The Economics of Sport

The Analysis of Amateur Sports Clubs Funding: A European Perspective

“…From the spending point of view, in addition to the budget devoted to facilities (%FACI), spending on salaries appear to be a factor of income concentration, which suggests that it is those clubs that have a solid base in terms of members and therefore subscriptions, that become employers. This result appears to contradict the literature, since employment in general is considered as a source of diversification (Tchernonog 2007, Downward et al 2009). …”

“…In these conditions, it is difficult to give precise figures on the funding of associations that could be comparable in various European countries 5 . The survey proposed by Downward et al (2009) on this subject, shows, however, that the heterogeneity of sport club revenues is a specificity that all countries have in common. In addition to 5 It enables us to list the work conducted in different European countries gathered in the collective book directed by Heinemann (1999) Horch (1998) and Breuer (2007)), Taks for Belgium, Ibsen for Denmark, Skirstad for Norway, Koski for Finland, and Slack (1997) for the United States.…”

“…Up to date, though, it is only the demand 1 and the spending (Humphreys and Ruseski 2009) that have been really analysed. From this standpoint, the reference work written by Downward et al (2009) is innovative, because it addresses sport in its various dimensions (sporting events, professional sport and leisure activities). It devotes a chapter to the supply of sports practice by clubs, goes beyond the scope of non-monetary financing i.e.…”

Exploitation in Monopsony

“…The firm's notional number of workers employed n n and the notional wage offered n w are determined by solving Equations (7) and Equation 8 13 .…”

“…See Rottenberg [11], and Gilroy and Madden [12] for further discussion. In a recent textbook regarding sports economics, Downward et al [13] used the monopsony model as the framework to explain why players may be exploited. 6 Scully [14] and Medoff [15] have indicated that labor market restrictions led to the exploitation of professional baseball players.…”