nep-spo New Economics Papers
on Sports and Economics
Issue of 2015‒01‒14
two papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. The Myth of Sports-Led Economic Development By Brad R. Humphreys
  2. The impact of the Bosman ruling on the market for native soccer players By Marcén, Miriam

  1. By: Brad R. Humphreys (West Virginia University, College of Business and Economics)
    Abstract: Public subsidization of professional sports facilities has been prevalent for the past 40 years in the United States. These subsidies are allegedly justified by economic benefits owing from sports facilities, including the creation of new jobs, new tax revenues and higher income. Recent research suggests that cities have not benefited economically from the boom in professional stadium and arena construction; cities that built new sports facilities over the period 1969-1997 have experienced lower inflation adjusted income per person than those where no new facilities were built. This research calls into question the justification for public subsidization of professional sports facilities.
    Date: 2014–12
  2. By: Marcén, Miriam
    Abstract: This paper examines whether the Bosman ruling plays an important role in the market for native soccer players. Through the abolition of transfer fees after the expiration of contracts, as well as the liberalization of the migration of professional soccer players within the European Union, the Bosman ruling could negatively impact the number of national players participating in their national leagues. To explore this issue, we use data on the First Division of the Spanish League for the seasons 1980/1981 to 2011/2012. Results point to a decline in the number of native Spanish players after the Bosman ruling, although the impact does not appear to be permanent. This finding is consistent with the use of different subsamples, and to the introduction of controls for unobserved characteristics varying at the team level or over time, and to observed characteristics such as GDP per capita, population, the age of players, and potential TV revenues. This work also explores the impact of other, similar legislative changes, such as the Kolpak case and the Cotonou agreement, which appeared in the post-Bosman period. In addition, we incorporate empirical evidence of the potential impact that the Bosman ruling may have on the performance of the Spanish players. Our findings indicate that the Bosman case has had a negative impact on the number of minutes played and on the participation of national players in the first team, suggesting that an average Spanish player is less important to his team.
    Keywords: Bosman ruling, Spanish League, National Labor Market, Kolpak-Nihat-Simutenkov cases, Cotonou agreement, TV rights.
    JEL: F22 J22 K19 L83
    Date: 2014–12–12

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