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Should organizing premier-level European football be a monopoly? And who should run it? - An economists' perspective

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  • Budzinski, Oliver
  • Feddersen, Arne

Abstract

The controversy around the breakaway European Super League, set to conquer the UEFA Champions League, and the surrounding antitrust proceedings revive the academic discussion about the monopoly power of sport-internal governing bodies (like the UEFA), the justification for and limits of their powers, and potential abuses of their power. Against this background, we discuss how much monopoly is unavoidable in premier-level European football and how its powers can be limited and, thus, scope and incentives for power abuse may be reduced. We particularly find that championship management can be periodically assigned to third-parties (like the Super League organizers) by tender procedures, thus, creating a periodical competition for the market, fueling innovation incentives and strengthening the influence of fans' preferences.

Suggested Citation

  • Budzinski, Oliver & Feddersen, Arne, 2022. "Should organizing premier-level European football be a monopoly? And who should run it? - An economists' perspective," Ilmenau Economics Discussion Papers 166, Ilmenau University of Technology, Institute of Economics.
    • Handle: RePEc:zbw:tuiedp:166
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    References listed on IDEAS

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    Cited by:

    1. Budzinski, Oliver & Feddersen, Arne & Kunz-Kaltenhäuser, Philipp, 2022. "Demand for TV broadcasts of UEFA Champions League games in Danish television - The impact of uncertainty of outcome, stardom, and local heroes," Ilmenau Economics Discussion Papers 165, Ilmenau University of Technology, Institute of Economics.

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    More about this item

    Keywords

    sports economics; Super League; UEFA Champions League; monopoly; marketpower; sport associations; rival leagues;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L30 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - General
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • Z20 - Other Special Topics - - Sports Economics - - - General

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