The analysis of the relationship between the football teams and the super league success and market value

Football, that has existed since the 19th Century, is not only a branch of professional sports but also a decisive industry that shapes economies of countries. Football has become a global sector as well as a form of professional sports in Turkey as it has in other parts of the world. Especially, in the recent years, football has acquired a sense of importance in Europe and in the whole world by means of success in sports and economic development. The main reason of this elevation in importance is the considerable success of Super League football teams. On the other hand, at the backgroun of this success lies the financial robustness and athletic acomplishment of the football clubs. Brand items, stock market income, publication income, advertisement income, sponsorhip, brand value and transfer payments that constitute the main elements of the budget of football, designate the economic wellfare of sports clubs and effect the market value of those clubs. Unlike the existing literature on the topic, this thesis uses the market value that is designated by the value of football players and the points gained in the super league as variables; and analyzes the short-term and long-term interactions. The data used is acquired from Transfermarkt GmbH & Co. KG on the years 2011-2017, on the eight football teams that were in the super league in that period. In this study, whether the series are fixed is tested by the LLC unit root test, and it is proven that the series are fixed on the level. The long-term interaction is proven by the Pedroni and Kao cointegration test; the corelation between the market value and the super league success is proven through panel ARDL method. The causality between these two variables is analyzed and put forth via Granger analysis. The short-term correction model factor is negative and meaningful statistically. This result proves that the unstability observed in the short-term is neutralized in the long-term. To sum up, in the short-term it is observed that the Super League score and the market value do not have a reciprocal affect, and yet, the data indicates a strong and positive corelation in the long-term as expected. In Turkey, by increasing the investment and support of the football clubs on the infrastructure, and by achieving this support through local resources, one of the most considerable expenses of a football club, that is importing players, will be eliminated.