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TV-income and football performance: A study of how broadcasting revenues affect domestic and international sporting success for Europe’s elite leagues

Henriksen, Andreas Gausemel; Stensager, Carl Magnus
Master thesis
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Attachement Preliminary Thesis.pdf (1.594Mb)
URI
http://hdl.handle.net/11250/2578248
Date
2018
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  • Master of Science [1117]
Abstract
Europe's elite football leagues are often defined by the collective term “the Big

Five”, and consist of clubs originating from England, Spain, Italy, Germany and

France. By dominating both the UEFA Club Coefficient Ranking and Deloitte's

“Football Money League”, the teams from these European leagues win the vast

majority of international tournaments as well as being the most profitable in terms

of revenue generation. While previous research explores the relationship between

total revenue generation and sporting achievements, our paper aims to isolate the

effect of broadcasting revenues, and examine how the income from TV-deals

influences both domestic and international sporting success. By handpicking

information from “the Big Five” leagues across a timespan of seven years (2010-

2017), we built a robust dataset containing thousands of observations. After

running our data through a set of correlation tests and multiple regression models,

we were able to establish positive significant relationships between both

broadcasting revenues and domestic sporting success, and broadcasting revenues

and international sporting success. In fact, as our findings imply broadcasting

revenues to be a weaker success predictor for English teams than for non-English,

the results may indicate that the usage of different broadcasting revenue

distribution models influence sporting achievements. We believe that the uniform

allocation model practiced in England enhances the internal league competition,

making it tougher for one or two teams to dominate the rest. On the other hand,

looking at how the broadcasting revenues are distributed in non-English leagues,

we observe that the skewed allocation fuels a few superior clubs, enabling them to

retain both domestic and international sporting success.
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Handelshøyskolen BI

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