nep-spo New Economics Papers
on Sports and Economics
Issue of 2021‒06‒14
six papers chosen by
Humberto Barreto
DePauw University

  1. Soccer Clubs and Diminishing Returns: The Case of Paris Saint-Germain By Vincent (Vincent Peter) Hogan; Patrick Massey
  2. Monotonicity in sharing the revenues from broadcasting sports leagues By Gustavo Bergantiños; Juan D. Moreno-Ternero
  3. The Long-Run Effects of Sports Club Vouchers for Primary School Children By Jan Marcus; Thomas Siedler; Nicolas R. Ziebarth
  4. The Anti Flutie Effect: The Impact of Athletic Malfeasance on the University By Abigail Cormier; Austin F. Eggers; Peter A. Groothuis; Kurt W. Rutthoff
  5. Are Overconfident Players More Likely to Win Tournaments and Contests? By Luis Santos Pinto
  6. More goals, fewer babies? On national teams’ performance and birth rates By Luca Fumarco; Francesco Principe

  1. By: Vincent (Vincent Peter) Hogan; Patrick Massey
    Abstract: Paris Saint-Germain, one of France's top soccer clubs, was bought by Qatar Sports Investments (QSI) in 2011. Since then the club's expenditure has risen precipitously as have its victories. In this paper we ask whether this represents value for money. We find in fact, that the efficiency of PSG did not deteriorate following the takeover. However, while PSG operated close to the production frontier in terms of converting resources to points, it scored vastly more points than was necessary to win the league. We estimate that PSG spent e140m more than was necessary to win the French league in 2016/17. Since 2011, PSG is estimated to have overspent by up to e600m. This expenditure could be thought as being merely the price of creditable performance at a European Level. We show, however, that it has brought less success than would be expected.
    Keywords: Sports Finance; Productivity
    JEL: Z23 D24
    Date: 2021–04
  2. By: Gustavo Bergantiños (ECOSOT, Universidade de Vigo); Juan D. Moreno-Ternero (Department of Economics, Universidad Pablo de Olavide;)
    Abstract: We explore the implications of the principle of monotonicity in the problem of sharing the revenues from broadcasting sports leagues. We formalize different forms of this principle as several axioms for sharing rules in this setting. We show that, combined with two other basic axioms (equal treatment of equals and additivity), they provide axiomatic characterizations of focal rules for this problem, as well as families of rules compromising among them. These results highlight the normative appeal of the (focal) equal-split rule.
    Keywords: Game theory, resource allocation, broadcasting, monotonicity
    JEL: D63 C71 Z20
    Date: 2021
  3. By: Jan Marcus; Thomas Siedler; Nicolas R. Ziebarth
    Abstract: Starting in 2009, the German state of Saxony distributed sports club membership vouchers among all 33,000 third graders in the state. The policy’s objective was to encourage them to develop a long-term habit of exercising. In 2018, we carried out a large register-based survey among several cohorts in Saxony and two neighboring states. Our difference-in-differences estimations show that, even after a decade, awareness of the voucher program was significantly higher in the treatment group. We also find that youth received and redeemed the vouchers. However, we do not find significant short- or long-term effects on sports club membership, physical activity, overweightness, or motor skills.
    Keywords: physical activity, voucher, primary school, obesity, habit formation, objective health measures, school health examinations, windfall gains, crowd-out, taxpayer subsidies
    JEL: I12 I14 I18 I28 I38 Z28 H71
    Date: 2021
  4. By: Abigail Cormier; Austin F. Eggers; Peter A. Groothuis; Kurt W. Rutthoff
    Abstract: Collegiate sports programs are often characterized as the front porch of a university serving to publicize the institution and draw students to the door. We analyze if athletic malfeasance captured in NCAA sanctions, either a postseason tournament ban in men’s basketball or a postseason bowl ban in football, negatively affects the profile of the sanctioned university. Our findings suggest that bans lower the academic quality of students as measured by test scores and class rank. Bans also decrease the amount of alumni giving and increases the student acceptance rate at the infracting university. Surprisingly, the school’s peer ranking, in U.S. News and World Report, increases at a university following a ban. Our results demonstrate that impropriety by an athletics program serves as a negative signal to prospective students and alumni regarding the overall quality of the university, but does not appear to affect that institution’s peer evaluators’ perceptions. Key Words: Education, (Anti) Flutie-Factor, NCAA, Athletic Malfeasance
    JEL: Z2 I2
    Date: 2020
  5. By: Luis Santos Pinto
    Abstract: This paper investigates whether an overconfident player is more likely to win a competition against a rational player. The two players are identical, except that the overconfident player overestimates his productivity of effort and, as a consequence, his probability of winning. The competition can take the form of either a tournament or a contest. The paper shows that the overconfident player is the Nash winner (loser) of a tournament with monotonic best responses when his effort and overconfidence are complements (substitutes). The overconfident player is the Nash winner (loser) of a tournament with non-monotonic best responses when he is slightly (significantly) overconfident. In contrast, the overconfident player is always the Nash loser of a contest. The paper also discusses the welfare implications of overconfidence.
    Keywords: Overconfidence, Tournaments, Contests, Welfare
    JEL: D60 D69 D91
    Date: 2021–05
  6. By: Luca Fumarco (Tulane University); Francesco Principe (Erasmus School of Economics Tinbergen Institute)
    Abstract: Does national team performance boost birth rates? We compiled a unique dataset combining country-level monthly birth rates for 50 European countries, along 56 years, with measures of national teams’ performance in 27 international football events. We find that an increase in national teams’ performance in international cups is associated with a drop in birth rates nine months after the event. We hypothesize that these results might be explained by individuals’ time allocation choices.
    Keywords: football, sporting events, time allocation, birth rates, fertility
    JEL: I10 J10 J11 J13
    Date: 2021–06

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