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Economic Consequences of the UEFA Champions League for National Championships - The Case of Germany

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  • Arne Feddersen

    () (Chair for Economic Policy, University of Hamburg)

Abstract

Qualifying for and participating in the UEFA Champions League (UCL) is associated with generating large revenue flows. The fear of the football associations, some journalists and fans is that a permanent financial and sporting imbalance will be created between clubs qualifying for the UCL and the remaining clubs. This paper analyses the consequences of the UCL on the national championship in the German “Bundesliga”. The first section shows a review of economic and sporting trends in the Bundesliga for the 1980-1997 period. Also main changes in the domestic championship are reviewed. In second section an analysis of the UCL with (a) regard to competitive balance and (b) with regard to general balance will be undertaken. An interesting question is whether clubs qualifying for the UCL differ from the other teams. Especially the question whether competitive balance changes when there is an imbalance in the financial situation of the clubs (enforced by the UCL) will be analyzed. The third section describes the regulatory mechanisms of the German Bundesliga like revenue sharing and the licensing system.

Suggested Citation

  • 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.
  • Handle: RePEc:hce:wpaper:200601
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    File URL: http://www.hced.uni-hamburg.de/WorkingPapers/200601.pdf
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    References listed on IDEAS

    as
    1. Arne Feddersen & Wolfgang Maennig, 2005. "Trends in Competitive Balance: Is there Evidence for Growing Imbalance in Professional Sport Leagues?," Working Papers 0012005, Chair for Economic Policy, University of Hamburg.
    2. Wolfgang Maennig & Florian Schwarthoff, 2006. "Stadium Architecture and regional economic development: International experience and the plans of Durban," Working Papers 200604, Chair for Economic Policy, University of Hamburg.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    UEFA; Champions League; Competitive Balance; Bundesliga; Germany;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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