nep-spo New Economics Papers
on Sports and Economics
Issue of 2017‒10‒01
five papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. 2018 FIFA World Cup qualification can be manipulated By Csató, László
  2. Governance of Professional Sport Leagues: Towards a Convergence Between North America and Europe? By Gilles Paché
  3. Stock market reactions to FIFA World Cup announcements: An event study By Amélie Charles; Olivier Darné
  4. March Madness: NCAA Tournament Participation and College Alcohol Use By Dustin R. White; Benjamin W. Cowan; Jadrian Wooten
  5. The Impact of Football Attendance on Tourist Expenditures for the United Kingdom By Rudkin, Simon; Sharma, Abhijit

  1. By: Csató, László
    Abstract: In the European section of the 2018 FIFA World Cup qualification, 13 national teams, which are members of the Union of European Football Associations (UEFA), can qualify for the final competition. The 54 teams are divided into nine groups to play home-and-away round-robin matches in 10 matchdays. The winners of each group qualify, while the eight best second-placed teams advance to play-offs such that the four winners of play-offs also qualify. Ranking of second-placed teams differs from ranking in groups since group matches against the sixth-placed team are discarded. It is shown that this feature opens a way for manipulation: it may happen that a team is eliminated if it wins in the last matchday of group stage, but it advances to play-offs by playing a draw, provided that all other results are fixed. An example reveals that this situation might even occur in October 2017, after eight matchdays are already played in the qualification. Furthermore, by adjusting the result of only two matches played before October 2017 with an addition of one goal each, a team can strictly prefer a draw over a win in its last match as the former may advance it to play-offs, but the latter certainly leads to its elimination.
    Keywords: OR in sport, tournament ranking, football, soccer, 2018 FIFA World Cup, UEFA, axiomatic approach, manipulation
    JEL: C44 D71
    Date: 2017–09–16
  2. By: Gilles Paché (CRET-LOG - Centre de Recherche sur le Transport et la Logistique - AMU - Aix Marseille Université)
    Abstract: The governance of professional sports clubs is an increasingly studied research subject. This can be attributed to the very high economic and financial stakes, which often overshadows the sporting stakes. Two governance models coexist: (1) the European model, based on the competition between clubs to individually increase the revenues of each club; (2) the North American model, based on a complex regulatory system to collectively increase the revenues of the whole franchise. This paper shows the founding principles of each model and underlines, by considering the case of European football (soccer), that a convergence of the two governance models is likely in the future. The North American model of collective governance of a franchise could become necessary in Europe, which would completely transform the competitive landscape of professional clubs. It would therefore demonstrate the superiority of collective governance with a view to creating value for clubs of a same franchise.
    Keywords: collective action,competition,governance,professional sport leagues
    Date: 2015–11–10
  3. By: Amélie Charles (Rn'B Lab - Research Center of Audencia - Centrale Nantes - Audencia Business School); Olivier Darné (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - UN - Université de Nantes)
    Abstract: This article examines stock market reactions in countries competing to hold the FIFA World Cups around the time of the winning bid announcements. We analyze the announcement effects of winning and losing, beginning with 1994 FIFA World Cup announced in 1988, up until the announcement of the 2022 FIFA World Cup in 2010, with 18 countries, including of a mixture of developing and developed countries.. We observe no significant positive stock price reaction at the announcement dates for the winners, except for Qatar for the 2022 FIFA World Cup. However, we find significant cumulative abnormal returns for some countries. For the losing bidders, the results show significant negative abnormal return at the announcement dates for Morocco and Egypt for the 2010 FIFA World Cup, and again for Morocco for the 1998 FIFA World Cup. We also find that, on average, the losing bidders display significant negative CARs.
    Keywords: Market reactions, FIFA World cup, Event study
    Date: 2016
  4. By: Dustin R. White; Benjamin W. Cowan; Jadrian Wooten
    Abstract: We examine the impact of the NCAA Men’s Basketball Tournament on college students’ drinking behavior using a nationally representative sample of American institutions. While success in intercollegiate athletics may augment the visibility of a university to prospective students and thereby benefit the school, it may also have a negative effect on the current student body by influencing risky behavior, especially the consumption of alcohol commonly associated with game day festivities. Using the Harvard School of Public Health College Alcohol Study (CAS), we find that a school’s participation in the NCAA Tournament is associated with a 30% increase in binge drinking and a 9% increase in self-reported drunk driving by male students at that school. The results suggest that this increase is not offset by less alcohol use before or after the tournament (intertemporal substitution) but instead seems to represent a net increase in the amount of alcohol consumed by students at participating schools.
    JEL: I12 I23
    Date: 2017–09
  5. By: Rudkin, Simon; Sharma, Abhijit
    Abstract: We employ unconditional quantile regression with region of origin fixed effects, whereby we find that attending live football matches significantly increases expenditures by inbound tourist in the UK, and surprisingly we find that such effects are strongest for those who overall spend the least. Higher spending individuals spend significantly more than those who do not attend football matches, even when such individuals are otherwise similar. We analyse the impact of football attendance across the tourism expenditure distribution which is a relatively neglected aspect within previous research.
    Keywords: tourist expenditure, football attendance, unconditional quantile regression
    JEL: C5 D1
    Date: 2017–09–14

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