Paid to play: football club owner ambitions on promotion to the English premier league and impact on the league

Purpose What can be inferred about the financial and sporting ambitions of football club owners when promoted to the English Premier League (EPL)? Does this effect the competitive balance of the league? Do parachute payments effect sporting outcomes in the EPL? Design/methodology/approach The expected financial gain and additional expenditure on talent for clubs promoted to the EPL are calculated and compared to a hypothetical scenario where clubs spend at least the full gain. The league competitive balance is compared to a hypothetical league without newly promoted clubs. Findings More owners are concerned with retaining expected gains than with avoiding relegation. This did not significantly adversely affect competitive balance in the EPL. Clubs promoted without parachute payments were more successful in avoiding relegation from the EPL. Originality/value Owners of clubs promoted to the EPL are less “win oriented” than their financial gain would allow but more successful if not promoted with a parachute payment.