005000300011

McDonald, J. (2009). Using least squares and tobit in second stage DEA efficiency analyses. European journal of operational research, 197(2), 792-798. https://doi.org/10.1016/j.ejor.2008.07.039

Mixon Jr, J. W., & Smith, R. J. (2006). Teaching undergraduate econometrics with GRETL. Journal of Applied Econometrics, 21(7), 1103-1107. https://doi.org/10.1002/jae.927

Nascimento, J. C. H. B., Nossa, V., Bernardes, J. R., & de Sousa, W. D. (2015). A eficiência dos maiores clubes de futebol brasileiros: evidências de uma análise longitudinal no período de 2006 a 2011. Contabilidade Vista & Revista, 26(2), 137-161.

Pereira, A. G. C., Júnior, A. C. B., Kronbauer, C. A., & Abrantes, L. A. (2015). Eficiência técnica e desempenho econômico-financeiro dos clubes de futebol brasileiros. Revista Reuna, 20(2), 115-138.

Périco, A. E., Santana, N. B., & Rebelatto, D. A. D. N. (2017). Eficiência dos aeroportos internacionais brasileiros: uma análise envoltória de dados com bootstrap. Gestão & Produção, 24(2), 370-381. http://dx.doi.org/10.1590/0104-530x1810-15

Pestana Barros, C., Assaf, A., & Sá-Earp, F. (2010). Brazilian football league technical efficiency: a Simar and Wilson approach. Journal of Sports Economics, 11(6), 641-651. https://doi.org/10.1177/1527002509357530

Plumley, D., Wilson, R., & Ramchandani, G. (2017). Towards a model for measuring holistic performance of professional Football clubs. Soccer & Society, 18(1), 16-29. https://doi.org/10.1080/14660970.2014.980737

Pyatunin, A. V., Vishnyakova, A. B., Sherstneva, N. L., Mironova, S. P., Dneprov, S. A., & Grabozdin, Y. P. (2016). The Economic Efficiency of European Football Clubs--Data Envelopment Analysis (DEA) Approach. International Journal of Environmental and Science Education, 11(15), 7515-7534.

Roll, Y., Cook, W. D., & Golany, B. (1991). Controlling factor weights in data envelopment analysis. IIE transactions, 23(1), 2-9. https://doi.org/10.1080/07408179108963835

Rashidi, K., & Cullinane, K. (2019). Evaluating the sustainability of national logistics performance using Data Envelopment Analysis. Transport Policy, 74, 35-46. https://doi.org/10.1016/j.tranpol.2018.11.014

Shih, C. P., & Putri, D. U. (2018). Measuring the Effect of Team Characteristics, Team Effectiveness on Organizational Performance, Organizational Survival and Competitiveness: A Case Study of an Indonesian NGO, Yayasan Cinta Anak Bangsa by using PLS Method. In Operations and Service Management: Concepts, Methodologies, Tools, and Applications (pp. 1623-1636). IGI Global. https://doi.org/10.4018/978-1-5225-3909-4.ch073

Thanassoulis, E., Portela, M. C., & Allen, R. (2004). Incorporating value judgments in DEA. In Handbook on data envelopment analysis (pp. 99-138). Springer, Boston, MA. https://doi.org/10.1007/1-4020-7798-X_4

Tran, T. H., Mao, Y., Nathanail, P., Siebers, P. O., & Robinson, D. (2019). Integrating slacks-based measure of efficiency and super-efficiency in data envelopment analysis. Omega, 85, 156-165. https://doi.org/10.1016/j.omega.2018.06.008

Valério, R. P., & Angulo-Meza, L. I. D. I. A. (2013). A data envelopment analysis evaluation and financial resources reallocation for Brazilian olympic sports. WSEAS Transactions on Systems, 12(12), 627-636.

Zhou, H., Yang, Y., Chen, Y., & Zhu, J. (2018). Data envelopment analysis application in sustainability: The origins, development and future directions. European Journal of Operational Research, 264(1), 1-16. https://doi.org/10.1016/j.ejor.2017.06.023

Zhu, J. (2014). Quantitative models for performance evaluation and benchmarking: data envelopment analysis with spreadsheets (Vol. 213). Springer. https://doi.org/10.1007/978-3-319-06647-9

Published

2022-01-21

How to Cite

Rodrigues, A. de C., Gontijo, T. S., Gonçalves, C. A., & Pereira, T. H. M. (2022). Effects of incorporating judgments in football club efficiency assessment: a Data Envelopment Analysis approach. Exacta, 20(1), 234–251. https://doi.org/10.5585/exactaep.2021.17546

Most read articles by the same author(s)