Why Does the Invariance Principle Hold? An Empirical Analysis of Collective Media Rights Sales and Competitive Balance

Thomas Peeters*

*Corresponding author for this work

Research output: Chapter/Conference proceedingChapterAcademic

Abstract

In this chapter I empirically investigate the effect of introducing collective media sales on competitive balance in a case study of the Italian top soccer league Serie A. I leverage a unique financial database containing the original accounts of clubs in the top European soccer leagues (see Hoey et al, 2021). The results show that collective sales resulted in a more egalitarian distribution of media revenues in Serie A in comparison to similar leagues. Likewise, the distribution of total revenues and wage spending also became more equal, while it diverged in rival leagues. This evolution in club finances did not result in more balanced sporting outcomes in Serie A.
Original languageEnglish
Title of host publicationPrinciples and Paradoxes of Sports Economics
Subtitle of host publicationContributions in Honor of Rodney Fort
PublisherSpringer Nature Switzerland AG
Pages161-174
ISBN (Electronic)978-3-031-68479-1
ISBN (Print)978-3-031-68478-4
DOIs
Publication statusPublished - 12 Nov 2024

Publication series

SeriesSports Economics, Management and Policy ((SEMP))
Volume26
ISSN2191-298X

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