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A winner’s curse in the bidding process for broadcasting rights in football? The cases of the French and UK markets

Author

Listed:
  • Antoine Feuillet

    (CesamS - Centre d'étude sport et actions motrices - UNICAEN - Université de Caen Normandie - NU - Normandie Université)

  • Nicolas Scelles

    (Manchester Metropolitan University Business School - MMU - Manchester Metropolitan University)

  • Christophe Durand

    (CesamS - Centre d'étude sport et actions motrices - UNICAEN - Université de Caen Normandie - NU - Normandie Université)

Abstract

The winner's curse is a well-known phenomenon in the auction theory. The main aim of this article is to verify its existence in football broadcasting rights. The underlying objective is to assess whether some indices of this situation are verified and can cause a winner's curse. The methodology is based on the application of Andreff (2014)'s six indices and a seventh index(disappointment)to the domestic markets for broadcasting rights of the French and English football leagues. These two markets have seen an increase in the number of packages offered to broadcasters, with the possibility of several ‘winners'. The paper shows that the winner of the major packages in the auction is not cursed. The curse is more likely to happen for the second mover. As such, the paper suggests a practical recommendation for broadcasters interested in football rights: win the best package or keep away.

Suggested Citation

  • Antoine Feuillet & Nicolas Scelles & Christophe Durand, 2017. "A winner’s curse in the bidding process for broadcasting rights in football? The cases of the French and UK markets," Post-Print hal-01935541, HAL.
    • Handle: RePEc:hal:journl:hal-01935541
    DOI: 10.1080/17430437.2018.1505869
    Note: View the original document on HAL open archive server: https://hal.science/hal-01935541
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    References listed on IDEAS

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