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Broadcasting rights and competitive balance in European soccer

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  • PEETERS, Thomas

Abstract

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.

Suggested Citation

  • PEETERS, Thomas, 2009. "Broadcasting rights and competitive balance in European soccer," Working Papers 2009009, University of Antwerp, Faculty of Applied Economics.
  • Handle: RePEc:ant:wpaper:2009009
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    File URL: https://repository.uantwerpen.be/docman/irua/2695ca/84bb5041.pdf
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    Cited by:

    1. repec:bla:coecpo:v:36:y:2018:i:1:p:215-233 is not listed on IDEAS
    2. Budzinski, Oliver, 2017. "Four cases in sports competition policy: Baseball, judo, football, and motor racing," Ilmenau Economics Discussion Papers 109, Ilmenau University of Technology, Institute of Economics.
    3. Budzinski, Oliver & Müller-Kock, Anika, 2016. "Market power and media revenue allocation in professonal sports: The case of formula one," Ilmenau Economics Discussion Papers 102, Ilmenau University of Technology, Institute of Economics.
    4. Peeters, Thomas, 2012. "Media revenue sharing as a coordination device in sports leagues," International Journal of Industrial Organization, Elsevier, vol. 30(2), pages 153-163.
    5. Oliver Budzinski, 2011. "The Institutional Framework for Doing Sports Business: Principles of EU Competition Policy in Sports Markets," Working Papers 108/11, University of Southern Denmark, Department of Sociology, Environmental and Business Economics.
    6. Budzinski, Oliver, 2017. "Market-internal financial regulation in sports as an anticompetitive institution," Ilmenau Economics Discussion Papers 110, Ilmenau University of Technology, Institute of Economics.
    7. Norbäck, Pehr-Johan & Olsson, Martin & Persson, Lars, 2016. "Talent Development and Labour Market Integration: The Case of EU Football," Working Paper Series 1126, Research Institute of Industrial Economics, revised 14 Mar 2018.
    8. 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.
    9. Stefan Kesenne, 2014. "The collection and distribution of media rights in a win-maximization league," Chapters,in: Handbook on the Economics of Professional Football, chapter 5, pages 73-79 Edward Elgar Publishing.

    More about this item

    Keywords

    Competitive balance; Broadcast rights; Antitrust policy; Soccer;

    JEL classification:

    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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