Relationship Between Success and Competition: The Analysis of Selected European Football Leagues

Abstract

Structure-Conduct-Performance Analysis states that market structure has an impact on firm behaviour and market performance. In other words competitive market structure affects firms’ and market performance in positive manner. Concentration ratios which are element of market structure, also affects market performance. There is both difference as well as similarities between competition of football teams and of firms. It is thought that these similarities affect the success of football teams in international arena. The aim of this research is to discuss whether European national league structure affects the performance of teams in Champions League and European League. To this aim, concentration ratios in European national leagues are calculated by using Herfindahl-Hirschman index. These results are interpreted by considering the differences between competition of football teams and of firms. National leagues (Spain, England, Germany, Italy, France, Netherland, Portugal, Belgium, Russia and Turkey) in which football teams are successful in Champions league and European League are studied. It is revealed that concentration ratios are low except England Premier League and have increased at last years. Additionally, the hypothesis which says that as concentration in national leagues decreases the success of teams in international arena increases couldn’t be confirmed.