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Legal Restrictions on Buyout Fees: Theory and Evidence from German Soccer Author info | Abstract | Publisher info | Download info | Related research | Statistics Feess, Eberhard (University of Aachen (RWTH))
Frick, Bernd (University of Witten-Herdecke and Institute of Labor Law and Industrial Relations, Trier)
Muehlheusser, Gerd () (University of Bern and IZA Bonn)
We perform a theoretical and empirical analysis of the impact of transfer fee regulations on professional soccer in Europe. Based on a model on the interaction of moral hazard and heterogeneity, we show (i) how the regulations effect contract durations and wages, (ii) that contracting parties have an incentive to agree upon inefficiently long contracts, (iii) how these incentives vary with the legal system, and (iv) how the relationship between contract duration and performance also depends on the legal system. With one exception, all theoretical results are empirically confirmed using a comprehensive data set from the top German Soccer League ("Bundesliga").
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
1180.
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Length: 47 pages
Date of creation: Jun 2004Date of revision:
Handle: RePEc:iza:izadps:dp1180Contact details of provider: Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany Phone: +49 228 3894 223 Fax: +49 228 3894 180 Web page: http://www.iza.org
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Keywords: Labor contracts ; Bosman judgement ; empirical contract theory ; Other versions of this item:
Find related papers by JEL classification: J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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Helmut Dietl & Egon Franck & Markus Lang, 2008.
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