Szymanski, S. and Smith, Ron P. (1997) The English football industry: profit, performance and industrial structure. International Review of Applied Economics 11 (1), pp. 135-153. ISSN 0269-2171.
Abstract
The English (Association) Football League is a long established industrial cartel selling a highly popular product with only imperfect substitutes. Despite that, the majority of its member clubs lose money and the industry has faced successive financial crises over the last decade. This paper develops an empirical model of the financial performance of English League clubs using a high quality dataset of 48 clubs over the period 1974–89. The underlying model explains how rents are competed away through the maximising behaviour of club owners subject to production constraints. This model is parameterised by a system of equations which describe the behaviour of a maximising owner subject to demand and production constraints. The model is then used to examine the coordination failure which lies at the heart of the English Football League's decline and to assess the prospects for the Premier League.
Metadata
| Item Type: | Article |
|---|---|
| School: | Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School |
| Depositing User: | Sarah Hall |
| Date Deposited: | 31 Aug 2020 18:28 |
| Last Modified: | 02 Aug 2023 18:03 |
| URI: | https://eprints.bbk.ac.uk/id/eprint/40687 |
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