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Goal! Profit maximization and win maximization in football leagues

Author

Listed:
  • Pedro Garcia-del-Barrio

    (Universidad Internacional de Cataluna
    Universidad Pompeu-Fabra)

  • Stefan Szymanski

    (Tanaka Business School, Imperial College)

Abstract

In this paper we estimate the best responses of football clubs to the choices of other clubs in Spanish and English leagues over the period 1994-2004. We find that choices are more closely approximated by win maximization than by profit maximization in both the short term and the long term. We examine club characteristics that might explain variations in choices between Spanish clubs.

Suggested Citation

  • Pedro Garcia-del-Barrio & Stefan Szymanski, 2006. "Goal! Profit maximization and win maximization in football leagues," Working Papers 0621, International Association of Sports Economists;North American Association of Sports Economists.
    • Handle: RePEc:spe:wpaper:0621
    as

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    File URL: http://web.holycross.edu/RePEc/spe/GarciaSzymanski_Goal.pdf
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    References listed on IDEAS

    as
    1. Stefan Szymanski & Stefan Késenne, 2010. "Competitive Balance and Gate Revenue Sharing in Team Sports," Palgrave Macmillan Books, in: The Comparative Economics of Sport, chapter 7, pages 229-243, Palgrave Macmillan.
    2. Stefan KÉsenne, 2004. "Competitive Balance and Revenue Sharing," Journal of Sports Economics, , vol. 5(2), pages 206-212, May.
    3. David Romer, 2006. "Do Firms Maximize? Evidence from Professional Football," Journal of Political Economy, University of Chicago Press, vol. 114(2), pages 340-365, April.
    4. Lawrence M. Kahn, 2000. "The Sports Business as a Labor Market Laboratory," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 75-94, Summer.
    5. Ariel Rubinstein, 2006. "A Sceptic's Comment on the Study of Economics," Economic Journal, Royal Economic Society, vol. 116(510), pages 1-9, March.
    Full references (including those not matched with items on IDEAS)

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Newt Gingrich Calls For Public Ownership Of Professional Sports Teams
      by ? in Think Progress on 2014-05-02 23:15:11

    Citations

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    Cited by:

    1. Markus Lang & Martin Grossmann & Philipp Theiler, 2011. "The Sugar Daddy Game: How Wealthy Investors Change Competition in Professional Team Sports," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 167(4), pages 557-577, December.
    2. Martin Grossmann, 2015. "Evolutionarily Stable Strategies in Sports Contests," Journal of Sports Economics, , vol. 16(1), pages 108-121, January.
    3. Helmut Dietl & Egon Franck & Markus Lang & Alexander Rathke, 2010. "Organizational Differences between U.S. Major Leagues and European Leagues: Implications for Salary Caps," Working Papers 0122, University of Zurich, Institute for Strategy and Business Economics (ISU).
    4. Michela Pierini, 2011. "Diritti Tv E Competitive Balance Nel Calcio Professionistico Italiano," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, vol. 7(2), pages 87-113, September.
    5. Markus LANG & Alexander RATHKE & Marco RUNKEL, 2010. "The Economic Consequences Of Foreigner Rules In National Sports Leagues," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 31, pages 47-64.
    6. Orlov, Denis, 2015. "The effect of clubs’ bargaining power on football player’s transfer value," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 45-64.
    7. Eike Emrich & Markus Klein & Werner Pitsch & Christian Pierdzioch, 2012. "On the determinants of sporting success – A note on the Olympic Games," Economics Bulletin, AccessEcon, vol. 32(3), pages 1890-1901.
    8. Helmut Dietl & Egon Franck & Martin Grossmann & Markus Lang, 2009. "Contest Theory and its Applications in Sports," Working Papers 0105, University of Zurich, Institute for Strategy and Business Economics (ISU).
    9. Andrea Rey & Francesco Santelli, 2017. "The Relationship between Financial Ratios and Sporting Performance in Italy’s Serie A," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(12), pages 1-53, November.

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    More about this item

    Keywords

    soccer; football;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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