Special Issue "Sports Finance 2018"

A special issue of International Journal of Financial Studies (ISSN 2227-7072).

Deadline for manuscript submissions: closed (28 February 2019)

Special Issue Editors

Guest Editor
Prof. Dr. Duane Rockerbie

Department of Economics, University of Lethbridge, 4401 University Drive, Lethbridge, Alberta T1K 3M4, Canada
Website | E-Mail
Phone: 1-403-329-2517
Interests: economics of professional sports; economics of higher education; international finance
Co-Guest Editor
Prof. Dr. Angel Barajas

Department of Finance, National Research University Higher School of Economics, St. Petersburg, 194100, Russia
Website | E-Mail
Phone: +8(342)200-95-39
Interests: Valuation; Sports management and finance; Intellectual capital; Economic impact

Special Issue Information

Dear Colleagues,

Sports economics is a relatively new field of research that is experiencing rapid growth in the economics literature. The importance of the sports industry to economies coupled with the availability of financial and productivity data have made the study of sports economics a useful avenue for exploring research questions that have eluded mainstream economics fields. The main goal of this Special Issue of the International Journal of Financial Studies is to encourage theoretical and applied research in sports economics, which is of interest to both academics and practitioners.

For this purpose, this Special Issue on “Sports Finance” invites papers on topics, such as, but not limited to, salary determination, ticket pricing, revenue sharing, salary caps, competitive balance, new stadium financing, rival league behavior, determinants of revenue, television and media, tournament prize structures, financial distress in professional sports, financial fair play, financial control of sports clubs, Third Party Ownership, financial efficiency in professional sports, budget constrains and sport performance, financial information of sports, ownership of professional sport clubs and Crowdfunding in sports. Papers on both professional and amateur sports are welcome.

Prof. Dr. Duane Rockerbie
Prof. Dr. Angel Barajas
Guest Editor

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All papers will be peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. International Journal of Financial Studies is an international peer-reviewed open access quarterly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charges (APCs) of 350 CHF (Swiss Francs) per published paper are partially funded by institutions through Knowledge Unlatched for a limited number of papers per year. Please contact the editorial office before submission to check whether KU waivers, or discounts are still available. Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • Stadium financing
  • Competitive balance
  • Salary determination
  • Broadcasting
  • Consumer welfare
  • League structure
  • Demand and revenues

Published Papers (8 papers)

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Research

Open AccessArticle Performance Bonuses and Effort: Evidence from Fight Night Awards in Mixed Martial Arts
Int. J. Financial Stud. 2019, 7(1), 13; https://doi.org/10.3390/ijfs7010013
Received: 12 January 2019 / Revised: 7 February 2019 / Accepted: 10 February 2019 / Published: 20 February 2019
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Abstract
This paper investigates the role of fight night bonus awards on fighter behavior in the Ultimate Fighting Championship (UFC) and World Extreme Cage (WEC) fighting mixed martial arts (MMA) promotions. Behavior is analyzed using detailed fighter performance statistics, exploiting variation in bonus size [...] Read more.
This paper investigates the role of fight night bonus awards on fighter behavior in the Ultimate Fighting Championship (UFC) and World Extreme Cage (WEC) fighting mixed martial arts (MMA) promotions. Behavior is analyzed using detailed fighter performance statistics, exploiting variation in bonus size across events and over time. Findings suggest that fighters are not meaningfully influenced by bonus levels within the range observed in the sample period and possible explanations are discussed. Fight night bonuses appear to serve as a lottery compensation mechanism to ex post reward performances consistent with an MMA promotion’s desires rather than ex ante incentivize such performances. Findings have implications for strategic MMA promoter decisions and contribute more broadly to the personnel economics literature on incentives and compensation. Full article
(This article belongs to the Special Issue Sports Finance 2018)
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Open AccessArticle Attendance in the Canadian Hockey League: The Impact of Winning, Fighting, Uncertainty of Outcome, and Weather on Junior Hockey Attendance
Int. J. Financial Stud. 2019, 7(1), 12; https://doi.org/10.3390/ijfs7010012
Received: 21 December 2018 / Revised: 11 February 2019 / Accepted: 13 February 2019 / Published: 19 February 2019
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Abstract
An attendance model is specified for the Canadian Hockey League (CHL), the top level of junior hockey in Canada with some teams located in the United States. The natural log of attendance is used as the dependent variable, with explanatory variables consisting of [...] Read more.
An attendance model is specified for the Canadian Hockey League (CHL), the top level of junior hockey in Canada with some teams located in the United States. The natural log of attendance is used as the dependent variable, with explanatory variables consisting of the timing of the game, team performance characteristics, uncertainty of outcome measures, and weather-related variables. Weekends and Mondays were the most popular days for games. Winning and fighting were shown to be popular team characteristics that drive attendance. Uncertainty of outcome plays little role, if any, in fan interest at this level, while precipitation significantly reduces attendance. Full article
(This article belongs to the Special Issue Sports Finance 2018)
Open AccessArticle Howzat? The Financial Health of English Cricket: Not Out, Yet
Int. J. Financial Stud. 2019, 7(1), 11; https://doi.org/10.3390/ijfs7010011
Received: 21 December 2018 / Revised: 30 January 2019 / Accepted: 8 February 2019 / Published: 19 February 2019
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Abstract
In 1997 a review of the financial health of English county cricket highlighted strategic weaknesses within the professional game, principally an over-reliance by clubs on the annual grants provided to them by the England and Wales Cricket Board (ECB). Without such grants the [...] Read more.
In 1997 a review of the financial health of English county cricket highlighted strategic weaknesses within the professional game, principally an over-reliance by clubs on the annual grants provided to them by the England and Wales Cricket Board (ECB). Without such grants the teams, in general terms, would be insolvent. Using the financial statements of the First Class Cricket Counties, this paper explores how the financial position and performance of the county game has changed, 20 years on from the seminal study. A series of structural changes to the game had been made, yet financial problems are still evident. Counties are as reliant on central grant income as they were in 1997, although there are cases where clubs have made strategic enhancements and are becoming self-sustainable as going concerns. Rather than the ECB directly funding county revenue it should be working in collaboration with individual clubs to achieve developments in the game from the grassroots upwards, in order to help clubs grow their own revenue streams. Full article
(This article belongs to the Special Issue Sports Finance 2018)
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Open AccessArticle European Club Football after “Five Treatments” with Financial Fair Play—Time for an Assessment
Int. J. Financial Stud. 2018, 6(4), 97; https://doi.org/10.3390/ijfs6040097
Received: 8 October 2018 / Revised: 4 December 2018 / Accepted: 6 December 2018 / Published: 13 December 2018
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Abstract
UEFA’s Club Licensing and Financial Fair Play Regulations (FFP) have impacted European club football. After five distinct applications of the break-even requirement, which represents the cornerstone of these regulations, it is time for an assessment. How has the situation in European top-division football [...] Read more.
UEFA’s Club Licensing and Financial Fair Play Regulations (FFP) have impacted European club football. After five distinct applications of the break-even requirement, which represents the cornerstone of these regulations, it is time for an assessment. How has the situation in European top-division football changed since the FFP regulation? The most recent financial data show that European club football is characterized by significant financial recovery and further polarization. How has the FFP regulation presumably affected this development? This article discusses plausible reasons why FFP has contributed to financial recovery but has not aggravated polarization. Understanding the drivers of polarization is essential before taking further regulatory steps. Full article
(This article belongs to the Special Issue Sports Finance 2018)
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Open AccessArticle The Impact of Union of European Football Associations (UEFA) Financial Fair Play Regulation on Audit Fees: Evidence from Spanish Football
Int. J. Financial Stud. 2018, 6(4), 92; https://doi.org/10.3390/ijfs6040092
Received: 19 September 2018 / Revised: 7 November 2018 / Accepted: 7 November 2018 / Published: 13 November 2018
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Abstract
This paper analyzes whether the Financial Fair Play (FFP) regulations set by Union of European Football Associations (UEFA) have influenced the auditing fees charged to football clubs. In addition, it explores the determinants of audit fees. We used a two-sample t-test with equal [...] Read more.
This paper analyzes whether the Financial Fair Play (FFP) regulations set by Union of European Football Associations (UEFA) have influenced the auditing fees charged to football clubs. In addition, it explores the determinants of audit fees. We used a two-sample t-test with equal variances to determine whether differences are present. After this, we carried out a panel data regression with the clubs fix effect to estimate the determinants of audit fees in football clubs. Our findings revealed an increase of audit fees after the implementation of FFP regulations. On top of that, audit fees were explained by the presence of foreign investors if the audit firm was one of the Big 4 and if the auditor was a woman. The regulation change has had an impact on the audit fees charged by auditors for their services. However, this increase may be compensated over future years given the improving financial situation of clubs; therefore, the auditors’ risk diminishes and subsequent audit fees may be reduced. UEFA should monitor audit fees as well as the quality of the audit reports, which have become crucial to obtaining the license to participate in UEFA competitions. Full article
(This article belongs to the Special Issue Sports Finance 2018)
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Open AccessArticle Financial and Sporting Performance in French Football Ligue 1: Influence on the Players’ Market
Int. J. Financial Stud. 2018, 6(4), 91; https://doi.org/10.3390/ijfs6040091
Received: 3 October 2018 / Revised: 31 October 2018 / Accepted: 3 November 2018 / Published: 8 November 2018
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Abstract
Despite the globalisation of European soccer, each professional league exhibits specificities. French Ligue 1 sometimes contends with the trading-off of financial performance against sporting performance of its teams in European soccer competitions, and its inner auditing body, the Direction Nationale du Contrôle de [...] Read more.
Despite the globalisation of European soccer, each professional league exhibits specificities. French Ligue 1 sometimes contends with the trading-off of financial performance against sporting performance of its teams in European soccer competitions, and its inner auditing body, the Direction Nationale du Contrôle de Gestion (DNCG), is in charge of controlling clubs’ financial accounts. Moreover, Ligue 1 operates with one of the best competitive balances in the Big Five, which is detrimental to its clubs’ success at the European level. However, the league and a number of clubs have not been able to curb payroll inflation and have not avoided being recurrently run in a deficit and accumulating debts, in particular payment arrears and player transfer overdue. Lax management occurs, since very few clubs have been sanctioned by a payment failure, even fewer by liquidation, and there has been no bankruptcy. The concept of a soft budget constraint theoretically encapsulates such empirical evidence. The novelty of the paper is to establish a link between the soft budget constraint and the players’ labour market where it crucially triggers market disequilibria: an excess of demand for superstars’ talents and an excess of supply for journeymen players are modelled. Data paucity about player individual wages hinders econometric testing of the aforementioned link and the model. However, a look at transfer fees that concentrates on a few of the top European soccer clubs provides a first insight into the arms race for talent that fuels an excess of demand for superstars and dips a number of clubs’ finance into the red. Full article
(This article belongs to the Special Issue Sports Finance 2018)
Open AccessArticle Revenue Sharing in Major League Baseball: The Moments That Meant so Much
Int. J. Financial Stud. 2018, 6(3), 71; https://doi.org/10.3390/ijfs6030071
Received: 31 May 2018 / Revised: 27 July 2018 / Accepted: 2 August 2018 / Published: 6 August 2018
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Abstract
Revenue sharing is a common league policy in professional sports leagues. Several motivations for revenue sharing have been explored in the literature, including supporting small market teams, affecting league parity, suppressing player salaries, and improving team profitability. We investigate a different motivation. Risk-averse [...] Read more.
Revenue sharing is a common league policy in professional sports leagues. Several motivations for revenue sharing have been explored in the literature, including supporting small market teams, affecting league parity, suppressing player salaries, and improving team profitability. We investigate a different motivation. Risk-averse team owners, through their commissioner, are able to increase their utility by using revenue sharing to affect higher order moments of the revenue distribution. In particular, it may reduce the variance and kurtosis, as well as affecting the skewness of the league distribution of team local revenues. We first determine the extent to which revenue sharing affects these moments in theory, then we quantify the effects on utility for Major League Baseball over the period 2002–2013. Our results suggest that revenue sharing produced significant utility gains at little cost, which enhanced the positive effects noted by other studies. Full article
(This article belongs to the Special Issue Sports Finance 2018)
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Open AccessArticle Earnings Persistence of European Football Clubs under UEFA’s FFP
Int. J. Financial Stud. 2018, 6(2), 43; https://doi.org/10.3390/ijfs6020043
Received: 4 March 2018 / Revised: 30 March 2018 / Accepted: 13 April 2018 / Published: 17 April 2018
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Abstract
The goal of this study was to examine the predictability and persistence of earnings of the European football clubs and whether the new Union of European Football Associations (UEFA) Financial Fair Play (FFP) licensing regulation has forced clubs to produce a more predictable [...] Read more.
The goal of this study was to examine the predictability and persistence of earnings of the European football clubs and whether the new Union of European Football Associations (UEFA) Financial Fair Play (FFP) licensing regulation has forced clubs to produce a more predictable earnings stream. We utilized a sample of 109 European top-tier clubs over the period 2008–2016, summing up to 844 firm-year observations. Empirical evidence indicated that the cash flow component of earnings is more relevant in predicting one-year ahead earnings than accruals. This positive impact of cash flows for predicting earnings is more significant after the FFP regulation since earnings predictability has increased during that period. Moreover, the abovementioned finding is more significant for the smaller league clubs rather than the Big-5 league clubs. This finding is attributed to the fact that smaller league clubs are more in need of UEFA prize money relative to Big-5 league clubs, thus they are more incentivized to produce a more predictable earnings stream. Full article
(This article belongs to the Special Issue Sports Finance 2018)
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