DP13927 The interdependence of domestic and international success: the case of the UEFA Champions League

Author(s): Juan D. Moreno-Ternero, Shlomo Weber
Publication Date: August 2019
Keyword(s): competitive balance, domestic competitions, international competitions, Nash equilibrium, UEFA Champions League
JEL(s):
Programme Areas: Public Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=13927

This article explores interdependence of domestic and international success in sports where leading clubs enter international competitions while competing in their domestic leagues. Taking as starting point the success of Spanish football teams in the UEFA Champions League during the 2008-2018 decade, we provide a stylized game-theoretical model in which national competitions determine the level of competitive balance therein. We rationalize the hypothesis that intermediate levels of competitiveness within domestic competitions are instrumental in achieving international success.