68 Pablo Castellanos García, Jesús A. Dopico Castro and José M. Sánchez SantosUsually, there is a very strong link between a football team and <strong>it</strong>s hostc<strong>it</strong>y. However, professional football teams in Europe are not formally localmonopolies w<strong>it</strong>h a permanent major league status, because poor performance onthe field brings on relegation while good performance allows teams to compete ininternational championships. Taking into account these considerations, a c<strong>it</strong>y canhost none, one or several successful football teams. Obviously, compet<strong>it</strong>ivenessand international football success <strong>di</strong>ffer mark<strong>ed</strong>ly across in<strong>di</strong>vidual European c<strong>it</strong>ies.From this perspective, an interesting research topic is the analysis of the spatial<strong>di</strong>stribution of successful football teams (c<strong>it</strong>ies) throughout Europe.There is a wide l<strong>it</strong>erature dealing w<strong>it</strong>h the issue of whether professionalsports help local economies to develop, but in our case we address the con<strong>di</strong>tionsthat determine locations in which there are opportun<strong>it</strong>ies to strengthen the successof a team. 1 The l<strong>it</strong>erature that specifically deals w<strong>it</strong>h the determinants of successin international football is bas<strong>ed</strong> on models of national teams’ success. Most ofthese stu<strong>di</strong>es consider countries as relevant un<strong>it</strong>s of analysis and in general theyare primarily interest<strong>ed</strong> in testing the influence of social, demographic, economic,cultural and geographic factors on national teams’ performance.In contrast to previous research, this paper analyses the determinants ofsuccess taking c<strong>it</strong>ies instead of countries as un<strong>it</strong>s of analysis. 2 Consequently, theidea is slightly <strong>di</strong>fferent and our main interest is to verify in what extent economicand demographic factors have an impact on c<strong>it</strong>ies club teams success. We areconcern<strong>ed</strong> about verifying if a commun<strong>it</strong>y abil<strong>it</strong>y to support a successful footballteam is a function of the size and wealth of <strong>it</strong>s population. In this way, we will beable to study not only the spatial <strong>di</strong>stribution of football success across countriesbut also the outcomes of in<strong>di</strong>vidual c<strong>it</strong>ies. In other words, we are interest<strong>ed</strong> inknowing to what extent successful professional teams can get sufficient support ifthey are locat<strong>ed</strong> in c<strong>it</strong>ies w<strong>it</strong>h big potential markets, that is, in prof<strong>it</strong>able places.This kind of stu<strong>di</strong>es can be relevant since they attempt to sh<strong>ed</strong> some light on therole of some variables (market size proxies) that may create a revenue-generatingadvantage. In this respect, taking into account that geographic ties generate fanloyalty, bigger c<strong>it</strong>ies ought to yield higher revenue to owners than smaller ones.This is not a trivial aspect because <strong>it</strong> will probably affect the choices of investorswhen deci<strong>di</strong>ng on buying a club. 3Our approach is mark<strong>ed</strong>ly empirical and the analysis was design<strong>ed</strong> touncover the connection between c<strong>it</strong>ies economic features and their football teams’success. In particular, we focus our analysis on verifying the extent in which____________________1Although most of European clubs do not have the real abil<strong>it</strong>y to move, <strong>it</strong> can be assum<strong>ed</strong> thatsuccess is mobile.2To our knowl<strong>ed</strong>ge, this is the first attempt to consider the main c<strong>it</strong>ies of Europe as the relevantun<strong>it</strong>s of analysis.3For example, an important Italian Hollywood movie-producer bought the Naples Team. At thesame time, few years ago a Br<strong>it</strong>ish financial company bought a stake in a small northern team(Vicenza). The evidence shows that the latter has been unsuccessful whilst the first <strong>it</strong> is suppos<strong>ed</strong>to stay in the top-level teams in the next years.
The economic geography of football success: empirical evidence from European c<strong>it</strong>ies 69variables proxying market size and economic development determine the locationof successful football teams. To take into account the first factor, we use the totalpopulation, while the second factor is represent<strong>ed</strong> by the per cap<strong>it</strong>a gross domesticproduct (GDPpc). Therefore, we incorporate through a r<strong>ed</strong>uc<strong>ed</strong> form specificationsome elements which are almost omnipresent in l<strong>it</strong>erature, leaving the question ofour interest to empirical research. Although most of the models in this field includepopulation and GDP (or per cap<strong>it</strong>a GDP) as independent variables, if we studythese determinants taking the c<strong>it</strong>y as un<strong>it</strong> of analysis, the impact of variables suchas population or income can be essentially <strong>di</strong>fferent.The rest of the paper is organiz<strong>ed</strong> as follows. The next section offers areview of l<strong>it</strong>erature dealing w<strong>it</strong>h socioeconomic determinants of international sportperformance. The second section presents a <strong>di</strong>scussion about the underlyingtheoretical framework on which our analysis is bas<strong>ed</strong>. In the third section we developthe empirical analysis. The final section summarizes the key fin<strong>di</strong>ngs and providesa <strong>di</strong>scussion on the implications of our research.1. The geography of successful football teams: an analytical frameworkRecently, a growing economic l<strong>it</strong>erature has examin<strong>ed</strong> what factors lead nationalteams to succe<strong>ed</strong> in international football compet<strong>it</strong>ions. In general, the l<strong>it</strong>eraturethat analyses the sources of international football performance is bas<strong>ed</strong> on previousresearch on the determinants of success in Olympic Games. 4 It would seemreasonable to suspect that variables explaining performance over a range of sports(in Olympic Games) should partially explain countries success in internationalfootball compet<strong>it</strong>ions.The more recent stu<strong>di</strong>es in this field identify determinants of success of avery <strong>di</strong>verse nature: demographic, economic, cultural, pol<strong>it</strong>ical and climatic. Tosum up, this kind of stu<strong>di</strong>es on Olympic success have found that <strong>it</strong> is partiallyexplain<strong>ed</strong> by factors such as population size, per cap<strong>it</strong>a GDP, as well as certainclimatic, 5 pol<strong>it</strong>ical, 6 and cultural variables. 7 Other relevant factors would be sport____________________4Seminal papers dealing w<strong>it</strong>h the determinants of Olympic success include D. W. BALL, OlympicGames compet<strong>it</strong>ion: structural correlates of national success, in Int. J. of Comp. Soc., vol. 15,1972, 186-200. A. R. GRIMES, W. J. KELLY, P. H. RUBIN, A socioeconomic model of nationalOlympic performance, in Soc. Sc. Quart., vol. 55, 1974, 777-782. N. LEVINE, Why do countrieswin Olympic m<strong>ed</strong>als? Some structural correlates of Olympic Games success, in Soc. and Soc.Res., vol. 58, 1974, 353-360.5R. HOFFMANN, C. G. LEE, B. RAMASAMY, Public policy and Olympic success, in Ap. Ec. Let., vol.9, 2002, 545-548. D. K. N. JOHNSON, A. ALI, A tale of two seasons: participation and m<strong>ed</strong>alcounts at the summer and winter Olympic Games, Wellesley College Department of Economicsworking paper n. 2002-02, 2002. G. ROBERTS, Accounting for achievement in Athens: a countdata analysis of national Olympic performance, Univers<strong>it</strong>y of Victoria Department of EconomicsEconometrics working paper n. EWP-0602, 2006. B. TORGLER, Historical excellence in FootballWorld Cup tournaments: empirical evidence w<strong>it</strong>h data from 1930 to 2002, in Riv. Dir. Ec. Sp.,vol. 2, n. 1, 2006, 101-117.6R. HOFFMANN, C. G. LEE, B. RAMASAMY, Public policy and Olympic success, c<strong>it</strong>. D. K. N. JOHNSON,
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