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The Effect of League Design on Club Revenues in the Scottish Premier League

Author

Listed:
  • Barry Reilly

    (University of Sussex)

  • Robert Witt

    (University of Surrey
    London School of Economics)

Abstract

This paper exploits a sharp regression discontinuity design (RDD) to causally identify the impact of the league ‘split’ on Scottish Premier League (SPL) club revenues. The data used are drawn from 21 completed seasons in which the institutional arrangement has been in place in Scotland’s elite tier of professional soccer. The empirical analysis fails to detect strong or persuasive statistical evidence that the league design substantially impacts the revenue distribution of the participating clubs. Given the league design is found to be close to financially-neutral for the clubs most directly affected by the ‘split’, it is not viewed as a catalyst in driving financial inequality within the league.

Suggested Citation

  • Barry Reilly & Robert Witt, 2024. "The Effect of League Design on Club Revenues in the Scottish Premier League," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 50(1), pages 1-28, January.
    • Handle: RePEc:pal:easeco:v:50:y:2024:i:1:d:10.1057_s41302-023-00260-3
    DOI: 10.1057/s41302-023-00260-3
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    References listed on IDEAS

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    More about this item

    Keywords

    SPL ‘split’; Financial revenues sharp RDD;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • Z20 - Other Special Topics - - Sports Economics - - - General

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