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Regional Effects of Professional Sports Franchises – Causal Evidence from Four European Football Leagues

The locational pattern of clubs in four professional football leagues in Europe is used to test the causal effect of relegations on short-run regional development. The study relies on the relegation mode of the classical round-robin tournament in the European model of sport to develop a regression-discontinuity design. The results indicate small and significant negative short-term effects on regional employment and output in the sports-related economic sector. In addition, small negative effects on overall regional employment growth are found. Total regional gross value added remains unaffected.

Authors Matthias Brachert

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Dr Matthias Brachert
Dr Matthias Brachert
Economist

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