Working Paper: CEPR ID: DP13927
Authors: Juan D. Morenoternero; Shlomo Weber
Abstract: This article explores interdependence of domestic and international success in sportswhere leading clubs enter international competitions while competing in their domesticleagues. Taking as starting point the success of Spanish football teams in the UEFAChampions League during the 2008-2018 decade, we provide a stylized game-theoreticalmodel in which national competitions determine the level of competitive balance therein.We rationalize the hypothesis that intermediate levels of competitiveness within domesticcompetitions are instrumental in achieving international success.
Keywords: competitive balance; domestic competitions; international competitions; Nash equilibrium; UEFA Champions League
JEL Codes: C71; Z20
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| intermediate levels of competitive balance in domestic leagues (Z21) | international success in competitions (F53) |
| competitive balance in domestic leagues (Z22) | success of Spanish teams in international competitions (Z20) |
| high competitiveness in domestic leagues (Z21) | drain resources and focus from international efforts (F35) |
| low competitiveness in domestic leagues (Z21) | teams unprepared for international play (Z22) |
| competitive balance of La Liga (Z23) | effectiveness of teams in Europe (M54) |