Sports Tournament Design as a Source of Economic Impact (Through the Example of Russian Premier League)

In today's restricted environment, sport continues to face a lack of funding and to be perceived as an industry that can survive without support. Meanwhile, numerous studies have proven that sport is not about significant investments only, but also creates an economic impact. The aim of this work is to consider such a specific driver of economic impact as tournament design and evaluate the corresponding impact through the example of the Russian Premier League (RPL). The research hypothesis states that changing the design of the RPL tournament will lead to an increase in the total revenue of participating teams, in consumption in the host cities and a reduction in greenhouse gas emissions, which together will lay the foundation for an economic impact at the country level and for individual regions. The paper examines three reform scenarios, which differ in the assumptions made. The authors have developed a calculation model that quantifies the economic impact of these reforms. The main triggers are the attendance at RPL matches and its derivatives (the number of away fans, the distance traveled by away fans), as well as monetary metrics: ticket & travel costs, carbon unit costs. The impact is calculated as the difference between the results achieved in the current tournament design and in potential scenarios. The study showed that the current RPL design has significant potential for economic impact. Thus, the implementation of the Optimum scenario, which does not require additional calendar reserves, will create a positive economic impact in the amount of 479 million rubles. With additional calendar opportunities and implementing the “Maximum” scenario, the effect will be 932 million rubles. This study may be useful for managers of sports competitions, heads of regional and municipal authorities, as well as sports leagues and federations.