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The Peculiar International Economics Of Professional Football In Europe

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  • Stefan Kesenne

Abstract

Most European industries have a history of gradually opening international markets, with growing international capital mobility and increasing free trade of goods and services. However, although labour markets have been officially deregulated as well, there is much less international mobility of labour, mainly due to cultural and social barriers. An apparent exception to the rule been the industry of professional team sports in Europe, where the Bosman verdict in 1995 has freed the European player market while the product market was still nationally protected. In this paper, we try to derive the consequences of this deviant evolution in the European sports industry, concentrating on the competitive balance within and between national leagues and on the player salary levels, using a simplified ‘two country–four team’ model with quadratic revenue functions.

Suggested Citation

  • Stefan Kesenne, 2007. "The Peculiar International Economics Of Professional Football In Europe," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(3), pages 388-399, July.
    • Handle: RePEc:bla:scotjp:v:54:y:2007:i:3:p:388-399
    DOI: 10.1111/j.1467-9485.2007.00421.x
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    References listed on IDEAS

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    1. Haan, Marco & Koning, Ruud H. & Witteloostuijn, Arjen van, 2002. "Market forces in European soccer," CCSO Working Papers 200211, University of Groningen, CCSO Centre for Economic Research.
    2. repec:dgr:rugccs:200211 is not listed on IDEAS
    3. repec:dgr:rugsom:02f18 is not listed on IDEAS
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