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The consequences of an open labour market in a closed product market in the economic environment of European professional football

Author

Listed:
  • Trudo Dejonghe

    () (Department of Business Studies, Lessius University College)

  • Wim Van Opstal

    (Higher Institute for Labour Studies – Catholic University of Leuven)

Abstract

Ever since the Bosman case opened the labour market for players in European professional football, competitive balance has reduced in favour of the Big 5 leagues (England, Spain, Italy, Germany and France). In this article we show that changing structures towards an open labour market in a closed product market resulted in a migration of player talents towards the major leagues and teams and in a competitive disadvantage for the smaller market leagues and their teams. Next to a theoretical argumentation, we provide empirical evidence and assess future options for the structure of European professional football.

Suggested Citation

  • Trudo Dejonghe & Wim Van Opstal, 2008. "The consequences of an open labour market in a closed product market in the economic environment of European professional football," Working Papers 0830, International Association of Sports Economists;North American Association of Sports Economists.
    • Handle: RePEc:spe:wpaper:0830
    as

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    File URL: http://web.holycross.edu/RePEc/spe/DejongheVanOpstal_LabourMarkets.pdf
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    References listed on IDEAS

    as
    1. Stefan Szymanski, 2007. "The Champions League And The Coase Theorem," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(3), pages 355-373, July.
    2. Stephen Hall & Stefan Szymanski & Andrew S. Zimbalist, 2002. "Testing Causality Between Team Performance and Payroll," Journal of Sports Economics, , vol. 3(2), pages 149-168, May.
    3. Haan, Marco & Koning, Ruud H. & Witteloostuijn, Arjen van, 2002. "Market forces in European soccer," CCSO Working Papers 200211, University of Groningen, CCSO Centre for Economic Research.
    4. Stefan Kesenne, 2007. "The Peculiar International Economics Of Professional Football In Europe," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(3), pages 388-399, July.
    5. El-Hodiri, Mohamed & Quirk, James, 1971. "An Economic Model of a Professional Sports League," Journal of Political Economy, University of Chicago Press, vol. 79(6), pages 1302-1319, Nov.-Dec..
    6. Thomas Ericson, 2000. "The Bosman Case," Journal of Sports Economics, , vol. 1(3), pages 203-218, August.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Bosman case; competitive balance; international labour mobility; professional team sports; stepping stone league;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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