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Income Inequality, Competitive Balance and the Attractiveness of Team Sports: Some Evidence and a Natural Experiment from English Soccer

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Szymanski, Stefan

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Abstract

This paper examines the relationship between financial inequality, competitive balance and attendance at English professional league soccer. It shows that while financial inequality among the clubs has increased, competitive balance has remained relatively stable and match attendance appears unrelated to competitive balance. A clearer test of the relationship is suggested by comparison with FA Cup matches. Because income inequality is primarily driven by inter- rather than intra-divisional inequality, the FA Cup has been a much more unbalanced competition than the divisional championships. Attendance at FA Cup matches relative to the corresponding league matches has fallen over the last twenty years.

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Publisher Info
Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 111 (2001)
Issue (Month): 469 (February)
Pages: F69-84
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Handle: RePEc:ecj:econjl:v:111:y:2001:i:469:p:f69-84

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  1. Barajas, Angel & Crolley, Liz, 2005. "A model to explain support in Spanish football," MPRA Paper 3235, University Library of Munich, Germany. [Downloadable!]
  2. Allen R. Sanderson & John J. Siegfried, 2003. "Thinking About Competitive Balance," Working Papers 0318, Department of Economics, Vanderbilt University. [Downloadable!]
  3. Jan Vecer & Tomoyuki Ichiba & Mladen Laudanovic, 2007. "On Probabilistic Excitement of Sports Games," Journal of Quantitative Analysis in Sports, Berkeley Electronic Press, vol. 3(3). [Downloadable!]
  4. Pedro Garcia-del-Barrio & Francesc Pujol, 2007. "Hidden monopsony rents in winner-take-all markets-sport and economic contribution of Spanish soccer players," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 57-70. [Downloadable!]
  5. Ferda Halicioglu, 2005. "Can We Predict The Outcome Of The International Football Tournaments : The Case Of Euro 2000?," Microeconomics 0503008, EconWPA. [Downloadable!]
  6. Stephen Shmanske, 2007. "Consistency or Heroics: Skewness, Performance, and Earnings on the PGA TOUR," Atlantic Economic Journal, International Atlantic Economic Society, vol. 35(4), pages 463-471, December. [Downloadable!] (restricted)
  7. Synthia Kariny Silva de Santana & Alexandre Stamford da Silva, 2009. "The determinants of demand in football matches during the 2007 Brazilian Championship," Working Papers 0906, International Association of Sports Economists. [Downloadable!]
  8. Loek Groot, 2005. "European football: Back to the 1950s," Industrial Organization 0505003, EconWPA. [Downloadable!]
  9. Ferda HALICIOGLU, 2005. "Forecasting the Professional Team Sporting Events: Evidence from Euro 2000 and 2004 Football Tournaments," Industrial Organization 0508001, EconWPA. [Downloadable!]
  10. Raul Caruso, 2008. "Il calcio tra mercato, relazioni e coercizione," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, vol. 4(1), pages 71-88, Aprile. [Downloadable!]
  11. Pedro Garcia-del-Barrio & Francesc Pujol, 2004. "Pay and Performance in the Spanish Soccer League: Who Gets the Expected Monopsony Rents?," Faculty Working Papers 05/04, School of Economics and Business Administration, University of Navarra. [Downloadable!]
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