The importance of wages in the EPL

Article at ESPN:

The other lesson is that the side with the next-largest budget after the top four should not lose hope. Arsenal just needed Liverpool to underplay their wage bill for a few years while Wenger steered his side to 70-point seasons, which was enough to maintain the Gunners’ position in the Champions League. Last year, Liverpool didn’t need the good fortune of Manchester United having perhaps the worst points-to-wage-bill season on record, but they could have made the Champions League with a merely good season as well.

For teams on the lower end, the lift is much more strenuous. The following graph of inflation-adjusted wage bills shows just how difficult it is to build a 70-point squad without elite resources.

The Dangers of Manchester City’s Transfer Strategy

SB Nation: Manchester City’s risky business

Following their short decline and the advent of financial fair play regulations, Chelsea changed their transfer strategy drastically. A focus on younger players to both rebuild the squad and to sell to fund other purchases developed. So far, the strategy looks a strong one.

Manchester City’s graph bears some worrying similarities to what Chelsea looked like before the decline. The club is not buying the foundation of a new club in the age 20-22 subset, and their purchasing is focusing even more strongly on the late peak 26-28 age group. While City at first seemed to have learned some of the lessons of Chelsea’s poor spending strategy, their recent acquisitions reflect a new form of risk-taking.

Wage Bills in the English Premier League

Published at the Washington Post.

How Wage Bills Predict Outcomes and Who Does Best with their Money:

But even within a stratified system, better- and worse-run clubs stand out. I did a quick regression based on points and inflation-adjusted payroll to find the expected points for a club based on its total payroll. This does not include transfer spending, but for most clubs transfer spending tracks with wage bill reasonably well. The results can be seen at the end of the article. A few top clubs stand out. In the scatter plot below, I have marked a few clubs in particular. At the top end, you can see the impressive numbers of Alex Ferguson’s Manchester United and David Moyes’s Everton teams. At the bottom end, Newcastle United shows up as a consistent underperformer regardless of who has been in charge.

On Payroll and Depth during the Holiday Fixtures

Published at ESPN.

How Payroll Predicts Holiday Outcomes in the EPL:

Clubs with wage bills among the top four in the league tend to do very well no matter the circumstance, but particularly at the New Year. They average about 2.0 points per match over most of the season; during the holidays, that rate jumps 10 percent to 2.2 points per match. This means that every festive period, one of the four richest clubs wins a match they otherwise would have drawn or lost. Given that the title and fourth place races are often decided by a point or two, those extra points at the holiday can make all the difference.

At the same time, not every high-payroll club sees the benefits of depth every year. If a high-payroll club like Manchester United or Arsenal goes on a run through the winter fixtures, it should not be surprising, but such a run is in no way guaranteed.