Collective selling of media rights as instrument for competitive balance in European major football leagues

Table of Contents

1 Introduction

2 Target markets

2.1 European professional team sports market

2.2 European television market

2.2.1 Broadcasting in sports

2.2.2 Legal background

3 Theoretical frameworks

3.1 Multi-sided markets

3.2 Analysis dimensions

3.2.1 Theory of competitive balance

3.2.2 Theory of media rights selling systems

3.2.3 Theory of revenue sharing systems

4 Status quo

4.1 Competitive balance

4.2 Media rights selling systems

4.3 Revenue sharing systems

4.4 Influence factors

5 Research design

5.1 Method discussion

5.2 Hypotheses

5.3 Design of the analysis

6 Presentation and evaluation of the analysis

6.1 Results of the RSD

6.2 Results of the CR5 and CR2

6.3 Statistical analysis of the results

6.4 Evaluation of the hypotheses

7 Conclusion

Research Objectives and Key Topics

The objective of this thesis is to determine whether collective selling of media rights in European major football leagues contributes to long-term competitive balance, addressing the potential impact of different revenue-generating models on league parity and financial distribution.

• The competitive relationship between individual versus collective TV rights sales.
• Economic theories of multi-sided markets and competitive balance in professional sports.
• Quantitative measurement of league balance using Ratio of Standard Deviation (RSD) and Concentration Ratios (CR2/CR5).
• Impact of external financial factors, such as investors and UEFA club competition revenues, on sporting parity.
• Evaluation of league stability and financial inequalities within the "Big Five" European leagues and the Portuguese Primeira Liga.

Excerpt from the Book

Summary of Chapters

1 Introduction: Defines the research question regarding media rights selling systems and their influence on the competitive balance in European football leagues.

2 Target markets: Analyzes the economic structure of professional team sports, the broadcasting market, and the legal framework surrounding the industry.

3 Theoretical frameworks: Explores theories concerning multi-sided markets, the mechanics of competitive balance, and the economics of revenue sharing.

4 Status quo: Provides an overview of the current competitive landscape, existing media rights models, and various external factors influencing financial stability.

5 Research design: Discusses the methodology, including measurement tools like RSD and CR, and introduces the five hypotheses tested in the study.

6 Presentation and evaluation of the analysis: Presents the calculated results, statistical analyses, and evaluates the validity of the proposed hypotheses.

7 Conclusion: Summarizes the findings, provides a critical review of the research process, and offers insights into future developments in the sports industry.

Keywords

Competitive Balance, Media Rights, Collective Selling, Professional Football, European Leagues, TV Broadcasting Revenues, Revenue Sharing, Uncertainty of Outcome, Sports Economics, Multi-sided Markets, Financial Power, Sporting Success, Concentration Ratio, Ratio of Standard Deviation, Financial Fair Play

Frequently Asked Questions

What is the primary focus of this master thesis?

The thesis investigates whether the collective selling of media rights leads to a higher level of long-term competitive balance in major European football leagues compared to individual selling systems.

What are the core thematic fields covered?

The work covers sports economics, media rights distribution, the legal landscape of professional sports, and the measurement of competitive parity using statistical tools.

What is the central research question?

The research asks: “Is it possible to find evidence that collective selling of media rights increases competitive balance in European major football leagues in the long run?”

Which scientific methods are utilized?

The author employs a quantitative approach using the Ratio of Standard Deviation (RSD) and Concentration Ratios (CR2 and CR5) to analyze league data from 1984 to 2013.

What is addressed in the main body of the work?

The main body examines the theoretical background of multi-sided sports markets, current status reports on league revenues, and a comparative statistical evaluation of six European leagues.

How would you characterize the work using keywords?

The work is characterized by terms such as competitive balance, media rights, revenue sharing, sports economics, and league dominance.

How does the financial power of clubs influence competitive balance?

The author identifies a "positive helix" where financial success leads to sporting success, which in turn generates more financial power, potentially creating an imbalance within leagues.

What role do external investors play in professional football?

The thesis concludes that external investors and significant financial injections can undermine the effects of media rights distribution, making the choice of selling system less impactful on overall financial stability.