Revision

Question 1

What is meant by uncertainty of outcome? (Key terms)

Answer 1

Likely outcome
Predictability
Probability

Question 2

What does the literature say of the effects of uncertainty of outcome on the size of stadium attendances and television audience viewership?

Answer 2

In theory as uncertainty of outcome increases so does stadium attendances but in reality, according to the literature, stadium attendances prefer certainty of outcome

Question 3

What are the best ways to measure uncertainty of outcome and why?

Answer 3

Betting odds -
Because they take into account for all information surrounding a fixture (e.g. Messi)
Because it takes into account historical, present and future information

Question 4

Fundamentals of Competitive Balance (3)

Answer 4

Access to markets
Ability to build support over time
Ability to pay and attract superstar athletes

Question 5

Distinction between sporting and economic competition (4)

Answer 5

Monopolising success
Benefits to consumers of sporting competition
League and individual club objectives
Incompatible

Question 6

League Policies and Management Practices in US (4)

Answer 6

Revenue sharing
Payroll caps
Draft
Luxury tax

Question 7

League Policies and Management Practices in Europe

Answer 7

Gate revenue sharing

TV revenue sharing

Question 8

3 Dimensions of Competitive Balance

Answer 8

Long-run (distribution of championships over time)
Seasonal (within season)
Short-run (match uncertainty and outcome of contest)

Question 9

Measuring Long-Run Dimension

Answer 9

Concentration index - proportion of championships (or points) by top n teams e.g. CI4: dominance of top 4 teams
Lorenz Curve - deviation from perfect equality (careful interpretation necessary)

Question 10

Main advantage of Concentration Index

Answer 10

Intuitive and easy to understand (good)

Question 11

Cons of Concentration Index (3)

Answer 11

Doesn’t capture imbalance within top n teams
Doesn’t fully capture competitive balance
Measure could indicate imbalance when there’s balance

Question 12

Measuring Seasonal Dimension

Answer 12

Statistical measures - range, variance or deviation

Question 13

What is Standard Deviation?

Answer 13

Dispersion from mean

If SD is low, competitive balance is high

Question 14

Competitive Balance is often measured by:

Answer 14

Standard Deviation of actual wins divided by idealised SD

As the measure increases, competitive balance worsens

Question 15

Dobson and Goddard’s Algorithm for European Football

Answer 15

In contention for title promotion, Europe or relegation, by taking 3 points from remaining matches and other take single points from remaining matches

Question 16

Measuring Match Uncertainty

Answer 16

Betting odds
Odds converted into probabilities
Most uncertain match (equal chance of home, draw and away outcome)

Question 17

Knowles et al. (1992) Control Variables (6)

Answer 17

Game quality
Weekend or evening
Population
Unemployment
Income per capita
Distance between home team and visitors

Question 18

Knowles et al. (1992) Focus Variable

Answer 18

Probability of home win

Question 19

Knowles et al. (1992) MLB Findings

Answer 19

home win prob : away win prob

0.6 : 0.4

Question 20

English Football Control Variables

Answer 20

Previous seasons home and away attendances
Teams points per game
Team wages
Derby
Distance
Public holiday
Weekday match not televised
Televised
N.B. focus variable the same (home team probability)

Question 21

Policy Implications for Uncertainty of Outcome

Answer 21

Maximising CB and OU is to essentially override stadium goers preferences which is for imbalance

Question 22

Policy Initiatives

Answer 22

Gate revenue sharing
TV revenue sharing
Salary capping