nep-spo New Economics Papers
on Sports and Economics
Issue of 2014‒05‒09
three papers chosen by
Joao Carlos Correia Leitao
Universidade da Beira Interior and Universidade de Lisboa

  1. Building Blocks for a Disequilibrium Model of a European Team Sports League By Wladimir Andreff
  2. Der Einfluss der Champions League auf die Wettbewerbsposition einzelner Vereine und die Competitive Balance der Bundesliga By Partosch, Christoph
  3. It Hurts (Stock Prices) When Your Team Is About to Lose a Soccer Match By Michael Ehrmann; David-Jan Jansen

  1. By: Wladimir Andreff (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris 1 - Panthéon-Sorbonne)
    Abstract: Starting from observed facts in European football, a disequilibrium model of a team sport league with win maximising teams under a soft budget constraint is elaborated on. Three markets are modelled: a market for players' talents, a market for fan attendance, and a market for televised sport (either free-to-air or pay-per-view).
    Keywords: sports economics, disequilibrium economics modelling, football, market for talent, market fan attendance, televised sport
    Date: 2014
  2. By: Partosch, Christoph
    Abstract: Eine Teilnahme an der UEFA Champions League ermöglicht Vereinen, erhebliche finanzielle Zusatzeinnahmen zu generieren und ihre Kader so weiter zu verstärken. Gerade Vertreter schwächerer Bundesligaklubs beklagen sich daher über abnehmende Wettbewerbschancen und eine Schwächung der Competitve Balance und fordern entsprechende Gegenmaßnahmen. Vor diesem Hintergrund soll in diesem Diskussionspapier sowohl theoretisch als auch empirisch analysiert werden, wie die Champions League die Competitive Balance der Bundesliga beeinflusst. -- Participating in the UEFA Champions League enables clubs to generate tremendous revenues that they can invest in their squads. Officials of weaker clubs therefore complain about declining competitiveness of their teams and a decreasing competitive balance of the league altogether and they demand countermeasures. The goal of this discussion paper is to examine both theoretically and empirically how the Champions League really impacts the competitive balance of the Bundesliga.
    JEL: H44 H75 I23 J45 K39 L32 L38
    Date: 2014
  3. By: Michael Ehrmann; David-Jan Jansen
    Abstract: The end result of major sporting events has been shown to affect next-day stock returns through shifts in investor mood. By studying the soccer matches that led to the elimination of France and Italy from the 2010 FIFA World Cup, we show that mood-related pricing effects can materialize as sporting events unfold. We do this by using intraday stock prices for a firm cross-listed on the Paris and Milan stock exchanges. This strategy allows for a straightforward identification of pricing effects. During the soccer matches, stock prices in the country that eventually loses are lower by up to seven basis points. The probability of underpricing increases as elimination from the tournament becomes more likely.
    Keywords: Asset Pricing; Financial markets
    JEL: G02 G12 G14 G15
    Date: 2014

This nep-spo issue is ©2014 by Joao Carlos Correia Leitao. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.