Broadcasting rights and competitive balance in European soccer
Collective sales of media rights are a common practice in sports leagues. Proponents of the system claim that it is a necessary tool for the maintenance of competitive balance. In this empirical paper, I argue that, in European soccer, collective sales do not increase competitive balance as compared to individual sales. Secondly, I demonstrate the negative effect of the UEFA Champions League on competitive balance. Finally, I illustrate the beneficial effect of a larger market size and a more equal distribution of drawing power. These results shed new light on antitrust and solidarity policies in the sports industry.
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