Performance and revenue in professional league football: evidence from Granger causality tests
AbstractUsing a dataset comprising annual performance (measured by final league position) and gate revenue for 77 Football League clubs which maintained unbroken league membership between 1946 and 1994, the relationship between performance and revenue is investigated using cointegration and causality tests. A cointegrating relationship between performance and revenue is established in only 10 cases out of 77, although it is argued that some caution is required in interpreting these results, due to the low power of the relevant tests in relatively small samples. In Granger causality tests, more evidence is found of causality running from lagged revenue to current performance than of causality in the opposite direction, while the dependence of performance on revenue seems to be greater for the smaller clubs than for the larger. These results lend empirical support to the popular view that, unless checked by mechanisms for revenue redistribution within the league, the natural tendency is for success to become concentrated increasingly among a small group of elite, wealthy clubs.
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.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 30 (1998)
Issue (Month): 12 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEC20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Leif Brandes & Egon Franck, 2005.
"Who made Who? An Empirical Analysis of Competitive Balance in European Soccer Leagues,"
0041, University of Zurich, Institute for Strategy and Business Economics (ISU), revised 2006.
- Lief Brandes & Egon Franck, 2007. "Who Made Who – An Empirical Analysis of Competitive Balance in European Soccer Leagues," Eastern Economic Journal, Eastern Economic Association, vol. 33(3), pages 379-403, Summer.
- Leif Brandes & Egon Franck, 2005. "Who made Who? An Empirical Analysis of Competitive Balance in European Soccer Leagues," Working Papers 0004, University of Zurich, Center for Research in Sports Administration (CRSA), revised 2006.
- Leitão, João, 2012. "Regulation and football brand: Can we talk about a Taylor Effect on the performances of the Red Devils?," Edition HWWI: Chapters, in: Zur Ökonomik von Spitzenleistungen im internationalen Sport, pages 49-71 Hamburg Institute of International Economics (HWWI).
- Leitão, João, 2007. "The Taylor Effect on the Performances of the Red Devils’ Football Brand," MPRA Paper 3244, University Library of Munich, Germany.
- Francisco Gonzalez-Gomez & Andres J. Picazo-Tadeo, 2010.
"Can We Be Satisfied With Our Football Team? Evidence From Spanish Professional Football,"
Journal of Sports Economics,
, vol. 11(4), pages 418-442, August.
- Francisco González Gómez & Andrés J. Picazo Tadeo, 2008. "Can we be satisfied with our football team? Evidence from spanish professional football," ThE Papers 08/11, Department of Economic Theory and Economic History of the University of Granada..
- Torgler, Benno & Schmidt, Sascha L & Frey, Bruno S., 2006.
"The Power of Positional Concerns: A Panel Analysis,"
Berkeley Olin Program in Law & Economics, Working Paper Series
qt1z14v7zt, Berkeley Olin Program in Law & Economics.
- Benno Torgler & Sascha L. Schmidt & Bruno S. Frey, 2007. "The Power of Positional Concerns: A Panel Analysis," NCER Working Paper Series 11, National Centre for Econometric Research.
- Benno Torgler & Sascha L. Schmidt & Bruno S. Frey, 2007. "The Power of Positional Concerns: A Panel Analysis," School of Economics and Finance Discussion Papers and Working Papers Series 212, School of Economics and Finance, Queensland University of Technology.
- Benno Torgler & Sascha L. Schmidt & Bruno S. Frey, 2006. "The Power of Positional Concerns: A Panel Analysis," CREMA Working Paper Series 2006-19, Center for Research in Economics, Management and the Arts (CREMA).
- Paresh Kumar Narayan & Russell Smyth, 2003. "Attendance and pricing at sporting events: empirical results from Granger Causality Tests for the Melbourne Cup," Applied Economics, Taylor & Francis Journals, vol. 35(15), pages 1649-1657.
- Antonio Samagaio & Eduardo Couto & Jorge Caiado, 2009. "Sporting, financial and stock market performance in English football: an empirical analysis of structural relationships," CEMAPRE Working Papers 0906, Centre for Applied Mathematics and Economics (CEMAPRE), School of Economics and Management (ISEG), Technical University of Lisbon.
- Stephen Dobson & John Goddard & John Wilson, 2001. "League Structure and Match Attendances in English Rugby League," International Review of Applied Economics, Taylor & Francis Journals, vol. 15(3), pages 335-351.
- Ira Horowitz, 2007. "If you play well they will come-and vice versa: bidirectional causality in major-league baseball," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 93-105.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.