Live Broadcasting, Gate Revenue, and Football Club Performance: Some Evidence
International Journal of the Economics of Business, 2012, vol. 19, issue 1, 75-98
This paper presents new evidence concerning the main argument of the English Premier League for collective arrangements in selling television broadcast rights. Matches that are broadcast live on television can be considered as a substitute for watching at the stadium. New panel-data show that broadcasting live has a small negative effect on gate revenue for the best performing clubs and a much larger effect for the worst performing clubs. However, the marginal cost is outweighed by the marginal revenue, concluding that restrictions on quantity stemming from collective arrangements are detrimental to the consumers, broadcasters, and clubs themselves.
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