Empirical Analysis of Brazilian Football Market
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Tese de Doutoramento 2017 Empirical Analysis of Broadcast Demand Demand, Competitive Balance, Demand for Tickets and Revenue Generation in Brazilian Football Market Doutoramento. Brazilian Football Market Brazilian in Thadeu Miranda Gasparetto Generation Generation “Mención Internacional” Thadeu Miranda Tese de Thadeu Gasparetto. Analysis Demand, Competitive Balance, Empirical of Broadcast Revenue for Tickets and Escola Internacional de Doutoramento Thadeu Miranda Gasparetto DOCTORAL DISSERTATION EMPIRICAL ANALYSIS OF BROADCAST DEMAND, COMPETITIVE BALANCE, DEMAND FOR TICKETS AND REVENUE GENERATION IN BRAZILIAN FOOTBALL MARKET Supervised by: Ángel Barajas Year: 2017 “International Mention” ACKNOWLEDGEMENTS I wish to express my sincere thanks to my supervisor Dr. Ángel Barajas. I am very grateful for all the effort he has made for my academic development. He was responsible for the several academic opportunities I had in Europe over this period and I thank him very much for that. His valuable advices and feedbacks in our researches, as well as his pursuit for excellence in all activities he does, taught me the true value of this degree. I would like to show appreciation of all IDLab members. That unexpected opportunity to visit Russia in 2015 has become a place of work with really great people. I am very proud to be a part of this team and thank you all for the constructive suggestions I have been receiving from you. I am very thankful to the Professor Sean Hamil. He opened the doors of Birkbeck, University of London, for me, where I have lived a remarkable academic and personal experience over three months. Living in London had always been a dream and studying there made possible to improve my English skills and obtain the International Mention. I am grateful for all members from the PhD Defence Committee. I would like to thank Dr. Antonio López Castedo regarding the academic support he offered me over all PhD program. I would also like to thank Vinicius Paiva and Dr. Ary Rocco for the data set provided, which allowed me the development of the broadcast demand chapter. I am thankful for Universidad de Vigo for the grant Axudas Predoutorais that I have been receiving since 2016, which contributed with my full dedication in the PhD program. I would like to thank all my friends and relatives in Brazil. It would be very unfair to quote names of some because I could forget others who also contributed in their own way. Regardless of the huge distance between Brazil and Spain, I spent amazing moments with them all the few times I came back home. At the same time, I appreciate all people I met at Facultad de Ciencias Empresariales y Turismo and the new friends I made in Spain and UK. I enjoyed a lot every time we played football or went out for some beers. Finally, I would like to thank my parents. Without their love and support over the last years this work would not have been possible. Although the Atlantic Ocean was between us, they have always been there for me. They will always be my examples and I must express gratitude to them for all the human values that I have. Thank you for everything. INDEX RESUMEN EN ESPAÑOL .......................................................................................... 17 CAPÍTULO 2: EL MERCADO BRASILEÑO DE FÚTBOL .................................................... 19 CAPÍTULO 3: EL IMPACTO DE CADA TORNEO EN LA GENERACIÓN DE INGRESOS ........... 19 CAPÍTULO 4: INFLUENCIA DEL FORMATO COMPETITIVO .............................................. 20 CAPÍTULO 5 : EL BALANCE COMPETITIVO ................................................................... 20 CAPÍTULO 6: DEMANDA DE ENTRADAS EN LA PRIMERA DIVISIÓN ............................... 21 CAPÍTULO 7: DIFERENCIA EN LA DEMANDA DE ENTRADAS EN CADA UNA DE LAS DIVISIONES DE LA LIGA BRASILEÑA ............................................................................ 22 CAPÍTULO 8: DEMANDA DE ENTRADAS: EFECTO REDISTRIBUTIVO DE INGRESOS EN LOS CAMPEONATOS ESTATALES ......................................................................................... 23 CAPÍTULO 9: DEMANDA DE FÚTBOL EN TELEVISIÓN .................................................... 24 CONCLUSIONES Y FUTURAS INVESTIGACIONES ........................................................... 25 1. INTRODUCTION ................................................................................................ 29 1.1. RESEARCH QUESTIONS AND METHODS ............................................................ 30 1.2. CONTRIBUTIONS .............................................................................................. 33 2. THE BRAZILIAN FOOTBALL MARKET ...................................................... 37 2.1. INSTITUTIONAL STRUCTURE ............................................................................ 37 2.2. SPORTING CALENDAR AND DOMESTIC TOURNAMENTS ................................... 38 2.2.1. Brazilian State Championships .................................................................. 40 2.2.2. Regional Championships ............................................................................ 41 2.2.3. Brazilian Cup .............................................................................................. 42 2.2.4. Brazilian League ........................................................................................ 43 2.3. ECONOMIC CONTEXT: LABOUR MARKET AND FINANCIAL ASPECTS ............... 44 2.3.1. Labour Market ............................................................................................ 44 2.3.2. Financial Aspects ....................................................................................... 46 3. THE IMPACT OF DIFFERENT TOURNAMENTS ON THE REVENUE GENERATION ............................................................................................................. 51 3.1. PROBLEM STATEMENT ..................................................................................... 51 3.2. METHODS ........................................................................................................ 52 3.3. RESULTS AND DISCUSSION .............................................................................. 55 3.4. FINAL REMARKS .............................................................................................. 57 4. THE INFLUENCE OF COMPETITIVE DESIGN .......................................... 59 4.1. PROBLEM STATEMENT ..................................................................................... 59 4.2. THEORETICAL BACKGROUND .......................................................................... 59 4.3. METHODS ........................................................................................................ 62 4.4. RESULTS .......................................................................................................... 64 4.4.1. Competitive Balance ................................................................................... 64 4.4.2. Fans’ Interest .............................................................................................. 68 4.4.3. Considerations about Brazilian Football ................................................... 70 4.5. FINAL REMARKS .............................................................................................. 72 5. COMPETITIVE BALANCE ............................................................................... 73 5.1. PROBLEM STATEMENT ..................................................................................... 73 5.2. THEORETICAL BACKGROUND .......................................................................... 74 5.3. METHODS ........................................................................................................ 76 5.3.1. The Model ................................................................................................... 76 5.3.2. Sample ........................................................................................................ 79 5.3.3. Statistical Analysis ...................................................................................... 79 5.3.4. The Dispersion of Positions ........................................................................ 80 5.3.5. Confrontation with Traditional Models ...................................................... 80 5.4. RESULTS AND DISCUSSION .............................................................................. 81 5.4.1. Index Validation ......................................................................................... 90 5.4.2. Competitive Balance and Average Attendance .......................................... 91 5.4.3. Limitations and Further Research .............................................................. 92 5.5. FINAL REMARKS .............................................................................................. 93 6. THE DEMAND FOR TICKETS IN THE BRAZILIAN LEAGUE’S FIRST DIVISION ..................................................................................................................... 95 6.1. PROBLEM STATEMENT ..................................................................................... 95 6.2. FOOTBALL STADIUMS IN BRAZIL ..................................................................... 97 6.3. THEORETICAL BACKGROUND ........................................................................ 100 6.4. METHODS ...................................................................................................... 103 6.4.1. Data .........................................................................................................