Gerrard, B orcid.org/0000-0002-5078-8911 and Kringstad, M (2022) The multi-dimensionality of competitive balance: evidence from European football. Sport, Business and Management: An International Journal, 12 (4). pp. 382-402. ISSN 2042-678X
Abstract
Purpose:
The purpose of this paper is to address the problem of designing league regulatory mechanisms given the multi-dimensionality of competitive balance and the proliferation of empirical measures.
Design/methodology/approach:
A three-stage approach is adopted. Firstly, a taxonomy of empirical measures of competitive balance is proposed, identifying two fundamental dimensions – win dispersion and performance persistence. Secondly, a simple two-team model of league competitive balance is used to explore the dispersion–persistence relationship. Third, correlation and regression analysis of seven empirical measures of competitive balance for the 18 best-attended top-tier domestic football leagues in Europe over the 10 seasons, 2008–2017, are used to (1) validate the proposed categorisation of empirical measures into two dimensions; and (2) investigate the nature of the dispersion–persistence relationship across leagues.
Findings:
The simple model of league competitive balance implies a strong positive dispersion–persistence relationship when persistence effects increase for big-market teams relative to those for the small-market teams. However, the empirical evidence indicates that while leagues such as the Spanish La Liga exhibit a strong positive dispersion–persistence relationship, other leagues show little or no relationship, and some leagues, particularly, the English Premier League and top-tier divisions in Belgium and Netherlands, have a strong negative dispersion–persistence relationship. The key policy implication for leagues is the importance of understanding the direction and impact of dispersion and persistence effects on the demand for league products.
Originality/value:
The variability in the strength and direction of the dispersion–persistence relationship across leagues is an important result that undermines the “one-size-fits-all” approach to designing league regulatory mechanisms.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2021, Emerald Publishing Limited. This is an author produced version of an article published in Sport, Business and Management. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Competitive balance; League regulatory mechanisms; Performace persistence; Professional team sports league; Uncertainty of outcome; Win dispersion |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Management Division (LUBS) (Leeds) > Management Division Decision Research (LUBS) |
Depositing User: | Symplectic Publications |
Date Deposited: | 10 Sep 2021 09:06 |
Last Modified: | 21 Dec 2022 09:39 |
Status: | Published |
Publisher: | Emerald |
Identification Number: | 10.1108/SBM-04-2021-0054 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:178022 |