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Evaluating Rent Dissipation in the Spanish Football Industry


  • Guido Ascari

    (Department of Economics and Quantitative Methods - University of Pavia, Italy)

  • Philippe Gagnepain

    () (Departamento de Economía - Universidad Carlos III de Madrid)


This article proposes to evaluate empirically the consequences of the rent-seeking behavior of football clubs on their costs. The empirical work entails estimating a football wage, result, and demand system with data on clubs competing in the first and second Spanish leagues during the 1996-2003 seasons. The estimation sheds light on wage distortions that differ from 45% to 52% throughout the period considered. This provides an interesting illustration of the financial difficulties faced recently by many European football clubs.

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  • Guido Ascari & Philippe Gagnepain, 2007. "Evaluating Rent Dissipation in the Spanish Football Industry," Post-Print hal-00622841, HAL.
  • Handle: RePEc:hal:journl:hal-00622841
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    References listed on IDEAS

    1. Nti, Kofi O, 1999. "Rent-Seeking with Asymmetric Valuations," Public Choice, Springer, vol. 98(3-4), pages 415-430, March.
    2. Richard Hofler & James Payne, 1996. "How close to their offensive potential do national football league teams play?," Applied Economics Letters, Taylor & Francis Journals, vol. 3(11), pages 743-747.
    3. 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.
    4. Szymanski, Stefan & Valletti, Tommaso, 2004. "First and Second Prizes in Imperfectly Discriminating Contests," CEPR Discussion Papers 4484, C.E.P.R. Discussion Papers.
    5. Arye L. Hillman & John G. Riley, 1989. "Politically Contestable Rents And Transfers," Economics and Politics, Wiley Blackwell, vol. 1(1), pages 17-39, March.
    6. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
    7. Clark, Derek J & Riis, Christian, 1996. "A Multi-winner Nested Rent-Seeking Contest," Public Choice, Springer, vol. 87(1-2), pages 177-184, April.
    8. Clark, Derek J. & Riis, Christian, 1998. "Influence and the discretionary allocation of several prizes," European Journal of Political Economy, Elsevier, vol. 14(4), pages 605-625, November.
    9. Stein, William E, 2002. "Asymmetric Rent-Seeking with More Than Two Contestants," Public Choice, Springer, vol. 113(3-4), pages 325-336, December.
    10. Stefan Szymanski & Ron Smith, 1997. "The English Football Industry: profit, performance and industrial structure," International Review of Applied Economics, Taylor & Francis Journals, vol. 11(1), pages 135-153.
    11. Sloane, Peter J, 1971. "The Economics of Professional Football: The Football Club as a Utility Maximiser," Scottish Journal of Political Economy, Scottish Economic Society, vol. 18(2), pages 121-146, June.
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    1. repec:hal:journl:halshs-00971782 is not listed on IDEAS
    2. Carlos Pestana Barros & Eduardo Couto & Antonio Samagaio, 2014. "Management ability, strategy, tactics and team performance," Chapters,in: Handbook on the Economics of Professional Football, chapter 11, pages 166-188 Edward Elgar Publishing.
    3. Kostas Kounetas, 2014. "Greek football clubs’ efficiency before and after Euro 2004 Victory: a bootstrap approach," 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. 22(4), pages 623-645, December.
    4. Wladimir Andreff, 2014. "Building Blocks for a Disequilibrium Model of a European Team Sports League," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00971782, HAL.
    5. Andrés Picazo-Tadeo & Francisco Gónzalez-Gómez & Jorge Guardiola Wanden-Berghe, 2011. "Referee home bias due to social pressure. Evidence from Spanish football," Working Papers 1119, Department of Applied Economics II, Universidad de Valencia.
    6. Sébastien Dessus & Gaël Raballand, 2011. "L'Etat peut-il rendre compétitif les clubs de football français ?," Post-Print halshs-00639300, HAL.
    7. Barros, Carlos Pestana & Assaf, A.George & de Araujo, Ari Francisco, 2011. "Cost performance of Brazilian soccer clubs: A Bayesian varying efficiency distribution model," Economic Modelling, Elsevier, vol. 28(6), pages 2730-2735.
    8. Sébastien Dessus & Gaël Raballand, 2011. "L'Etat peut-il rendre compétitif les clubs de football français," Documents de travail du Centre d'Economie de la Sorbonne 11048, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    9. Carlos Pestana Barros & Julio del Corral & Pedro Garcia-del-Barrio, 2008. "Identification of Segments of Soccer Clubs in the Spanish League First Division With a Latent Class Model," Journal of Sports Economics, , vol. 9(5), pages 451-469, October.
    10. Carlos Barros & Pedro Garcia-del-Barrio, 2011. "Productivity drivers and market dynamics in the Spanish first division football league," Journal of Productivity Analysis, Springer, vol. 35(1), pages 5-13, February.

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