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In English football, there are two main competitions, the round robin League and the Football Association Cup (FA Cup) which is a knockout competition. The FA Cup has gate revenue sharing while the League competitions do not. We exploit the randomness of the FA Cup draw- both in terms of home advantage and selection of opponent to show how progress in the FA Cup can help raise the performances of lower division teams in current and later seasons. We apply a data set of seasonal league positions, team payrolls, team attendances and performances in the FA Cup over 1999/2000 to 2014/15. We use instrumental variable estimation to deal with potential endogeneity of team FA Cup matchday attendances as a measure of Cup performance. Our results show significant spillover effects of FA Cup progress on subsequent League performances. Hence, the FA Cup and its associated gate revenue sharing mechanisms are important for League performances of lower division teams in English football.
Presenter(s)
Robert Simmons, Lancaster University
Non-Presenting Authors
Ian Walker, Lancaster University
Does Gate Revenue Sharing Work?
Category
Organized Session Abstract Submission
Description
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Session: [032] EXPLORATIONS IN SPORTS ECONOMICS 2 Date: 4/11/2023 Time: 4:45 PM to 6:30 PM