nep-spo New Economics Papers
on Sports and Economics
Issue of 2021‒07‒12
five papers chosen by
Humberto Barreto
DePauw University

  1. Does Compliance with Financial Fair Play Rules Improve the Football Clubs' Sport Performance and Their Chances to Reach UEFA Competitions? By Garcia-del-Barrio, Pedro; Agnese, Pablo
  2. La recherche en Management du Sport en « francophonie » : L’avènement d’un écosystème By Patrick Bouchet
  3. Willingness to pay for COVID-19 environmental health risk reductions in consumption: Evidence from U.S. professional sports By Brad R. Humphreys; Gary A. Wagner; John C. Whitehead; Pamela Wicker
  4. Scoring Benefits to Eastward Travel in the NBA By James Hasbany; Ryland Burke; Lawrence Watson; Jacqueline Doremus
  5. Machine learning in the prediction of flat horse racing results in Poland By Piotr Borowski; Marcin Chlebus

  1. By: Garcia-del-Barrio, Pedro (University of Navarra); Agnese, Pablo (UIC Barcelona)
    Abstract: This paper evaluates the European football clubs' compliance with UEFA Financial Fair Play (FFP) regulations and the effect of financial stability on sport achievements. The empirical analysis uses data of teams competing in the 1st division of four top domestic leagues (Premier League, La Liga, Serie A, and Ligue 1) over the seasons 2009/10 to 2015/16. We control for team quality through the annual wages (in quadratic form) and use the Wage-to-Revenue (WRR) ratio as a proxy variable to measure how close the clubs meet the break-even requirements. Our results reveal that greater financial responsibility implies better sport performance and higher chances to qualify for the Champions and Europa Leagues.
    Keywords: professional football, financial fair play, competitive balance, wage-to-revenue ratios
    JEL: D22 J24 J33
    Date: 2021–06
  2. By: Patrick Bouchet (UFR Sciences du Sport (STAPS) (Université de Bourgogne) - UB - Université de Bourgogne)
    Abstract: This paper aims to synthesize research on the Management of Sports Organizations (MOS) in France. Three parts structure this voluntarily simplifying contribution, very personal and collective at the same time through the direct and indirect contributions of many researchers. First of all, two historical parts between the 1960s and the 2000s provide a first disciplinary and then thematic perspective in order to make a French-speaking retrospective of the dynamics of scientific production. A last part in the form of a conclusion and an opening seeks to characterize the recent dynamics of MOS research (specialization, interaction, diversification) according to disciplines and/or objects of study. From this point of view, it constitutes a call for contributions that could be added progressively through the electronic format of the S2MS journal: Management & Organisations du Sport.
    Keywords: Management,research,sports,sports organizations
    Date: 2021–01–18
  3. By: Brad R. Humphreys; Gary A. Wagner; John C. Whitehead; Pamela Wicker
    Abstract: The COVID-19 pandemic caused substantial economic changes. The airborne transmission of the coronavirus increased the environmental health risks associated with many activities that entailed little risk in the pre-pandemic period, including workplace risks and risks faced by consumers. While a large literature estimates local tradeoffs between money and reduced risk of negative health outcomes in many settings, little empirical evidence addresses consumer willingness to pay for reduction in environmental health risks associated with coronavirus transmission. We estimate professional sports fans’ willingness to pay (WTP) for reduced likelihood of coronavirus infection through mask and social distancing policies at games using a stated preference approach. Regression results based on a latent class logit model using survey data collected from 1,391 fans of professional sports teams in five large U.S. metropolitan areas indicate increased attendance likelihood if the venue requires masks and limits attendance to below capacity. Latent class logit models indicate significant heterogeneity in WTP across risk scenarios and sports. We characterize the types of professional sports fan as casual fans who prefer a mask requirement but are indifferent to stadium and arena capacity, rabid fans who are anti-maskers and indifferent to capacity and fans who only have a positive WTP when there is a mask requirement and low stadium/arena capacity (i.e., opportunities for the greatest amount of social distancing). Key Words: Discrete choice experiment; Stated preferences; Willingness-to-pay; Environmental health risk
    Date: 2021
  4. By: James Hasbany (California Polytechnic State University); Ryland Burke (California Polytechnic State University); Lawrence Watson (Ernst & Young); Jacqueline Doremus (Department of Economics, California Polytechnic State University)
    Abstract: Travel across time zones may affect player scoring through their circadian rhythm. We test how team travel affects team scoring for the US National Basketball Association from 2014-2018, a period that coincides with the start of a new game scheduler. Next, we test whether a collective bargaining agreement with schedule restrictions protecting player rest changed the relationship between travel and scoring statistics. We find eastward travel increases scoring via three-pointers and field goals. The 2017 collective bargaining agreement mitigates the eastward travel benefit on scoring and increases scoring overall, suggesting improved fairness and potential benefits for players and fans.
    Keywords: NBA, basketball, travel, circadian rhythm, time zones
    JEL: Z2 L83
    Date: 2021
  5. By: Piotr Borowski (Faculty of Economic Sciences, University of Warsaw); Marcin Chlebus (Faculty of Economic Sciences, University of Warsaw)
    Abstract: Horse racing was the source of many researchers considerations who studied market efficiency and applied complex mathematic formulas to predict their results. We were the first who compared the selected machine learning methods to create a profitable betting strategy for two common bets, Win and Quinella. The six classification algorithms under the different betting scenarios were used, namely Classification and Regression Tree (CART), Generalized Linear Model (Glmnet), Extreme Gradient Boosting (XGBoost), Random Forest (RF), Neural Network (NN) and Linear Discriminant Analysis (LDA). Additionally, the Variable Importance was applied to determine the leading horse racing factors. The data were collected from the flat racetracks in Poland from 2011-2020 and described 3,782 Arabian and Thoroughbred races in total. We managed to profit under specific circumstances and get a correct bets ratio of 41% for the Win bet and over 36% for the Quinella bet using LDA and Neural Networks. The results demonstrated that it was possible to bet effectively using the chosen methods and indicated a possible market inefficiency.
    Keywords: horse racing prediction, racetrack betting, Thoroughbred and Arabian flat racing, machine learning, Variable Importance
    JEL: C53 C55 C45
    Date: 2021

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