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Competitive Balance:Time Series Lessons from the English Premier League

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Author Info

  • Young Hoon Lee

    ()
    (Department of Economics, Sogang University, Seoul)

  • Rodney Fort

    (Sport Management, University of Michigan)

Abstract

Structural break points in the First Division/English Premier League time series of competitive balance identify an Early Period, a Pre-World War II Period, a Post-War Period, and a Modern Period. The Early Period corresponds to technology diffusion (defense and tactics) along with important economic structural imposition by leagues. The war periods are common to many time series. The Modern Period¡¯s sharp decline in balance corresponds to the newest version of the Champions League in 1994/1995, increased revenue inequality, and the Bosman Ruling of 1995. Suggestions for future research are many.

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Bibliographic Info

Paper provided by Research Institute for Market Economy, Sogang University in its series Working Papers with number 1102.

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Length: 32 pages
Date of creation: Jun 2011
Date of revision: Jun 2011
Handle: RePEc:sgo:wpaper:1102

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Related research

Keywords: competitive balance; break point analysis; the invariance principle;

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References

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  1. BAI, Jushan & PERRON, Pierre, 1998. "Computation and Analysis of Multiple Structural-Change Models," Cahiers de recherche 9807, Universite de Montreal, Departement de sciences economiques.
  2. Stefan Szymanski, 2003. "The Economic Design of Sporting Contests," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1137-1187, December.
  3. J. Colin H. Jones & John A. Schofield & David E.A. Giles, 1999. "Our Fans in the North: The Demand for British Rugby League," Econometrics Working Papers 9902, Department of Economics, University of Victoria.
  4. Young Hoon Lee, 2009. "The Impact of Postseason Restructuring on the Competitive Balance and Fan Demand in Major League Baseball," Working Papers 0901, Research Institute for Market Economy, Sogang University, revised 2009.
  5. Jushan Bai & Pierre Perron, 1998. "Estimating and Testing Linear Models with Multiple Structural Changes," Econometrica, Econometric Society, vol. 66(1), pages 47-78, January.
  6. Ruud Koning, 2009. "Sport and Measurement of Competition," De Economist, Springer, vol. 157(2), pages 229-249, June.
  7. Perron, Pierre, 1989. "The Great Crash, the Oil Price Shock, and the Unit Root Hypothesis," Econometrica, Econometric Society, vol. 57(6), pages 1361-1401, November.
  8. John Vrooman, 2009. "Theory of the Perfect Game: Competitive Balance in Monopoly Sports Leagues," Review of Industrial Organization, Springer, vol. 34(1), pages 5-44, February.
  9. P. Dorian Owen, 2009. "Limitations of the relative standard deviation of win percentages for measuring competitive balance in sports leagues," Working Papers 0908, University of Otago, Department of Economics, revised Mar 2010.
  10. Rodney Fort & Young Hoon Lee, 2007. "Structural Change, Competitive Balance, And The Rest Of The Major Leagues," Economic Inquiry, Western Economic Association International, vol. 45(3), pages 519-532, 07.
  11. Rodney Fort & James Quirk, 1995. "Cross-subsidization, Incentives, and Outcomes in Professional Team Sports Leagues," Journal of Economic Literature, American Economic Association, vol. 33(3), pages 1265-1299, September.
  12. John Vrooman, 2007. "Theory Of The Beautiful Game: The Unification Of European Football," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(3), pages 314-354, 07.
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