nep-spo New Economics Papers
on Sports and Economics
Issue of 2009‒10‒10
three papers chosen by
Joao Carlos Correia Leitao
Polytechnic Institute of Portalegre and Technical University of Lisbon

  1. The Interleague Advantage: A Difference in Differences Analysis By Brian Volz
  2. Professional sports clubs and business enterprises – a comparative analysis of governance structures in football By Egon Franck
  3. Who will go down this year? The Determinants of Promotion and Relegation in European Soccer Leagues By Jean-Baptiste Dherbecourt; Bastien Drut

  1. By: Brian Volz (University of Connecticut)
    Abstract: It has been argued that the introduction of interleague play in Major League Baseball provides an advantage to American League teams due to their use of the designated hitter. This paper examines whether this advantage actually exists and if so how large any advantage may be. The question is analyzed using a difference in differences model based on player performance data on interleague games from 1997 to 2008. It is shown that American League teams do have a small and statistically significant offensive advantage during interleague play. American League teams are estimated to have a 1.1 to 7.3 point advantage in batting average, a 0.1 to 9.8 point advantage in on base percentage, and a 1.2 to 9.9 point advantage in slugging percentage.
    Keywords: Baseball, League Structure, Difference in Differences
    JEL: L83
    Date: 2009–10
  2. By: Egon Franck (Institute for Strategy and Business Economics, University of Zurich)
    Abstract: Based on the analysis of the specific industry environment in which football clubs compete, this paper presents a comparative institutional analysis of three paradigmatic structures of football club governance: classical (privately owned) football firms, modern football corporations (stock corporations with dispersed ownership) and members’ associations with an own legal personality (Verein). The results of the analysis are applied to current developments in German and English football and to recent initiatives of the Football Governing Bodies.
    Date: 2009
  3. By: Jean-Baptiste Dherbecourt (Ecole doctorale de l’Ecole Polytechnique, Palaiseau, France); Bastien Drut (Centre Emile Bernheim, Solvay Brussels School of Economics and Management, Université Libre de Bruxelles, Brussel, Credit Agricole Asset Management SGR and University of Paris Ouest, Paris.)
    Abstract: Contributing to the lively debate on closed leagues (North American model) versus open leagues (European model) in professional sport league, this paper aims at determining the drivers of promotion and relegation in the major European soccer leagues. Using a large and original dataset (for example: club’s link with a billionaire, club listed in the stock market, etc.) and logistic regressions, our results show that institutional factors matter to settle in the elite. It also indicates that open leagues system in European soccer championships is de facto very similar to closed leagues system. Furthermore, our forecasting model can be of interest for soccer investors or bookmakers.
    Keywords: Economics of Sport, Organization of Sports Leagues, Soccer, Promotion and Relegation, Economic Forecasting, Regional Economy, Billionaires, Stock Market.
    JEL: L83 R11 R58
    Date: 2009–10

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