IDEAS home Printed from https://ideas.repec.org/a/sae/jospec/v25y2024i2p231-256.html

Domestic Competitive Imbalance as the “Price†of Surprise in the Champions League

Author

Listed:
  • Gábor Rappai
  • Diána Ivett Fűrész

Abstract

The opinions regarding the impact of the domestic league's competitive balance (CB) on continental club competition sporting success are divided. Through the data of the last 18 seasons (2004/05–2021/22) and 576 games, we have examined whether the teams from a more balanced domestic league can achieve more unexpected results in the Champions League group stage. The current study aims to contribute to previously published literature by applying the market value-based surprise index. The results of panel logistic regression models suggest that a lower domestic league's CB in a given season can support teams to overperform in the international field in the same season.

Suggested Citation

  • Gábor Rappai & Diána Ivett Fűrész, 2024. "Domestic Competitive Imbalance as the “Price†of Surprise in the Champions League," Journal of Sports Economics, , vol. 25(2), pages 231-256, February.
  • Handle: RePEc:sae:jospec:v:25:y:2024:i:2:p:231-256
    DOI: 10.1177/15270025231217968
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/15270025231217968
    Download Restriction: no

    File URL: https://libkey.io/10.1177/15270025231217968?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access 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. Stefan Szymanski, 2010. "Income Inequality, Competitive Balance and the Attractiveness of Team Sports: Some Evidence and a Natural Experiment from English Soccer," Palgrave Macmillan Books, in: Football Economics and Policy, chapter 9, pages 182-201, Palgrave Macmillan.
    3. Vincenzo Scoppa, 2015. "Fatigue and Team Performance in Soccer," Journal of Sports Economics, , vol. 16(5), pages 482-507, June.
    4. Antonio Avila-Cano & Amparo Ruiz-Sepulveda & Francisco Triguero-Ruiz, 2021. "Identifying the Maximum Concentration of Results in Bilateral Sports Competitions," Mathematics, MDPI, vol. 9(11), pages 1-19, June.
    5. Kelly Goossens, 2006. "Competitive Balance in European Football - Comparison by Adapting Measures: National Measure of Seasonal Imbalance and Top 3," IASE Conference Papers 0620, International Association of Sports Economists.
    6. Kelly Goossens, 2006. "Competitive balance in european football: comparison by adapting measures: national measure of seasonal imbalance and Top 3," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, vol. 2(2), pages 77-122, Dicembre.
    7. Stefan Késenne, 2000. "The Impact of Salary Caps in Professional Team Sports," Scottish Journal of Political Economy, Scottish Economic Society, vol. 47(4), pages 422-430, September.
    8. Fabíola Zambom-Ferraresi & Lucía Isabel García-Cebrián & Fernando Lera-López & Belén Iráizoz, 2017. "Performance Evaluation in the UEFA Champions League," Journal of Sports Economics, , vol. 18(5), pages 448-470, June.
    9. Arellano, M, 1987. "Computing Robust Standard Errors for Within-Groups Estimators," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 49(4), pages 431-434, November.
    10. Simon Rottenberg, 1956. "The Baseball Players' Labor Market," Journal of Political Economy, University of Chicago Press, vol. 64(3), pages 242-242.
    11. 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.
    12. Stefan Szymanski & Stefan Késenne, 2010. "Competitive Balance and Gate Revenue Sharing in Team Sports," Palgrave Macmillan Books, in: The Comparative Economics of Sport, chapter 7, pages 229-243, Palgrave Macmillan.
    13. James H. Stock & Mark W. Watson, 2008. "Heteroskedasticity-Robust Standard Errors for Fixed Effects Panel Data Regression," Econometrica, Econometric Society, vol. 76(1), pages 155-174, January.
    14. András Gyimesi, 2020. "League Ranking Mobility Affects Attendance: Evidence From European Soccer Leagues," Journal of Sports Economics, , vol. 21(8), pages 808-828, December.
    15. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    16. P. Dorian Owen & Nicholas King, 2015. "Competitive Balance Measures In Sports Leagues: The Effects Of Variation In Season Length," Economic Inquiry, Western Economic Association International, vol. 53(1), pages 731-744, January.
    17. Peter O’Donoghue & Adam Cullinane, 2011. "A regression-based approach to interpreting sports performance," International Journal of Performance Analysis in Sport, Taylor & Francis Journals, vol. 11(2), pages 295-307, August.
    18. Tim Pawlowski & Christoph Breuer & Arnd Hovemann, 2010. "Top Clubs’ Performance and the Competitive Situation in European Domestic Football Competitions," Journal of Sports Economics, , vol. 11(2), pages 186-202, April.
    19. Klaassen F. J G M & Magnus J. R., 2001. "Are Points in Tennis Independent and Identically Distributed? Evidence From a Dynamic Binary Panel Data Model," Journal of the American Statistical Association, American Statistical Association, vol. 96, pages 500-509, June.
    20. Jean-Jacques Gouguet & Didier Primault, 2006. "The French Exception," Journal of Sports Economics, , vol. 7(1), pages 47-59, February.
    21. Arne Feddersen, 2006. "Economic Consequences of the UEFA Champions League for National Championships - The Case of Germany," Working Papers 0012006, Chair for Economic Policy, University of Hamburg.
    22. Avila-Cano, Antonio & Owen, P. Dorian & Triguero-Ruiz, Francisco, 2023. "Measuring competitive balance in sports leagues that award bonus points, with an application to rugby union," European Journal of Operational Research, Elsevier, vol. 309(2), pages 939-952.
    23. Dietl Helmut M & Lang Markus & Rathke Alexander, 2009. "The Effect of Salary Caps in Professional Team Sports on Social Welfare," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-23, April.
    24. Helmut Dietl & Martin Grossmann & Andreas Hefti & Markus Lang, 2015. "Spillovers in Sports Leagues with Promotion and Relegation," Scottish Journal of Political Economy, Scottish Economic Society, vol. 62(1), pages 59-74, February.
    25. Daniel R. Marburger, 1997. "Gate Revenue Sharing And Luxury Taxes In Professional Sports," Contemporary Economic Policy, Western Economic Association International, vol. 15(2), pages 114-123, April.
    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. Juan D. Moreno-Ternero & Tim Pawlowski & Shlomo Weber, 2026. "International rewards and budget concentration in domestic sports leagues," Annals of Operations Research, Springer, vol. 357(2), pages 1079-1099, February.

    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. Diána Ivett Furész & Pongrác Ács, 2020. "The Relation Between National Competition and International Competitiveness," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 18(87), pages 11-26.
    2. 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.
    3. 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.
    4. Tim Pawlowski & Christoph Breuer & Arnd Hovemann, 2010. "Top Clubs’ Performance and the Competitive Situation in European Domestic Football Competitions," Journal of Sports Economics, , vol. 11(2), pages 186-202, April.
    5. Warnke, Arne Jonas & Sittl, Roman, 2016. "Competitive Balance and Assortative Matching in the German Bundesliga," VfS Annual Conference 2016 (Augsburg): Demographic Change 145838, Verein für Socialpolitik / German Economic Association.
    6. Andrzej Sznajder, 2010. "Równowaga sił konkurentów na rynku sportu profesjonalnego," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 10, pages 79-95.
    7. Dietl Helmut M & Duschl Tobias & Lang Markus, 2011. "Executive Pay Regulation: What Regulators, Shareholders, and Managers Can Learn from Major Sports Leagues," Business and Politics, De Gruyter, vol. 13(2), pages 1-32, August.
    8. Oliver Gürtler & Markus Lang & Tim Pawlowski, 2015. "On the Release of Players to National Teams," Journal of Sports Economics, , vol. 16(7), pages 695-713, October.
    9. László Csató & Dóra Gréta Petróczy, 2024. "Bibliometric indices as a measure of performance and competitive balance in the knockout stage of the UEFA Champions League," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 32(4), pages 961-988, December.
    10. Michela Pierini, 2011. "Diritti Tv E Competitive Balance Nel Calcio Professionistico Italiano," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, vol. 7(2), pages 87-113, September.
    11. Marco Runkel, 2022. "Player Mobility and Competitive Balance Regulation in Professional Sports Leagues," Journal of Sports Economics, , vol. 23(4), pages 479-500, May.
    12. Helmut Dietl & Egon Franck & Markus Lang & Alexander Rathke, 2010. "Organizational Differences between U.S. Major Leagues and European Leagues: Implications for Salary Caps," Working Papers 0122, University of Zurich, Institute for Strategy and Business Economics (ISU).
    13. Dorian Owen, 2014. "Measurement of competitive balance and uncertainty of outcome," Chapters, in: John Goddard & Peter Sloane (ed.), Handbook on the Economics of Professional Football, chapter 3, pages 41-59, Edward Elgar Publishing.
    14. Braun, Erik & Gyimesi, András, 2021. "Van-e esélyük a feljutó csapatoknak a bennmaradásra? Az európai labdarúgó-bajnokságok összehasonlítása az első osztály előnye alapján [Do novice top teams have a chance of remaining?]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 863-889.
    15. Raphael Flepp & Tim Pawlowski & Travis Richardson, 2025. "Suspense and Surprise in European Football," Papers 2506.21253, arXiv.org.
    16. 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.
    17. 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.
    18. Meletakos, Panagiotis & Chatzicharistos, Dimitrios & Apostolidis, Nikolaos & Manasis, Vasilios & Bayios, Ioannis, 2016. "Foreign players and competitive balance in Greek basketball and handball championships," Sport Management Review, Elsevier, vol. 19(4), pages 391-401.
    19. Helmut Dietl & Tobias Duschl & Markus Lang, 2010. "Gehaltsobergrenzen und Luxussteuern: Erkenntnisse aus dem professionellen Mannschaftssport," Working Papers 0136, University of Zurich, Institute for Strategy and Business Economics (ISU).
    20. Avila-Cano, Antonio & Triguero-Ruiz, Francisco & Ordóñez-de-Haro, José Manuel, 2025. "Scoring markets: Theory and application in sports economics," Economic Modelling, Elsevier, vol. 152(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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:sae:jospec:v:25:y:2024:i:2:p:231-256. 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: SAGE Publications (email available below). General contact details of provider: .

    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.