Rising Stars: Competitive Balance in Five Asian Football Leagues

Abstract

Competitive balance remains a core component of sport economics literature and an important management consideration for league organisers. This paper analyses competitive balance in the 'big five' Asian football leagues longitudinally between 1996/97 and 2017/18.Using recognised measures of league concentration and dominance, the results display a mixed picture in respect of competitive balance across the five major leagues in Asian football. The Asian football market has seen positive growth during the last two decades while competitive balance in most of the leagues examined has remained relatively stable. Some significant differences were detected in the levels of concentration between leagues.There was also some variation in terms of some leagues being dominated by a fewer number of teams. However, these two measures of competitive balance (concentration and dominance) were not necessarily correlated with each other. In a broader governance context, questions remain over the potential for further growth in the Asian football market given the dominant market position of the European game.

A Comparative Analysis of Competitive Balance Between a Closed and an Open League in Rugby League

“…The analysis is divided by measures of points concentration and competitor dominance (Booth, 2005; Evans, 2014) in accordance with recent studies of competitive balance (Plumley et al, 2020; Ramchandani et al, 2018; Rocke, 2019). In total, five measures were used as metrics of balance: two concentration measures and three dominance measures.…”

“…To measure the dispersion of points within and between each season, the Standardized Herfindahl Index of Competitive Balance (SHICB) offered by Plumley et al (2020) was employed as well as the Top 25% concentration ratio (T25; Ramchandani, 2012). In comparison to other measures of competitive balance, such as average points/win percentage standard deviation approaches (Booth, 2005), the SHICB and T25 method can better accommodate draws that occur, changes in competition size, varying season length and facilitate between competition analyses over the mid- and long-term (Michie & Oughton, 2004; Plumley et al, 2020). Further, the ratio of standard deviations approach to measuring competitive balance is sensitive to season length (Owen & King, 2015).…”

“…Considering that tied matches are possible in rugby league and competition size and length varies over time within and between both the NRL and SL, the SHICB and T25 are the most appropriate measures of competitive balance. Further, the use of SHICB enables reference and comparison to competitions in other sports (e.g., Mondal, 2021; Plumley et al, 2020).…”

“…The RFL's most recent financial statement reported a small operating profit (£75k) from an approximate turnover of £22 million following 2 years of losses (RFL, 2020). Likewise, although the NRL was able to complete the 2020 season with lowered crowd attendances, the pandemic has again highlighted the financial precarity of the clubs (Pengilly & Phillips, 2020). However, the NRL as a governing body enjoys better financial health to support its clubs.…”

“…In doing so, this study provides comparative evidence for the argument that closed league systems outperform open league systems in terms of competitor dominance and points concentration. In addition to the theoretical implications associated with the links between league structure and competitive balance, the results are instructive to regulators as both leagues have been presented with mounting financial challenges from nonexistent or limited gate revenue due to coronavirus disease 2019 (COVID-19) (Pengilly & Phillips, 2020;Press Association, 2020). As a result, part of both competition's long-term recovery strategy requires ensuring adequate competitive balance between teams.…”