This thesis will provide the reader with a good understanding of the economic forces in the modern sports industry with a focus on European Football. The reader will be introduced to the most common measures of Competitive Balance and the existing literature on the topic. Equipped with this knowledge, the paper takes the reader on a recap of the European top leagues history with a focus on the Competitive Balance beginning in 1980. The final chapter then provides an econometric deep dive into the data for the Bundesliga.
The commercialization of European football strongly accelerated in the early 1990s and brought tremendous revenue increases to the industry. Rapidly, broadcasting revenues became the clubs’ main source of income. Some professional football leagues jointly sell their teams broadcasting rights as bundles and share the incomes with a certain degree of solidarity among them. This study tries to find evidence for the positive impact of such revenue sharing agreements on the competitive balance in Europe’s strongest football leagues. Therefore, a newly developed measure is applied, which contains combined information about leagues absolute level of competitive balance as well as relative changes in standings over time. The results of the study mainly speak in favor of an enhancement of solidarity among teams, because of its positive impact on competitive balance and thus on a leagues attractiveness to customers.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Related literature
- Theory and relevance for today's sports industry
- Previous research on competitive balance
- Why case study on the Bundesliga?
- Measurement of competitive balance
- Measures of competitive balance
- Standard deviation of winning percentage
- The Herfindahl-Hirschman Index
- The Competitive Balance Ratio
- Top k ranking
- Requirements for comprehensive measures of competitive balance
- The Surprise Index
- Data
- Measures of competitive balance
- Development of competitive balance for European Top leagues
- German Bundesliga
- Other European top leagues
- Revenue sharing in the Bundesliga
- Econometrical analysis
- 1980/81 - 2017/18 regression models
- 1992/93 - 2016/17 regression models
- Results
- Policy recommendations
- Econometrical analysis
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This master's thesis aims to analyze the relationship between competitive balance and revenue sharing in European football leagues. The study specifically focuses on the Bundesliga, Germany's top football league, and its comparison to other top leagues in Europe.- Examining the evolution of competitive balance in European football leagues
- Analyzing the impact of revenue sharing on competitive balance within the Bundesliga
- Comparing the Bundesliga with other European top leagues in terms of competitive balance
- Developing policy recommendations for the Bundesliga based on the findings
- Utilizing econometric models to assess the relationship between revenue sharing and competitive balance
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter presents a brief overview of the topic, highlighting the importance of competitive balance and revenue sharing in professional sports. It outlines the research question and the specific focus on the Bundesliga.
- Related Literature: This chapter provides a comprehensive review of existing research on competitive balance and revenue sharing in the sports industry, specifically examining the theoretical underpinnings and empirical findings related to the topic.
- Measurement of competitive balance: This chapter delves into the various measures used to assess competitive balance in sports leagues, including the standard deviation of winning percentage, the Herfindahl-Hirschman Index, the Competitive Balance Ratio, and the Surprise Index. It also outlines the data sources and methods used in the study.
- Development of competitive balance for European Top leagues: This chapter presents an analysis of competitive balance in the Bundesliga and other top European leagues, using the Surprise Index to measure changes in competitive balance over time.
- Revenue sharing in the Bundesliga: This chapter analyzes the revenue sharing system in the Bundesliga, specifically examining the impact of revenue distribution on competitive balance. It employs econometric models to test the relationship between revenue sharing and competitive balance.
Schlüsselwörter (Keywords)
The study revolves around the concepts of competitive balance, revenue sharing, and economic analysis within the context of the Bundesliga and other top European football leagues. The analysis employs econometric modeling techniques and relies on various measures of competitive balance, including the Surprise Index.- Arbeit zitieren
- Martin Hartleib (Autor:in), 2018, Competitive balance and revenue sharing in European football. Some novel insights, München, GRIN Verlag, https://www.grin.com/document/1360581
