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Firm Survival in Professional Sports

Author

Listed:
  • Harald Oberhofer
  • Tassilo Philippovich
  • Hannes Winner

Abstract

This article investigates firm survival in professional football, arguing that the relegation and promotion system in football leagues is very similar to firm exits and entries in traditional goods and service markets. Empirically, we use a data set containing information on how long football teams have participated in the German Premier League over the playing seasons 1981-1982 to 2009-2010. Controlling for club- and market-specific characteristics, such as a team’s budget or its squad composition, our findings suggest that younger firms are systematically exposed to higher risks of market exit in professional football, which is often referred to as liability of newness in organizational ecology.

Suggested Citation

  • Harald Oberhofer & Tassilo Philippovich & Hannes Winner, 2015. "Firm Survival in Professional Sports," Journal of Sports Economics, , vol. 16(1), pages 59-85, January.
    • Handle: RePEc:sae:jospec:v:16:y:2015:i:1:p:59-85
    DOI: 10.1177/1527002512462582
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    References listed on IDEAS

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    2. Schöber, Timo & Stadtmann, Georg & Parshakov, Petr, 2021. "Survival of professional CS:GO teams: What matters? A research note," Discussion Papers 425, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.

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