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Live Broadcasting, Gate Revenue, and Football Club Performance: Some Evidence

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  • Adam Cox

Abstract

This paper presents new evidence concerning the main argument of the English Premier League for collective arrangements in selling television broadcast rights. Matches that are broadcast live on television can be considered as a substitute for watching at the stadium. New panel-data show that broadcasting live has a small negative effect on gate revenue for the best performing clubs and a much larger effect for the worst performing clubs. However, the marginal cost is outweighed by the marginal revenue, concluding that restrictions on quantity stemming from collective arrangements are detrimental to the consumers, broadcasters, and clubs themselves.

Suggested Citation

  • Adam Cox, 2012. "Live Broadcasting, Gate Revenue, and Football Club Performance: Some Evidence," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 19(1), pages 75-98, February.
    • Handle: RePEc:taf:ijecbs:v:19:y:2012:i:1:p:75-98
    DOI: 10.1080/13571516.2012.643668
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    References listed on IDEAS

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    1. B Buraimo & R Simmons, 2006. "Market size and attendance in English Premier League football," Working Papers 574562, Lancaster University Management School, Economics Department.
    2. repec:lan:wpaper:3983 is not listed on IDEAS
    3. repec:lan:wpaper:3698 is not listed on IDEAS
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    Cited by:

    1. Babatunde Buraimo & Rob Simmons, 2015. "Uncertainty of Outcome or Star Quality? Television Audience Demand for English Premier League Football," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 22(3), pages 449-469, November.
    2. Garcia del Barrio, Pedro & Pujol, Francesc, 2016. "Broadcasting revenues and media value in European football," Economics Discussion Papers 2016-36, Kiel Institute for the World Economy (IfW Kiel).
    3. Stefan Szymanski, 2017. "Entry into exit: insolvency in English professional football," Scottish Journal of Political Economy, Scottish Economic Society, vol. 64(4), pages 419-444, September.
    4. Geissler, Dominik & Beiderbeck, Daniel & Schmidt, Sascha L. & Schreyer, Dominik, 2024. "Emerging technologies and shifting consumer motives: Projecting the future of the top-tier sports media product," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    5. Adam Cox, 2018. "Spectator Demand, Uncertainty of Results, and Public Interest," Journal of Sports Economics, , vol. 19(1), pages 3-30, January.
    6. Marcos Almeida & Ricardo Coelho & Denise Oliveira & Altair Camargo & Pedro Savioli, 2020. "Sales-based Brand Equity as a Performance Driver in ‘The Country of Soccer," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 24(2), pages 134-150.
    7. Christian Gjersing Nielsen & Rasmus K. Storm & Tor Georg Jakobsen, 2019. "The impact of English Premier League broadcasts on Danish spectator demand: a small league perspective," Journal of Business Economics, Springer, vol. 89(6), pages 633-653, August.
    8. Paul Downward, 2014. "English professional football," Chapters, in: John Goddard & Peter Sloane (ed.), Handbook on the Economics of Professional Football, chapter 17, pages 277-297, Edward Elgar Publishing.
    9. Stefan Szymanski, 2012. "Insolvency in English professional football: Irrational Exuberance or Negative Shocks?," Working Papers 1202, International Association of Sports Economists;North American Association of Sports Economists.
    10. Iuliia Naidenova & Petr Parshakov & Sofiia Paklina, 2020. "Determinants of Football Fans’ Happiness: Evidence from Facial Emotion Recognition," Journal of Happiness Studies, Springer, vol. 21(3), pages 1103-1116, March.

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