The regional effects of professional sports franchises: Causal evidence from four European football leagues

No 10/2018, IWH Discussion Papers from Halle Institute for Economic Research (IWH)

Abstract: We use the locational pattern of clubs in four major professional football leagues in Europe to test the causal effect of changes in premier league membership on regional employment and output growth at the NUTS 3 level. We rely on the relegation mode of the classical round-robin tournament in the European model of sport to develop a regression-discontinuity design. The results indicate small and significant negative short-term effects on regional employment and output in the sports-related economic sector when clubs are relegated from the premier division of the respective football league. In addition, we find small negative effects on overall regional employment growth. However, total regional gross value added remains unaffected, indicating that in the main it is the less productive jobs that disappear in the short-term.

Keywords: professional football; relegation; regional growth; regression discontinuity design (search for similar items in EconPapers)
JEL-codes: J40 R11 R12 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-eur, nep-geo, nep-spo and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:iwhdps:102018

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