Revenue divergence and competitive balance in a divisional sports league

Dobson, S. and Goddard, J., 2004. Revenue divergence and competitive balance in a divisional sports league. Scottish Journal of Political Economy, 51 (3), pp. 359-376. ISSN 0036-9292

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The North American model of resource allocation in professional sports leagues is adapted for English (association) football. The theoretical relationship between revenue and competitive balance is shown to be robust with respect to changes in teams’ objectives and labour market conditions. Empirical revenue functions are reported for 1926-1999. These indicate a shift in the composition of demand favouring big-city teams and an increase in the sensitivity of revenue to performance. An analysis of match results in the FA Cup competition suggests an increase in competitive imbalance between teams at different levels of the league’s divisional hierarchy, as the theory suggests.

Item Type: Journal article
Publication Title: Scottish Journal of Political Economy
Creators: Dobson, S. and Goddard, J.
Publisher: Blackwell Publishing
Date: 2004
Volume: 51
Number: 3
ISSN: 0036-9292
Rights: © 2004 John Wiley & Sons, Inc. The definitive version is available at
Divisions: Schools > Nottingham Business School
Record created by: EPrints Services
Date Added: 09 Oct 2015 10:52
Last Modified: 23 Aug 2016 09:12

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