The Champions League and the Coase Theorem

19 Pages Posted: 18 Jun 2007

See all articles by Stefan Szymanski

Stefan Szymanski

Imperial College London - Imperial College of Science, Technology and Medicine

Abstract

This paper considers the relevance of the Coase Theorem to the analysis of sports leagues. It is widely believed that there exists an ideal competitive balance between teams in a sporting contest, and that without competitive restraints to redistribute resources championships will be too unbalanced. The paper reviews the empirical evidence on this issue to date, and then examines a model where the outcome may be either too little or too much competitive balance. Empirical evidence from English football suggests that the bias is likely to be in favour of too much competitive balance. The implications for European football in general and the Champions League in particular are then discussed.

Suggested Citation

Szymanski, Stefan, The Champions League and the Coase Theorem. Scottish Journal of Political Economy, Vol. 54, No, 3, pp. 355-373, July 2007. Available at SSRN: https://ssrn.com/abstract=992044 or http://dx.doi.org/10.1111/j.1467-9485.2007.00419.x

Stefan Szymanski (Contact Author)

Imperial College London - Imperial College of Science, Technology and Medicine ( email )

Exhibition Road
London, SW7 2AZ
United Kingdom
+44 20 7594 9107 (Phone)
+44 20 7823 7685 (Fax)

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