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The Effect of League Design on Club Revenues in the Scottish Premier League

Barry Reilly and Robert Witt

Eastern Economic Journal, 2024, vol. 50, issue 1, No 1, 28 pages

Abstract: Abstract This paper exploits a sharp regression discontinuity design (RDD) to causally identify the impact of the league ‘split’ on Scottish Premier League (SPL) club revenues. The data used are drawn from 21 completed seasons in which the institutional arrangement has been in place in Scotland’s elite tier of professional soccer. The empirical analysis fails to detect strong or persuasive statistical evidence that the league design substantially impacts the revenue distribution of the participating clubs. Given the league design is found to be close to financially-neutral for the clubs most directly affected by the ‘split’, it is not viewed as a catalyst in driving financial inequality within the league.

Keywords: SPL ‘split’; Financial revenues sharp RDD (search for similar items in EconPapers)
JEL-codes: C21 Z20 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1057/s41302-023-00260-3

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