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The Monetary Value of Competitive Balance for Sport Consumers: A Stated Preference Approach to European Professional Football

Author

Listed:
  • Tim Pawlowski

    (University of Tuebingen)

  • Oliver Budzinski

    (Ilmenau University of Technology)

Abstract

Ever since the pioneering work of Rottenberg (1956) and Neale (1964), the uncertainty of outcome hypothesis (UOH) has played a major role in the economic analysis of professional sport leagues. However, decades of empirical research have not been successful in establishing clear evidence for the importance of competitive balance (CB) for attendance or TV viewers in European professional football. In order to find possible reasons for the gap between the UOH and (the lack of) its empirical validation, our paper adopts a stated preference approach focused on the fans’ perception of CB and its relevance in three European professional football leagues. The results indicate that a tipping point/threshold value of CB exists and that crossing this threshold can lead to massive demand reactions. However, since the threshold has not been reached in the leagues included in the sample, the paper provides a possible explanation for the above mentioned gap.

Suggested Citation

  • Tim Pawlowski & Oliver Budzinski, 2013. "The Monetary Value of Competitive Balance for Sport Consumers: A Stated Preference Approach to European Professional Football," International Journal of Sport Finance, Fitness Information Technology, vol. 8(2), pages 112-123, May.
    • Handle: RePEc:jsf:intjsf:v:8:y:2013:i:2:p:112-123
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    Cited by:

    1. Lahvicka, Jiri, 2013. "Impact of playoffs on seasonal uncertainty in Czech ice hockey Extraliga," MPRA Paper 44608, University Library of Munich, Germany.
    2. Lahvicka, Jiri, 2013. "Does Match Uncertainty Increase Attendance? A Non-Regression Approach," MPRA Paper 48571, University Library of Munich, Germany.
    3. Franziska Prockl & Dirk Semmelroth, 2018. "Perception Versus Reality - Competitive Balance In Major League Soccer From 1996 – 2016," Working Papers Dissertations 36, Paderborn University, Faculty of Business Administration and Economics.

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    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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