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Discussion Paper Details

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Title: Talent Development and Labour Market Integration: The Case of EU Football

Author(s): Pehr-Johan Norbäck, Martin Olsson and Lars Persson

Publication Date: February 2018

Keyword(s): Bosman ruling, Champions League, Sports industry and star players

Programme Area(s): Industrial Organization

Abstract: We analyse how the Bosman ruling changed the incentives for football clubs in the European Union (EU) to develop talents. We show that the stiffer bidding competition over star players after the Bosman ruling has spurred talent development primarily in EU countries without established top clubs. This, in turn, has had a positive impact on their junior and senior national teams' performance. However, the stiffer bidding competition has also led to a lower competitive balance 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.

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Bibliographic Reference

Norbäck, P, Olsson, M and Persson, L. 2018. 'Talent Development and Labour Market Integration: The Case of EU Football'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=12702