The Effects of Home-Grown Rule on Eciency of Sports Teams : Evidence from English Premier League Seungmin Shin Seoul National University College of Law: Seoul National University School of Law Changhee Kim (
[email protected] ) Incheon National University https://orcid.org/0000-0002-6087-3132 Research Keywords: Data envelopment analysis, English premier league, Football, Home-grown regulation, Eciency Posted Date: February 16th, 2021 DOI: https://doi.org/10.21203/rs.3.rs-196964/v1 License: This work is licensed under a Creative Commons Attribution 4.0 International License. Read Full License Page 1/36 Abstract Research question The English Premier League, one of the most successful football league, is on the verge of losing its competitive edge due to Home-grown regulation proposal. This study focuses on the effects of this regulation on football clubs’ nancial and operational eciency. Research methods To accurately measure the effects of these measures, Data Envelopment Analysis (DEA) technique was used to 10 different Premier League Clubs spanning 7 years. Data of 10 clubs that have never been relegated were collected over 7 years. Results and ndings Eciency score spread shows that clubs were seriously affected in eciency in adjacent season after the implementation of the Home-grown regulation. Clubs were nancially impacted due to rising cost of required Home-grown players, further depriving its nancial footholds. Also, ecacy of this regulation was not effective as the Home-grown players did not gain much playing time in the eld. Implications Football Association proposes further strengthening the Home-grown regulation in the future seasons. This study concludes that proposed home-grown regulation will further impact the football clubs nancially as it was evident from the eciency modeling in the study.