Honors Program
University Honors
Date of Award
5-2018
Thesis Professor(s)
Gary Burkette
Thesis Professor Department
Accountancy
Thesis Reader(s)
Michelle Freeman, Jon Smith
Abstract
This thesis serves as an examination of the relationship between players’ salaries and teams’ revenues for the American Major League Soccer and English Premier League. Historically, the salary cap imposed on teams playing in Major League Soccer has been heavily criticized of holding the league back. Comparisons have been made to leagues such as the English Premier League which assert that the limitation keeping Major League Soccer from attaining similar success is the presence of the salary cap. Data was gathered from the twenty teams in Major League Soccer and the twenty teams in the English Premier League for each of two seasons, those played in 2015 and 2016. A regression analysis was performed with a binary dummy variable which served to indicate the presence of a salary cap. At an α of .05, the presence of a salary cap was found to be statistically significantly related to the revenues earned by teams. Additionally, at an α of .05, there was strong evidence to indicate a relationship between total paid salaries and total revenues earned by teams. This study serves to show one viable path by which financially underperforming teams can begin to increase their revenue streams.
Publisher
East Tennessee State University
Document Type
Honors Thesis - Open Access
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.
Recommended Citation
Watson, Tyler, "The Effects of Players’ Salary Level and a Salary Cap on the Revenue of Professional Soccer Teams in the United States and England" (2018). Undergraduate Honors Theses. Paper 455. https://dc.etsu.edu/honors/455
Copyright
Copyright by the authors.
Included in
Accounting Commons, Finance and Financial Management Commons, Sports Management Commons, Sports Studies Commons