IJSF Issue 9:3

Contents for IJSF Issue 9:3

Entire issue of IJSF 9:3
Authors: Babatunde Buraimo, Arne Feddersen, and Joachim Prinz, Egon Franck, Stefan Szymanski, Dennis Coates, Pamela Wicker, Svenja Feiler, and Christoph Breuer,Rodney J. Paul, Andrew P. Weinbach, and Chris Weinbach, Charlotte Cabane
Abstract:This is the entire issue in PDF format that you can download

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Guest Editors’ Introduction, pp. 191-192
Authors: Babatunde Buraimo, Arne Feddersen, and Joachim Prinz
Abstract:This special issue of the International Journal of Sport Finance (IJSF) features a selection of papers from the 5th European Conference on Sports Economics held by the European Sport Economics Association (ESEA). The conference took place September 19–20, 2013, in Esbjerg, Denmark and was organized by the University of Southern Denmark and the Ilmenau University of Technology. The Blue Water Arena—home of the local first division football club Esbjerg fB—appeared to be an appropriate venue to hold a conference on sport economics. There were 78 presentations and more than 100 participants representing 21 countries (including non-European countries like Australia, Chile, and the US) were present in Esbjerg.

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Financial Fair Play in European Club Football: What Is It All About?, pp. 193-217
Authors: Egon Franck
Abstract:The new UEFA Club Licensing and Financial Fair Play Regulations have encountered stiff criticism. The concerns are that the new regulations may harm football in three different ways: By forgoing the potential benefits from substantial injections of “external” money into payrolls, by restricting competition in the player market without at the same time achieving benefits from more balanced competition, and by creating some sort of barrier to entry which could “freeze” the current hierarchy of clubs. It is the purpose of this paper to take these concerns as a starting point for discussing the likely effects of the new regulations. As a by-product it will become obvious why and in which points the concerns are unfounded.

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Fair is Foul: A Critical Analysis of UEFA Financial Fair Play, pp. 218-229
Authors: Stefan Szymanski
Abstract:This paper critically analyzes the rules of the UEFA financial regulatory system for football clubs known as Financial Fair Play (FFP). I argue that the objectives of FFP are not really fairness but financial efficiency and that the rules are unlikely to achieve efficiency. I also contend that even from the perspective of fairness, the rules do little more than substitute one form of inequality for another. Finally I briefly assess the implications for the competition law challenge that was launched in May 2013 against the FFP breakeven rule.

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A Bivariate Probit Examination of Financial and Volunteer Problems of Non-Profit Sport Clubs, pp. 230-248
Authors: Dennis Coates, Pamela Wicker, Svenja Feiler, and Christoph Breuer
Abstract:Previous research has examined the financial and volunteer problems of non-profit sport clubs in an isolated manner and has neglected the influence that sponsorship and subsidy funding, which we term as external funding, may have on both problems. The purpose of this study is to examine the effect of this external funding on financial and volunteer problems, and the relationship between both types of problems. Using data from a survey of sport clubs in Germany, a bivariate probit model is estimated. The results provide evidence that both problems are interrelated. Clubs relying on sponsorship income experience larger financial and volunteer problems, while subsidies only increase volunteer problems. Moreover, club philosophy variables significantly impact both types of problems while governance structure does not. Internal revenues and miscellaneous external revenues have no significant impact on either type of problem. The findings have implications for club management.

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The Impact of Atmospheric Conditions on the Baseball Totals Market, pp. 249-260
Authors: Rodney J. Paul, Andrew P. Weinbach, and Chris Weinbach
Abstract:A study of the physics of baseball has shown that air density plays a significant role in the distance a batted baseball will travel. Air density is a function of altitude, temperature, humidity, and barometric pressure. This paper tests if air density impacts the totals market in Major League Baseball by influencing the number of runs in a game above and beyond the betting market total. Through regression analysis and betting simulations of the 2012 season, it is shown that air density has an inverse relationship with total runs scored and simple betting strategies are constructed that yield positive returns.

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Unemployment Duration and Sport Participation, pp. 261-280
Authors: Charlotte Cabane
Abstract:In this study we use the German Socio-Economic Panel to evaluate the impact of leisure sport participation on the unemployment duration. The empirical literature on sport participation has focused on labor market outcomes and job quality while the impact of this activity on job search has not been studied. Sports participation fosters socialization which, through the networking effect, accelerates the exit from unemployment to employment. Furthermore, sporty people are expected to have valuable non-cognitive skills (self-confidence, persistence, team spirit). In addition, they tend to be healthier. These hypotheses are tested using survival analysis and taking into account unobservable heterogeneity. Finally, the results remain robust even if we account for other activities with similar positive effects.

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