IDEAS home Printed from https://ideas.repec.org/a/ete/revbec/20090404.html

The Consequences of an Open Labour Market in Separated Product Markets in European Professional Football

Author

Listed:
  • Trudo Dejonghe
  • Wim Van Opstal

Abstract

Ever since the Bosman case opened the labour market for players in European professional football, competitive balance has reduced in favour of the Big 5 leagues (England, Spain, Italy, Germany and France) and more specific in England, Spain and Italy. In this article we show that changing structures towards an open labour market in separated product markets resulted in a migration of player talents towards the major leagues and teams and in a competitive disadvantage for the smaller market leagues and their teams. Next to a theoretical argumentation, we provide some empirical evidence and assess future options for the structure of European professional football.

Suggested Citation

  • Trudo Dejonghe & Wim Van Opstal, 2009. "The Consequences of an Open Labour Market in Separated Product Markets in European Professional Football," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business (FEB), Review of Business and Economic Literature, vol. 0(4), pages 489-511.
    • Handle: RePEc:ete:revbec:20090404
    as

    Download full text from publisher

    File URL: https://lirias.kuleuven.be/bitstream/123456789/339664/1/Consequences+of+an+Open+Labour+Market.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Stefan Szymanski, 2010. "The Champions League and the Coase Theorem," Palgrave Macmillan Books, in: Football Economics and Policy, chapter 10, pages 202-225, Palgrave Macmillan.
    2. Christophe Durand & Loïc Ravenel & Emmanuel Bayle, 2005. "The strategic and political consequences of using demographic criteria for the organization of European leagues," Post-Print halshs-02110668, HAL.
    3. Spiros Bougheas & Paul Downward, 2003. "The Economics of Professional Sports Leagues," Journal of Sports Economics, , vol. 4(2), pages 87-107, May.
    4. El-Hodiri, Mohamed & Quirk, James, 1971. "An Economic Model of a Professional Sports League," Journal of Political Economy, University of Chicago Press, vol. 79(6), pages 1302-1319, Nov.-Dec..
    5. Simon Rottenberg, 1956. "The Baseball Players' Labor Market," Journal of Political Economy, University of Chicago Press, vol. 64(3), pages 242-242.
    6. Stephen Hall & Stefan Szymanski & Andrew S. Zimbalist, 2002. "Testing Causality Between Team Performance and Payroll," Journal of Sports Economics, , vol. 3(2), pages 149-168, May.
    7. Thomas Hoehn & Stefan Szymanski, 2010. "The Americanization of European football," Palgrave Macmillan Books, in: Football Economics and Policy, chapter 3, pages 52-96, Palgrave Macmillan.
    8. Haan, Marco & Koning, Ruud H. & Witteloostuijn, Arjen van, 2002. "Market forces in European soccer," Research Report 02F18, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    9. Stefan Kesenne, 2007. "The Peculiar International Economics Of Professional Football In Europe," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(3), pages 388-399, July.
    10. repec:dgr:rugccs:200211 is not listed on IDEAS
    11. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    12. Umberto Lago & Rob Simmons & Stefan Szymanski, 2006. "The Financial Crisis in European Football," Journal of Sports Economics, , vol. 7(1), pages 3-12, February.
    13. Alessandro Baroncelli & Umberto Lago, 2006. "Italian Football," Journal of Sports Economics, , vol. 7(1), pages 13-28, February.
    14. Thomas Ericson, 2000. "The Bosman Case," Journal of Sports Economics, , vol. 1(3), pages 203-218, August.
    15. repec:dgr:rugsom:02f18 is not listed on IDEAS
    16. Trudo Dejonghe & Hans Vandeweghe, 2006. "Belgian Football," Journal of Sports Economics, , vol. 7(1), pages 105-113, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jeroen Schokkaert & Johan Swinnen, 2016. "Uncertainty of Outcome Is Higher in the Champions League Than in the European Cup," Journal of Sports Economics, , vol. 17(2), pages 115-147, February.
    2. Andrews, Matt & Harrington, Peter, 2016. "Off Pitch: Football's Financial Integrity Weaknesses, and How to Strengthen Them," Working Paper Series 16-009, Harvard University, John F. Kennedy School of Government.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Trudo Dejonghe & Wim Van Opstal, 2010. "Competitive balance between national leagues in European football after the Bosman Case," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, vol. 6(2), pages 41-61, Settembre.
    2. Trudo Dejonghe & Wim Van Opstal, 2008. "The consequences of an open labour market in a closed product market in the economic environment of European professional football," Working Papers 0830, International Association of Sports Economists;North American Association of Sports Economists.
    3. Wladimir Andreff, 2009. "Équilibre compétitif et contrainte budgétaire dans une ligue de sport professionnel," Revue économique, Presses de Sciences-Po, vol. 60(3), pages 591-633.
    4. Geoffrey N Tuck & Athol R Whitten, 2013. "Lead Us Not into Tanktation: A Simulation Modelling Approach to Gain Insights into Incentives for Sporting Teams to Tank," PLOS ONE, Public Library of Science, vol. 8(11), pages 1-10, November.
    5. Raul Caruso & Francesco Addesa & Marco Di Domizio, 2019. "The Determinants of the TV Demand for Soccer: Empirical Evidence on Italian Serie A for the Period 2008-2015," Journal of Sports Economics, , vol. 20(1), pages 25-49, January.
    6. Haan Marco & Koning Ruud & Witteloostuijn Arjen van, 2012. "The Effects of Institutional Change in European Soccer," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(3), pages 318-335, June.
    7. Marc Rohde & Christoph Breuer, 2018. "Competing by investments or efficiency? Exploring financial and sporting efficiency of club ownership structures in European football," Sport Management Review, Taylor & Francis Journals, vol. 21(5), pages 563-581, December.
    8. Wladimir Andreff, 2006. "New Perspectives in Sports Economics: A European View," Working Papers 0605, International Association of Sports Economists;North American Association of Sports Economists.
    9. 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.
    10. Barajas, Angel, 2004. "Modelo de valoración de clubes de fútbol basado en los factores clave de su negocio [Valuation model for football clubs based on the key factors of their business]," MPRA Paper 13158, University Library of Munich, Germany.
    11. Nicola Giocoli, 2007. "Competitive balance in football leagues when teams have different goals," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 54(3), pages 345-370, September.
    12. Thomas Cristofaro Warrener & Carlos Eduardo da Gama Torres & Igor Viveiros Melo Souza, 2022. "The relationship between financial and sporting performance of professional football clubs: empirical evidence from brazilian football," Textos para Discussão Cedeplar-UFMG 641, Cedeplar, Universidade Federal de Minas Gerais.
    13. Rodney Fort & Joel Maxcy, 2003. "“Competitive Balance in Sports Leagues: An Introductionâ€," Journal of Sports Economics, , vol. 4(2), pages 154-160, May.
    14. Carlo Bellavite Pellegrini & Raul Caruso & Marco Di Domizio, 2021. "Relative wages, payroll structure and performance in soccer. Evidence from Italian Serie A (2007-2019)," DISCE - Working Papers del Dipartimento di Politica Economica dipe0015, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    15. Stefan Szymanski, 2010. "The Economic Design of Sporting Contests," Palgrave Macmillan Books, in: The Comparative Economics of Sport, chapter 1, pages 1-78, Palgrave Macmillan.
    16. 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.
    17. Rosen, Sherwin & Sanderson, Allen, 2001. "Labour Markets in Professional Sports," Economic Journal, Royal Economic Society, vol. 111(469), pages 47-68, February.
    18. Patrick Massey & Shane Massey & Vincent (Vincent Peter) Hogan, 2012. "Analysing Determinants of Match Attendance in the European Rugby Cup," Working Papers 201228, School of Economics, University College Dublin.
    19. Marco Di Domizio & Carlo Bellavite Pellegrini & Raul Caruso, 2022. "Payroll dispersion and performance in soccer: A seasonal perspective analysis for Italian Serie A (2007–2021)," Contemporary Economic Policy, Western Economic Association International, vol. 40(3), pages 513-525, July.
    20. Dietl Helmut & Duschl Tobias & Franck Egon & Lang Markus, 2012. "A Contest Model of a Professional Sports League with Two-Sided Markets," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(3), pages 336-359, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ete:revbec:20090404. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: library EBIB (email available below). General contact details of provider: https://edirc.repec.org/data/fekulbe.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.