A study reveals that a certain competitive imbalance is a factor favoring the economic success of European soccer leagues.
The research of Pedro García del Barrio, professor at School of Economics and Business Studies, shows that concentrating talent in a few clubs increases the attractiveness and revenues of competitions.
A study conducted by School professorPedro García del Barrio together with James Reade of the University of Reading reveals that a certain Degree competitive imbalance in European soccer leagues is a factor core topic for their economic success. According to the authors, concentrating talent in a few clubs fuels fan interest, while generating higher revenues that benefit the entire league, including the smaller teams.
The analysis challenges the traditional perspective in Economics sports, which promotes equality between teams as the best way to attract interest. García del Barrio and Reade argue that a moderate imbalance brings excitement to the competition, creating rivalries that increase the prestige and visibility of the league globally. "The concentration of talent is not only a reality that is difficult to avoid, but it also favors the revenue and financial stability of the major leagues," García del Barrio points out.
The study opens up new perspectives for the business strategies of European leagues, offering a framework to achieve further growth and business projection. "Our results could influence future policies affecting the distribution of talent as well as the leagues' financial regulations, with the goal aim of achieving a balance between competitiveness, entertainment and profitability," he concludes.