The Effect of the UEFA Champions League Financial Payout System on Competitive Balance in European Soccer Leagues
Date
2016
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Haverford College. Department of Economics
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Thesis
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Award
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eng
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Open Access
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Abstract
The paper examines the effect of UEFA Champions League payouts on competitive balance across European leagues. A league-level specification identifies the magnitude of the effect of the UEFA payouts on three measures of competitive balance. The results confirm that the UEFA payouts have a statistically significant effect at the league-level depending on which competitive balance measure and league sample is used. However, the UEFA payouts had no statistically significant effect on individual clubs’ average annual payroll or the clubs’ qualification for the Champions League in the following season.