Contents for IJSF Issue 4:1
|Editors’ Introduction, pp. 3-4
Authors: Robert Simmons, Bernd Frick, and Brad R. Humphreys
|Abstract:The International Journal of Sport Finance begins a new era with the publication of this issue (Volume 4, Issue 1). Dennis Howard, the founding editor of IJSF, and Fitness Information Technology, the publishers of the journal, envisioned a change in the IJSF editorial leadership in three-year cycles to keep the field of sport finance moving forward and the journal vital. With the publication of this issue we are following through with that policy with Robert Simmons assuming duties as editor and Bernd Frick and Brad R. Humphreys assuming the roles of associate editors.
|Rational Exuberance? An Event Analysis of the 2008 Olympics Announcement, pp. 5-15
Authors: Michael A. Leeds, John M. Mirikitani, and Danna Tang
|Abstract:China spent far more on the 2008 Olympiad than any previous host country. A retrospective assessment of the benefits of the 2008 Games to the Chinese economy will not be possible for several years. We use an adaptation of event study methodology that has been employed by studies of previous Olympiads to analyze the expected benefits of the 2008 Games. We show that the announcement that Beijing would host the 2008 Games led to a brief rise in the Shanghai exchange, but the euphoria quickly dissipated. We find that there was no corresponding decline in the stock exchanges of Beijing’s closest rivals for the 2008 Games. There was a longer lasting impact on specific sectors of the Shanghai exchange, but this impact was not always positive.
|Playing Like the Home Team: An Economic Investigation into Home Advantage in Football, pp. 16-41
Authors: Mark Koyama and J. James Reade
|Abstract:Home advantage in football varies over time. Existing theories of home advantage struggle to explain this time-series variation. We argue that the decline in home advantage in English football since the mid-1980s was partly caused by the advent of televised football. We argue that the increase in live television coverage of football matches has worked to incentivize players to not to shirk when playing in away games, as supporters can now more effectively monitor their efforts. We test this hypothesis using both time-series and panel-data econometrics.
|Betting Exchanges: The Future of Sports Betting?, pp. 42-62
Authors: Ruud H. Koning and Bart van Velzen
|Abstract:Sports betting and sports have always been strongly connected. Traditionally, these betting markets have been cleared by bookmakers, who accept bets on certain events. These bookmakers carry the risk of paying the amount wagered if the event occurs. Recently, a new type of betting market has appeared, so-called betting exchanges. In these markets, punters bet with each other directly, and the organization that creates market does not carry any risk that depends on the occurrence of the event. In this paper we provide an analysis of this new type of markets, using a SWOT-analysis. Issues like competitiveness and survival of betting exchanges are addressed. We argue that liquidity is the prime determinant of long-term success of betting exchanges.
|Economic Multipliers and Mega-Event Analysis, pp. 63-70
Authors: Victor A. Matheson
|Abstract:Critics of economic impact studies that purport to show that mega-events such as the Olympics bring large benefits to the communities “lucky” enough to host them frequently cite the use of inappropriate multipliers as a primary reason why these impact studies overstate the true economic gains to the hosts of these events. This brief paper shows in a numerical example one way in which mega-events may lead to inflated multipliers and exaggerated claims of economic benefits.