Working Paper No. 1126

The Emergence of a Market for Football Stars: Talent Development and Competitive Balance in European Football

Published: May 31, 2016Pages: 45Keywords: Sports industry; Star players; Champions League; Bosman rulingJEL-codes: J44; L50; L83

The Emergence of a Market for Football Stars: Talent Development and Competitive Balance in European Football Pehr-Johan Norbäck, Martin Olsson and Lars Persson

We analyze how the Bosman ruling affected the market for star players and talent development in the European football market. We develop a model with sports competition and endogenous ownership of star players in which we show how the stiffer bidding competition over star players after the Bosman ruling has spurred talent development foremost in EU nations lacking established top clubs.

This has a positive impact on their national teams’ performance. However, the stiffer bidding competition has also lead to less competition in the Champions League, as non-established clubs prefer to sell their star players instead of challenging the top clubs. We provide empirical evidence consistent with these findings.

Pehr-Johan Norbäck


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Martin Olsson


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Lars Persson


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Sick of Inequality?

An Introduction to the Relationship between Inequality and Health

Sick of Inequality.jpg

In this book Andreas Bergh, Therese Nilsson, IFN and Lund University, and Daniel Waldenström, IFN and Paris School of Economics, France, review the latest research on the relationship between inequality and health. What does inequality mean for our health? Does increasing income inequality affect outcomes such as obesity, life expectancy and subjective well-being?


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To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

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