IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Freedom of Entry, Market Size, and Competitive Outcome: Evidence from English Soccer

Author Info

  • Babatunde Buraimo

    ()

    (Lancashire Business School, University of Central Lancashire)

  • David Forrest

    ()

    (Salford Business School, University of Salford)

  • Robert Simmons

    ()

    (Department of Economics, The Management School, Lancaster University)

Abstract

A primary prediction of the theory of sports leagues is that teams with higher revenues will have higher league positions or winning percentages than teams with smaller revenues. Behind this prediction lies the key influence of market size, yet this has been underexplored in the empirical literature on sports leagues. This paper combines detailed census of population data with panel data on team performance for an open sports league, the English Football League, to test the hypothesis that market size matters for team performance. We find a particularly important role for population close to the team's location. The impact of local population is reduced but not eliminated when allowance is made for entry in the form of competition from neighboring clubs. We assess implications of these findings for both European and North American sports league structures.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 74 (2007)
Issue (Month): 1 (July)
Pages: 204-213

as
in new window

Handle: RePEc:sej:ancoec:v:74:1:y:2007:p:204-213
Contact details of provider: Web page: http://www.southerneconomic.org/

More information through EDIRC

Keywords:

Other versions of this item:

Find related papers by JEL classification:
  • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

References listed on IDEAS
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.:

as in new window
  1. John Goddard & Peter J. Sloane, 2005. "Economics of sport," Chapters, in: Economics Uncut, chapter 12 Edward Elgar Publishing.
  2. Stefan Szymanski, 2000. "A Market Test for Discrimination in the English Professional Soccer Leagues," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 590-603, June.
  3. Martin B. Schmidt & David J. Berri, 2001. "Competitive Balance and Attendance: The Case of Major League Baseball," Journal of Sports Economics, The North American Association of Sports Economists, vol. 2(2), pages 145-167, May.
  4. Forrest, David & Simmons, Robert & Feehan, Patrick, 2002. "A Spatial Cross-Sectional Analysis of the Elasticity of Demand for Soccer," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(3), pages 336-55, August.
Full references (including those not matched with items on IDEAS)

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

as in new window


Cited by:

  1. Leif Brandes & Egon Franck, 2005. "Who made Who? An Empirical Analysis of Competitive Balance in European Soccer Leagues," Working Papers 0041, University of Zurich, Institute for Strategy and Business Economics (ISU), revised 2006.
  2. Flores, Ramón & Forrest, David & Tena, J.D., 2012. "Decision taking under pressure: Evidence on football manager dismissals in Argentina and their consequences," European Journal of Operational Research, Elsevier, vol. 222(3), pages 653-662.
  3. Leif Brandes & Egon Franck & Philipp Theiler, 2010. "The Group Size and Loyalty of Football Fans: A Two-Stage Estimation Procedure to Compare Customer Potential Across Teams," Working Papers 0126, University of Zurich, Institute for Strategy and Business Economics (ISU), revised 2011.
  4. Egon Franck & Stephan Nüesch, 2007. "The Role of Patriotism in Explaining TV Audience of National Team Games - Evidence from Four International Tournaments," Working Papers 0014, University of Zurich, Center for Research in Sports Administration (CRSA).
  5. Stefan Szymanski, 2012. "Insolvency in English professional football: Irrational Exuberance or Negative Shocks?," Working Papers 1202, International Association of Sports Economists;North American Association of Sports Economists.
  6. Antonio Samagaio & Eduardo Couto & Jorge Caiado, 2009. "Sporting, financial and stock market performance in English football: an empirical analysis of structural relationships," CEMAPRE Working Papers 0906, Centre for Applied Mathematics and Economics (CEMAPRE), School of Economics and Management (ISEG), Technical University of Lisbon.
  7. B Buraimo & R Simmons, 2006. "Market size and attendance in English Premier League football," Working Papers 574562, Lancaster University Management School, Economics Department.
  8. repec:lan:wpaper:3983 is not listed on IDEAS
  9. repec:lan:wpaper:3698 is not listed on IDEAS
  10. Marco A. Haan & Ruud H. Koning & Arjen van Witteloostuijn, 2012. "The Effects of Institutional Change in European Soccer," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 232(3), pages 318-335, May.
  11. Terry A Robinson, 2011. "Dyed in the Wool? An Empirical Note on Fan Loyalty," Post-Print hal-00667599, HAL.
  12. Madden, Paul, 2012. "Fan welfare maximization as a club objective in a professional sports league," European Economic Review, Elsevier, vol. 56(3), pages 560-578.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Access and download statistics

When requesting a correction, please mention this item's handle: RePEc:sej:ancoec:v:74:1:y:2007:p:204-213. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laura Razzolini)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.