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on Sports and Economics |
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Issue of 2016‒07‒30
three papers chosen by João Carlos Correia Leitão Universidade da Beira Interior |
| By: | Garcia del Barrio, Pedro; Pujol, Francesc |
| Abstract: | Sport talent and popularity are major assets on which some businesses develop their economic activities. Professional football is one of the markets that, being among the principal industries of entertainment, depend on the skills of players. This paper uses media value ratings to appraise the sport talent and potential economic contribution of players and teams in European football. The empirical analysis shows also that sport performance and attainments are keystone elements to procure visibility in the media and to attract potential revenues. The goal of this paper is twofold. Firstly, it investigates the factors that enhance exposure and media value of professional football clubs. The media value status and popularity are mainly driven by past and current sport performance. Besides, our media value indexes for teams and leagues, which are derived from individual appraisals, inform about their potential capacity to generate income. Secondly, the paper uses media value appraisals to address if they explain some sources of teams' revenues. The paper actually explores to what extent TV rights are in accordance to the share of interest that each club draws from the fans and the media. Among other results, we find a strong empirical relationship between media value scores and either total revenues or broadcasting revenues. The authors' empirical analysis also indicates that the broadcasting revenues in some of the top European domestic leagues were in the past below the level that according to their media value status one might expect. |
| Keywords: | European football,broadcasting revenues,media value,sport talent,productivity |
| JEL: | J24 J33 J71 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201636&r=spo |
| By: | Caruso, Raul; Di Domizio, Marco; Rossignoli, Domenico |
| Abstract: | This paper investigated the relationship between players’ wages and sport performance in the Italian top professional football league - Serie A. The analysis focused on 14 seasons from 2001/2002 to 2014/2015. Findings show that aggregate wage expenditure is a robust predictor of success for Italian professional football teams. We first exploited a fixed-effects panel data and eventually we have addressed the problem of endogeneity by providing a dynamic IV specification of the model. Based on the System-GMM framework, we employed a model including lagged terms of dependent variables and covariates as instruments to control for endogeneity as well as alternative exogenous instruments to control for geographical/environmental factors and for socio-economic factors that could be the actual predictors of performance through an indirect effect on payroll. |
| Keywords: | Italian serie A, football, soccer, talent, wages, sport performance |
| JEL: | J40 J49 L83 Z19 |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:72720&r=spo |
| By: | Marcus Noland (Peterson Institute for International Economics) |
| Abstract: | This Policy Brief presents forecasts of medal counts at the 2016 Summer Olympics in Rio de Janeiro, Brazil. Building on previously developed statistical models that analyze the correlations between Olympic success and socioeconomic variables, the models underlying these forecasts go further, adjusting for the distortions in the historical record created by large-scale boycotts (Moscow 1980, Los Angeles 1984) and doping. The latter consideration is critical to forecasting success in Rio insofar, as the forecasts are strongly influenced by performance at the immediately preceding Games. Subject to uncertainties over Russian participation and the possible impact of the Zika virus, the forecasts indicate that the United States is likely to continue to earn the greatest number of medals, but China is closing the medal gap. Brazil should get a boost from hosting the Games, but its home field advantage may not be as great as experienced by prior hosts. Slumping performance in Rio could add to Britain's post-Brexit malaise. |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:iie:pbrief:pb16-9&r=spo |