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on Sports and Economics |
| By: | Groznykh Rogneda (Ural Federal University); Igor Drapkin (Ural Federal University); Oleg Mariev (Ural Federal University) |
| Abstract: | In the modern literature there is no consensus on the effects arising in countries as a result of hosting major sports events, namely the Olympic Games, FIFA World Cup and UEFA European Championship. This paper focuses on two aspects of the major sports events effects in the hosting country: on economic growth and foreign direct investment inflows. The estimated database includes indicators for all countries that hosted major sport events during 1970?2015. This paper confirms the hypotheses of positive effects both on economic growth and foreign direct investment in the hosting countries. Positive significant effects are found not only during the period of preparation to the event, but (what is more important) during the 4 to 12 year period after the event. |
| Keywords: | major sports events, economic growth, foreign direct investment inflows, the Olympic Games, FIFA World Cup, UEFA European Championship, effects of hosting major sports events, Solow model |
| JEL: | L83 O11 O19 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iefpro:6910164&r=spo |
| By: | Grabar, Vsevolod; Sonin, Konstantin |
| Abstract: | A dramatic surge in revenues from TV broadcasting and brand-selling forced modern football clubs, simultaneously involved in domestic and European competitions, to operate in a new environment. In response, the Union of European Football Associations introduced the Financial Fair Play Regulations, a set of financial regulations that affect all major European clubs. To assess the impact of financial restrictions (e.g., salary caps) on the default risk for individual clubs and competitive balance, we construct a game-theoretic model where clubs make decisions on the amounts they borrow and spend on the team. The impact of financial restrictions on competitive balance is positive; the total amount of debt also decreases at equilibrium. Finally, we show that financial restrictions create more incentives to invest in second-tier clubs compared to the situation in which there are no financial regulations. |
| Keywords: | financial regulation; competitive balance; financial regulation; investment tournaments; UEFA Financial Fair Play |
| JEL: | C72 D63 G28 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13154&r=spo |