Dominance and Distress
Fecha: abril 2019
Stefan Szymanski
Economía del deporte, Deporte, Fútbol, Ligas deportivas, Competitividad
EN: This chapter describes the two states which best describe the condition of any given football club: either dominance or (financial) distress. Organized professional football has been characterized for one hundred years or more by a system in which a small number of clubs dominate the competition and the remainder struggle to break even financially, and frequently experience episodes of financial distress. The chapter outlines the extent and similarity of dominance across European leagues, describes the various routes by which some leading clubs have become dominant, and then outlines how Sutton’s exogenous sunk cost theory can account generically for the phenomenon of dominance. The chapter then reviews the extent of financial distress in European football.