Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 1126: The Emergence of a Market for Football Stars: Talent Development and Competitive Balance in European Football

Pehr-Johan Norbäck (), Martin Olsson () and Lars Persson ()
Additional contact information
Pehr-Johan Norbäck: Research Institute of Industrial Economics (IFN)
Martin Olsson: Research Institute of Industrial Economics (IFN)
Lars Persson: Research Institute of Industrial Economics (IFN)

Abstract: We analyze how the Bosman ruling affected the market for star players and talent development in the European football market. We develop a model with sports competition and endogenous ownership of star players in which we show how the stiffer bidding competition over star players after the Bosman ruling has spurred talent development foremost in EU nations lacking established top clubs. This has a positive impact on their national teams’ performance. However, the stiffer bidding competition has also lead to less competition in the Champions League, as non-established clubs prefer to sell their star players instead of challenging the top clubs. We provide empirical evidence consistent with these findings.

Keywords: Sports industry; Star players; Champions League; Bosman ruling

JEL-codes: J44; L50; L83

45 pages, May 31, 2016

Full text files

wp1126.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Elisabeth Gustafsson ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-01-23 23:34:50.