nep-spo New Economics Papers
on Sports and Economics
Issue of 2012‒02‒20
four papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. The news model of asset price determination: An empirical examination of the Danish football club Brøndby IF By Jørgensen, Casper W.; Moritzen, Mark R.; Stadtmann, Georg
  2. Grundzüge der Besteuerung von Sportwetten aus Sicht der Praxis By Albers, Norman
  3. Explaining Changes in Organizational Form: The Case of Professional Baseball By F. Andrew Hanssen; James W. Meehan, Jr.; Thomas J. Miceli
  4. The agglomeration effect of the Athens 2004 Olympic Games By José M. Albert; Nikolaos Georgantzis; Jorge Mateu; José I. Silva

  1. By: Jørgensen, Casper W.; Moritzen, Mark R.; Stadtmann, Georg
    Abstract: According to the news model of asset price determination, only the unexpected component of an information should drive the stock price. We use the Danish publicly listed football club Brøndby IF to analyze how match outcome impacts the stock price. To disentangle gross news from net news, betting odd information is used to control for the expected match outcome. --
    Keywords: news model,football industry,betting odds,stock market,market efficiency,event study
    JEL: G14 L83 G32
    Date: 2012
  2. By: Albers, Norman
    Abstract: The German sport betting market has traditionally been subjected to a strict regulation. The legal framework valid until the end of 2011 is defined by a state treaty between the federal government and the 16 states (Glücksspielstaatsvertrag), which only allows the public company Oddset to operate legally. This state treaty is currently under revision and several options with different taxation models are discussed. The present paper offers a brief theoretical analysis of the models under debate and a first empirical outlook of their consequences on the gambling market, especially on the sport betting sector in Germany. Three models of sport betting taxation and their empirical outcomes are presented in detail.
    Keywords: Gambling; sports betting; taxation; sports economics; state lotteries
    JEL: L83 L43
    Date: 2011–12–31
  3. By: F. Andrew Hanssen (Clemson University); James W. Meehan, Jr. (Colby College); Thomas J. Miceli (University of Connecticut)
    Abstract: The Grossman-Hart-Moore (GHM) property rights model predicts the assignment of residual claims to the party with the largest effect on an asset’s value. While plausible, the model has proven relatively hard to test. In this paper, we develop a formal model based on GHM, and use it to analyze an industry that has seen substantial changes in the nature of asset ownership over time: professional baseball. Early in the 20th century, major and minor league baseball teams operated as separate and independent entities, By the middle of the 20th century, the vast majority of minor league teams had become “affiliates” of major league franchises, either through vertical integration or contractual agreements. By the end of the 20th century, full vertical integration had become much less common (and was restricted mostly to the lower minor league classifications), while the nature of contractual claims was essentially split, with major league clubs holding rights over players and coaches and minor league “owners” holding rights over local revenue sources. To explain these changes, we focus on two important functions of minor league baseball: providing local entertainment and training potential major league players. We conclude that as the relative value of these activities changed, so did the structure of ownership. JEL Classification: L14, L22, L83 Key words: Contracts, Professional Baseball, Residual Rights, Vertical Integration
    Date: 2012–02
  4. By: José M. Albert (Universitat Jaume I); Nikolaos Georgantzis (Universidad de Granada); Jorge Mateu (Universitat Jaume I); José I. Silva (Universitat de Girona)
    Abstract: In this paper, we analyze the spatial distribution of economic activity and labor market variables in Greece from 1980 to 2006. Using a distance-based method within a stochastic point process, we identify two periods with opposite trends regarding the concentration of economic activity in the Greek territory. First, twenty years (1980- 1999) of a moderately decreasing trend of agglomeration due to systematic e®orts by the Greek governments to decentralize the economic activity away from the capital. Second, a short period (2000-2006) of sharp increases in agglomeration, coinciding -in space and time- with the public and private investments for the 2004 Olympic Games in Athens. In the same period, a similar e®ect of a smaller size is observed on the concentration of the labor force, employment and unemployment.
    Keywords: Concentration, Olympic Games, D-function, L-function, K-function, point process, spatial economics.
    JEL: C15 C16 C21 L16 R10 R50
    Date: 2012

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