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Gate-Sharing and Talent Distribution in the English Football League

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  • Terry Robinson
  • Robert Simmons

Abstract

Using a database of the movements of more than 2,000 professional footballers in the top two divisions of the English Football League between 1969 and 1995, this article examines the impact on talent distribution via the movement of players after abolition of gate revenue sharing in 1983. We compare the results with the predictions of the Walrasian and Nash theoretical models presented in the sports economics literature. Our key finding is that the termination of gate revenue sharing brought about increased rates of transfers of quality players towards top division teams. We also find that there is an increased probability that better quality players will be transferred within divisions to bigger teams. These results go against one of the main theoretical predictions of the sports economics literature - that gate sharing will have no effect on competitive balance. Instead, they offer support for models based on win maximisation rather than profit maximisation.

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  • Terry Robinson & Robert Simmons, 2014. "Gate-Sharing and Talent Distribution in the English Football League," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 21(3), pages 413-429, November.
    • Handle: RePEc:taf:ijecbs:v:21:y:2014:i:3:p:413-429
    DOI: 10.1080/13571516.2014.947705
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    References listed on IDEAS

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    2. Fort, Rodney & Maxcy, Joel & Diehl, Mark, 2016. "Uncertainty by regulation: Rottenberg׳s invariance principle," Research in Economics, Elsevier, vol. 70(3), pages 454-467.
    3. Marco Di Domizio & Raul Caruso, 2021. "Analisi Economica E Prospettive Del Progetto "Super League"," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, vol. 17(1), pages 85-107, luglio.
    4. Rudemarlyn Urdaneta & Juan C. Guevara-Pérez & Fernando Llena-Macarulla & José M. Moneva, 2021. "Transparency and Accountability in Sports: Measuring the Social and Financial Performance of Spanish Professional Football," Sustainability, MDPI, vol. 13(15), pages 1-16, August.
    5. Panagiotis Dimitropoulos, 2016. "Audit Selection in the European Football Industry under Union of European Football Associations Financial Fair Play," International Journal of Economics and Financial Issues, Econjournals, vol. 6(3), pages 901-906.
    6. Marco Di Domizio & Lorenzo Neri & Giambattista Rossi & Antonella Russo, 2019. "Sport O Business? Il Calcio-Mercato Si Rivela," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, vol. 15(2), pages 121-144, ottobre.
    7. Thadeu Gasparetto & Dmitry Mishchenko & Egor Zaitsev, 2023. "Factors influencing competitive balance across European football top tier leagues," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2068-2078, June.
    8. Mercedes Mareque & Angel Barajas & Francisco Lopez-Corrales, 2018. "The Impact of Union of European Football Associations (UEFA) Financial Fair Play Regulation on Audit Fees: Evidence from Spanish Football," IJFS, MDPI, vol. 6(4), pages 1-20, November.

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