Book Review: Economics, Uncertainty, and European Football, by Loek Groot
AbstractOne of the central particularities in sports leagues is the fact that the clubs compete with each other on the input markets but are obliged to cooperate on the output market (i.e., the league’s games). In order to maximize jointly produced league output, one often hears calls for policy changes to ensure optimal competitive balance in leagues. Supporters of these policy changes often argue that the dominance of one, or a few, teams will lead to unequal revenues across clubs, consolidation of the clubs’ level of relative sporting performance, and thus to a helix of sporting and economic success. At the end of this process stands a loss in attractiveness of the league and hence a loss of revenues for all clubs and the league as a whole. In the extreme case, the existence of the league will be endangered. In order to avoid this spiral, many sports leagues have created rules and instruments to provide for financial and/or competitive balance across individual teams. These include the sharing of revenues, reserve clauses and/or drafting systems, and salary caps with the aim of maintaining the uncertainty of outcome that is seen to be substantial for fan interest.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Fitness Information Technology in its journal International Journal of Sport Finance.
Volume (Year): 3 (2008)
Issue (Month): 3 (August)
Contact details of provider:
Web page: http://www.fitinfotech.com/
Find related papers by JEL classification:
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Victor Matheson).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.