Skip to content
Licensed Unlicensed Requires Authentication Published by De Gruyter June 17, 2014

Between-seasons competitive balance in European football: review of existing and development of specially designed indices

  • Vasileios Manasis EMAIL logo and Ioannis Ntzoufras

Abstract

Competitive balance is a key issue for any professional sport league substantiated by its effect on demand for league games or other associated products. This work focuses on the measurement of between-seasons competitive balance, the longest time-wise dimension, which captures the relative quality of teams across seasons. The review of the existing indices examines their applicability in the context of European football. Given that domestic championships are multi-prized tournaments, as opposed to the more common North American unitary structure with a single prize, a set of specially designed indices that capture the complex structure of European football are introduced. An empirical investigation, using data from the English Premier League, further elucidates the main features of all appropriate indices by exploring their value and trend. It may be inferred that between-seasons competitive balance in England worsens through seasons mainly due to the very low ranking mobility of the top teams through seasons.


Corresponding author: Vasileios Manasis, Department of Statistics, Athens University of Economics and Business, Patision 76 Athens 10434, Greece, e-mail:

  1. 1

    The seasonal dimension refers to the relative quality of teams in the course of a particular season.

  2. 2

    Even though they do not refer to Haan et al. (2007), Mizak, Neral and Stair (2007) propose the adjusted churn, which is fundamentally the same as the normalised index of dynamics.

  3. 3

    For instance, the first two teams can be equally weighted by replacing DNt,1 by DNt,2 in (19).

  4. 4

    The decline in competitive balance noticed in aG, is attributed to the fact the index is calculated using the number of teams entering the top five positions in a five seasons span.

  5. 5

    A partial index provides information for a few teams, whereas a summary index provides information for all the teams that make up the league.

Appendix

Empirical results from Bundesliga and the French League 1 further elucidate the key points addressed on the paper.

From Figure 3A and B, it can be verified that most of the partial indices display high values indicative of unbalanced tournaments across seasons in both Bundesliga and League 1. There is a concern about the champion’s dynamic domination especially in League 1 during the last decade. On the other hand, the effectiveness of the promotion-relegation rule as a regulatory mechanism is not as notable as in the Premier League. Based on the comprehensive SDNt,KI index, a significant trend of third degree is found only for Bundesliga in which competitive balance declines during the last decade in a similar pattern as in the Premier League.

Figure 3 (A) Moving averages of lag five for partial indices in Bundesliga from 1963/1964 to 2008/2009.(B) Moving averages of lag five for partial indices in League 1 from 1959/1960 to 2008/2009.
Figure 3

(A) Moving averages of lag five for partial indices in Bundesliga from 1963/1964 to 2008/2009.

(B) Moving averages of lag five for partial indices in League 1 from 1959/1960 to 2008/2009.

References

Balfour, A. and P. Porter. 1991. “The Reserve Clause in Professional Sports: Legality and Effect on Competitive Balance.” Labor Law Journal 42(1):8–18.Search in Google Scholar

Butler, M. R. 1995. “Competitive Balance in Major League Baseball.” The American Economist 39(2):46–52.10.1177/056943459503900205Search in Google Scholar

Buzzacchi, L., S. Szymanski, and T. Valletti. 2003. “Equality of Opportunity and Equality of Outcome: Open Leagues, Closed Leagues and Competitive Balance.” Journal of Industry, Competition and Trade 3(3):167–186.10.1023/A:1027464421241Search in Google Scholar

Close, P. 2010. “Olympiads as Mega-events and the Pace of Globalization: Beijing 2008 in Context.” The International Journal of the History of Sport 27(16–18):2976–3007.10.1080/09523367.2010.508303Search in Google Scholar

Daly, G. and W. J. Moore. 1981. “Externalities, Property Rights and the Allocation of Resources in Major League Baseball.” Economic Inquiry 19:77–95.10.1111/j.1465-7295.1981.tb00604.xSearch in Google Scholar

Eckard, W. 1998. “The NCAA Cartel and Competitive Balance in College Football.” Review of Industrial Organization 13:347–369.10.1023/A:1007713802480Search in Google Scholar

Eckard, W. 2001a. “Baseball’s Blue Ribbon Economic Report: Solutions in Search of a Problem.” Journal of Sports Economics 2(3):213–227.10.1177/152700250100200302Search in Google Scholar

Eckard, W. 2001b. “Free Agency, Competitive Balance, and Diminishing Returns to Pennant Contention.” Economic Inquiry 39(3):430–443.Search in Google Scholar

El-Hodiri, M. and J. Quirk. 1971. “An Economic Model of a Professional Sports League.” The Journal of Political Economy 79(6):1302–1319.10.1086/259837Search in Google Scholar

Fizel, J. 1997. “Free Agency and Competitive Balance.” In Stee-rike Four! What’s Wrong with the Business of Baseball?, edited by D. Marburger. Westport, CT: Praeger.Search in Google Scholar

Fort, R. and J. Maxcy. 2003. “Competitive Balance in Sports League: An Introduction.” Journal of Sports Economics 4(2):154–160.10.1177/1527002503004002005Search in Google Scholar

Gerrard, B. 2004. “Still Up for Grabs? Maintaining the Sporting and Financial Viability of European Club Soccer.” In International Sports Economics Comparisons, edited by R. Fort and J. Fizel. Westport, CT: Praeger Publishers.Search in Google Scholar

Groot, L. 2008. Economics, Uncertainty and European Football: Trends in Competitive Balance. Northampton: Edward Elgar Publishing Limited.Search in Google Scholar

Haan, M., R. H. Koning, and A. van Witteloostuijn. 2007. “Competitive Balance in National European Soccer Competitions.” In Statistical Thinking in Sports, edited by J. Albert and R. H. Koning. Boca Raton, FL: CRC Press.10.1201/9781584888697.ch4Search in Google Scholar

Hadley, L., J. Cieka, and A. C. Krautmann. 2005. “Competitive Balance in the Aftermath of the 1994 Players’ Strike.” Journal of Sports Economics 6(4):379–389.10.1177/1527002504267435Search in Google Scholar

Humphreys, B. R. 2002. “Alternative Measures of Competitive Balance in Sports Leagues.” Journal of Sports Economics 3(2):133–148.10.1177/152700250200300203Search in Google Scholar

James, B. 2003. The New Bill James Historical Baseball Abstract. New York: Free Press.Search in Google Scholar

Kamerschen, D. R. and N. Lam. 1975. “A Survey of Measures of Market Power.” Rivista Internazionalle di Scienze Economiche e Commercialli 22:1131–1156.Search in Google Scholar

Kaplan, A., J. Nadeau, and N. O’Reilly. 2011. “The Hope Statistic as an Alternative Measure of Competitive Balance.” The International Journal of Sport Finance 6(2):170–184.Search in Google Scholar

Krautmann, A. C. and L. Hadley. 2006. “Dynasties versus Pennant Races: Competitive Balance in Major League Baseball.” Managerial and Decision Economics 27:287–292.10.1002/mde.1260Search in Google Scholar

Kringstad, M. and B. Gerrard. 2007. “Beyond Competitive Balance.” In International Perspectives on the Management of Sports, edited by M. M. Parent and T. Slack. Burlington, MA: Elsevier Academic Press.10.1016/B978-0-7506-8237-4.50014-5Search in Google Scholar

Leeds, M. A. and P. von Allmen. 2013. The Economics of Sports 3rd Ed. The Pearson series in Economics, Boston, MA: Prentice Hall.10.4324/9781315167947-1Search in Google Scholar

Lenten, L. 2009. “Towards a New Dynamic Measure of Competitive Balance: A Study Applied to Australia’s Two Major Professional ‘Football’ Leagues.” Economic Analysis & Policy 39(3): 407–428.10.1016/S0313-5926(09)50036-7Search in Google Scholar

Manasis, V., V. Avgerinou, I. Ntzoufras, and J.J. Reade. 2013. “Quantification of competitive balance in European football: development of specially designed indices.” IMA Journal of Management Mathematics 24:363–375.10.1093/imaman/dps014Search in Google Scholar

Maxcy, J. 2002. “Rethinking restrivctions in player mobility in Major League Baseball.” Contemporary Economic Policy 20(2):145–159.10.1093/cep/20.2.145Search in Google Scholar

Maxcy, J. and M. Mondello. 2006. “The Impact of Free Agency on Competitive Balance in North American Professional Team Sports Leagues.” Journal of Sport Management 20:345–365.10.1123/jsm.20.3.345Search in Google Scholar

Michie, J. and C. Oughton. 2004. Competitive Balance in Football: Trends and Effects. London: The Sports Nexus.Search in Google Scholar

Mizak, D., J. Neral, and A. Stair. 2007. “The Adjusted Churn: An Index of Competitive Balance for Sports Leagues Based on Changes in Team Standings Over Time.” Economics Bulletin 26(3):1–7.Search in Google Scholar

O’Reilly, N., A. Kaplan, R. Rahinel, and J. Nadeau. 2008. “If you Can’t Win, Why Should I Buy a Ticket? Hope, Fan Welfare, and Competitive Balance.” International Journal of Sports Finance 3:42–57.Search in Google Scholar

Quirk, J. and R. Fort. 1997. Pay Dirt: The Business of Professional Team Sports. Princeton, New Jersey: Princeton University Press.Search in Google Scholar

Reilly, T. and M. Williams. 2005. “Introduction to Science and Soccer.” In Science and Soccer, edited by T. Reilly and M. Williams. New York, NY: Routledge.Search in Google Scholar

Rottenberg, S. 1956. “The Baseball Players’ Labor Market.” The Journal of Political Economy 64(3):242–258.10.1086/257790Search in Google Scholar

Snedecor, G. and W. Cohran. 1967. Statistical Methods, 6th ed. Iowa: The Iowa State University Press.Search in Google Scholar

Zimbalist, A. S. 2002. “Competitive Balance in Sports Leagues: An Introduction.” Journal of Sports Economics 3(2):111–121.10.1177/152700250200300201Search in Google Scholar

Zimbalist, A. S. 2003. “Competitive Balance Conundrums: Response to Fort and Maxcy’s Comment.” Journal of Sports Economics 4(2):161–163.10.1177/1527002503004002006Search in Google Scholar

Published Online: 2014-6-17
Published in Print: 2014-6-1

©2014 by Walter de Gruyter Berlin/Boston

Downloaded on 6.6.2023 from https://www.degruyter.com/document/doi/10.1515/jqas-2013-0107/html
Scroll to top button