nep-spo New Economics Papers
on Sports and Economics
Issue of 2013‒06‒24
two papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. The Fibonacci Strategy Revisited: Can You Really Make Money by Betting on Soccer Draws? By Lahvicka, Jiri
  2. Financial Fair Play in European Club Football – What is it all about? By Egon Franck

  1. By: Lahvicka, Jiri
    Abstract: This article investigates the strategy of betting on soccer draws using the Fibonacci sequence. In the previous literature, this strategy has been found to be both simple and profitable, indicating that the soccer betting market is not efficient. The strategy is tested both in a simulated market and on a real data set of almost 60,000 European soccer matches. Contrary to the previous findings in the literature, all tested versions of the Fibonacci betting strategy are found to lose money.
    Keywords: Fibonacci betting strategy, market efficiency
    JEL: G14 L83
    Date: 2013–06–17
  2. By: Egon Franck (Department of Business Administration (IBW), University of Zurich)
    Abstract: The new UEFA Club Licensing and Financial Fair Play Regulations have encountered stiff criticism. The concerns are that the new regulations may harm football in three different ways: By forgoing the potential benefits from substantial injections of “external” money into payrolls, by restricting competition in the player market without at the same time achieving benefits from more balanced competition, and by creating some sort of barrier to entry which could “freeze” the current hierarchy of clubs. It is the purpose of this paper to take these concerns as a starting point for discussing the true objectives of the new regulations. As a by-product it will become obvious why and in which points the concerns are unfounded.
    Keywords: Financial Fair Play, Soft Budget Constraints, Hard Budget Constraints, Moral Hazard, Rent-Seeking, Sugar Daddies, Competitive Balance, “Ossification”
    Date: 2013–06

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