Demand for TV Broadcasts of UEFA Champions League Games in Danish Television – The Impact of Uncertainty of Outcome, Stardom, and Local Heroes

20 Pages Posted: 18 Aug 2022

See all articles by Oliver Budzinski

Oliver Budzinski

Ilmenau University of Technology

Arne Feddersen

University of Southern Denmark - Department of Environmental and Business Economics

Philipp Kunz-Kaltenhäuser

Ilmenau University of Technology

Date Written: July 31, 2022

Abstract

There are noticeable conceptual differences between competing concepts for organizing the highest level of European Football. One major conceptual controversy is concerned with the question whether fans have a stronger preference for (more) games between the top teams over a broad participation of less well-known clubs representing more of the regions in Eu-rope or vice versa. Since sports economics theory offers explanations for both views, this paper takes an empirical approach and analyzes revealed fan preferences in a market outside of the Big-5 leagues. It examines the impact of uncertainty of outcome, market value as well as local heroes (domestic players & teams) as determinants of demand in national TV in Denmark. It uses representative panel data of national TV demand for UEFA Champions League games in Denmark from 2006/07-2018/19. We estimate a semi-logarithmic OLS regression model with team fixed-effects where the dependent variable is the natural loga-rithm of the average TV audience of UCL matches broadcasted in Denmark. We find that the presence of superstar clubs as measured by accumulated market value of players increases broadcast audience significantly, whereas the number of superstar players in a game did not. Matches including Danish clubs (domestic clubs) as well as the number of Danish players on a team’s roster (local hero players) show no robust effect on TV audience. Uncertainty of outcome increases TV demand in our model, supporting the UOH for TV audiences and fur-thering the discussion around diverging preferences between stadium attendance and TV demand.

Keywords: sport broadcasting demand, UEFA Champions League, European Super League, uncertainty of outcome, league management, superstars, local heroes, European football, soccer

JEL Classification: Z20, L83, D47

Suggested Citation

Budzinski, Oliver and Feddersen, Arne and Kunz-Kaltenhäuser, Philipp, Demand for TV Broadcasts of UEFA Champions League Games in Danish Television – The Impact of Uncertainty of Outcome, Stardom, and Local Heroes (July 31, 2022). Available at SSRN: https://ssrn.com/abstract=4186928 or http://dx.doi.org/10.2139/ssrn.4186928

Oliver Budzinski (Contact Author)

Ilmenau University of Technology ( email )

Ilmenau, D-98684
Germany

HOME PAGE: http://www.tu-ilmenau.de/wth

Arne Feddersen

University of Southern Denmark - Department of Environmental and Business Economics ( email )

DK-5230 Odense
Denmark

Philipp Kunz-Kaltenhäuser

Ilmenau University of Technology ( email )

Ilmenau, D-98684
Germany

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