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Journal of Sports Economics
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Evaluating Rent Dissipation in the Spanish Football Industry

Guido Ascari

Università di Pavia, Italy

Philippe Gagnepain

Universidad Carlos III, Madrid

This article proposes to evaluate empirically the consequences of the rent-seeking behavior of football clubs on their costs. The empirical work entails estimating a football wage, result, and demand system with data on clubs competing in the first and second Spanish leagues during the 1996-2003 seasons. The estimation sheds light on wage distortions that differ from 45% to 52% throughout the period considered. This provides an interesting illustration of the financial difficulties faced recently by many European football clubs.

Key Words: football industry • wage distortion • frontier • football demand

Journal of Sports Economics, Vol. 8, No. 5, 468-490 (2007)
DOI: 10.1177/1527002506292582
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