nep-spo New Economics Papers
on Sports and Economics
Issue of 2010‒12‒11
three papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. The Impact of Governance on European Football Leagues’ Competitiveness By Bastien Drut; Gaël Raballand
  2. Sports Retailing in India: Opportunities, Constraints and Way Forward By Arpita Mukherjee; Ramneet Goswami; Tanu M Goyal; Divya Satija
  3. How Expectations Affect Managerial Change By Egon Franck; Stephan Nüesch; Jan Pieper

  1. By: Bastien Drut; Gaël Raballand
    Abstract: The sharp increase in TV broadcasting rights and the liberalization of the transfer market has completely reshaped the balance of power in European football, both within and between the different leagues. A trade-off has emerged with leagues whose teams perform well in the Champions League suffering financial inequality and clubs in financial difficulty, while those leagues which are less successful in the Champions League enjoy relative financial equality and less debt. The English, Italian and Spanish leagues are in the first category while the French and German leagues are in the second category. Based on interviews with several stakeholders, this paper demonstrates that this is mainly explained by the extent of financial regulation, which depends on leagues' and clubs' governance. It also discusses the role of UEFA and assesses the impact of the introduction of the financial fair-play rule.
    Keywords: Ligue Française de Football, Deutsche Fußball Liga, football clubs, competitiveness, governance
    JEL: L83
    Date: 2010
  2. By: Arpita Mukherjee; Ramneet Goswami; Tanu M Goyal; Divya Satija (Indian Council for Research on International Economic Relations)
    Abstract: Sports retail is a small but fast growing segment of modern retail in India. Recently, the country has been hosting many international sports and this has given a boost to this sector. Many foreign and domestic corporate retailers have entered sports retail. Sports goods manufacturing is a focus area in the Foreign Trade Policy (2009-2014) and the government is taking a fresh look at the current foreign direct investment policy in retail. In the above context, this paper provides an overview of the sports retail sector in India. Specifically, it presents the different retail formats, consumer profile, retailers’ supply chain and sourcing. It also examines the retail and sports policies and their implications for this segment of retail, analyses the barriers faced by this sector and suggests policy reforms. The study found that the policy of allowing 51 per cent FDI in the single-brand format has not benefited this sector. The FDI ban on multi-brand retail is not an entry barrier since foreign retailers can establish their presence in India through other routes. The study found that since this is a niche segment of retail, FDI would not have an adverse impact on traditional retailers. It concludes that government should allow 51 per cent FDI in multi-brand sports retail. This will increase sourcing from India, lead to diffusion of technology, proliferation of brands, investment in sports and sports promotion, among others.
    Keywords: Retail, Sports, Government Policy, Trade, Consumer Survey
    JEL: L67 L81 L83 L88
    Date: 2010
  3. By: Egon Franck (Institute for Strategy and Business Economics, University of Zurich); Stephan Nüesch (Institute for Strategy and Business Economics, University of Zurich); Jan Pieper (Institute for Strategy and Business Economics, University of Zurich)
    Abstract: This study addresses the question how performance expectations affect involuntary managerial change. As we measure performance expectations based on highly efficient bookmaker odds, our specification is less subject to manipulations than the analyst forecasts employed in prior studies. Using match-level data from the German Bundesliga, we empirically investigate to which extent deviations from rational performance expectations affect the probability of involuntary coach dismissal, even after controlling for various measures of actual team performance. We find that coaches who face higher performance expectations are more likely to be fired than peers with similar performance records but lower expectations.
    Keywords: Expectations, managerial change, aspiration level, betting odds
    Date: 2010–12

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