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Research Article

How the UEFA Champions League divided Europe and harmed competitive balance within domestic leagues

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ABSTRACT

By fulfilling the gaps in the competitive balance literature in the sports industry and referring to Resource Dependence Theory, we analysed the mutually dependent relationship between UEFA and elite European football clubs, and precisely, elite clubs’ attempt to establish European Super League. Then, we examined the competitive balance within the top five European leagues and the UEFA Champions League and how unprecedented hegemony has occurred such that Juventus, Bayern Munich, PSG, Manchester City, and Barcelona won at least half of their national league titles in the last decade. Findings suggested that firstly participation rules and revenue distribution policies applied by UEFA in the Champions League may have harmed the competitive balance within national leagues. Secondly, increasing financial differences due to UEFA’s policies might also increase the power asymmetry between the top five and semi-periphery countries. Finally, we discussed what UEFA and football federations should do to eliminate these competitive disadvantages.

Disclosure statement

No potential conflict of interest was reported by the author.

Notes

1. Downward, Dawson, and Dejonghe, Sports Economics, Evidence and Policy.

2. Scelles et al, “Competitive Balance Versus Competitive Intensity”, 4184–92.

3. Vrooman, “Sportsman Leagues”.

4. Groot, Economics, Uncertainty and European Football.

5. Koenigstorfer, Groeppel-Klein, and Kunkel, “Attractiveness of National and International Football Leagues”.

6. Ramchandani et al, “A Longitudinal and Comparative Analysis”.

7. Groot, Economics, Uncertainty and European Football.

8. Pawlowski, Breuer, and Hovemann, “Top Clubs” Performance’.

9. Fort, “Managerial Objectives”, 75.

10. Leach and Szymanski, “Making Money out of Football”, 25.

11. Kesenne, “Revenue Sharing and Absolute League Quality”, 51.

12. Sloane, “Economics of Professional Football”, 121.

13. Késenne, “Win Maximization Model Reconsidered”, 416.

14. Dobson and Goddard, The Economics of Football.

15. Hoehn and Szymanski, “Americanization of European Football”.

16. Pfeffer and Salancik, The External Control of Organizations.

17. Drees and Heugens,“Synthesizing and Extending Resource Dependence Theory”.

18. Daft, Organization Theory and Design, 158–9.

19. Hatch and Cunliffe, Organization Theory, 70–1.

20. Daft, Organization Theory and Design, 158–9, 181–2.

21. Pfeffer and Salancik, The External Control of Organizations.

22. Hillman, et al., “Resource Dependence Theory”.

23. Davis and Cobb, “Resource Dependence Theory”.

24. Casciaro and Piskorski, “Power Imbalance, Mutual Dependence, and Constraint Absorption”.

25. Mintzberg, “Power and Organization Life Cycles”, 208.

26. Emerson, “Power-Dependence Relations”.

27. Casciaro and Piskorski, “Power Imbalance, Mutual Dependence, and Constraint Absorption”, 170.

28. Pfeffer and Salancik. The External Control of Organizations.

29. Ibid.

30. Doidge, Football Italia.

31. Erzik, Olmaz Olmaz Demeyin, 293–4.

32. Ibid., 294–5.

33. Ibid., 296.

34. Davis and Cobb, “Resource Dependence Theory”.

35. Erzik, Olmaz Olmaz Demeyin, 335.

36. Ibid., 336.

37. Ibid., 338.

38. Ibid., 337–8.

39. Ibid., 338.

40. Ibid., 338.

41. Ibid., 339.

42. Drees and Heugens,“Synthesizing and Extending Resource Dependence Theory”.

43. Plumley and Flint, “The UEFA Champions League”.

44. Pawlowski, Breuer, and Hovemann, “Top Clubs” Performance’.

45. UEFA, “How Clubs” 2019/20 UEFA Champions League Revenue Will Be Shared’.

46. Kotter, “Managing External Dependence”.

47. Pawlowski, Breuer, and Hovemann, “Top Clubs” Performance’.

48. “Champions League, I Ricavi Delle Squadre Dal 1992 al 2020”, Sky Sport, February 15, 2021, https://sport.sky.it/calcio/champions-league/2021/02/15/champions-league-ricavi-squadre-1992–2020.

49. Plumley and Flint, “The UEFA Champions League”, 247.

50. Ibid., 247.

51. UEFA to UEFA Member Associations.

52. Transfermarkt, “Soccer Player Transfers by Highest All-Time Transfer Fee Worldwide as of September 2021 (In Million Euros)”.

53. UEFA, “UEFA Champions League Performance and Bonus Payments to Clubs from 2005/06 to 2021/22 (In Million Euros)”.

54. UEFA to UEFA Member Associations.

55. Ibid.

56. Zimbalist, “Competitive Balance Conundrums”, 161–3.

57. Andreff and Staudohar, “Evolving European Model”.

58. UEFA, “Statement by UEFA”.

59. Kossakowski, “From the Bottom to the Premiership”.

60. Ring and Van de Ven, “Structuring Cooperative Relationships”.

61. Morgan and Hunt, “The Commitment-Trust Theory”.

62. Andaleeb, “Experimental Investigation of Satisfaction”.

63. Agence France-Presse, “European Super League: UEFA Official Warns ‘There Will Be Consequences’ for 12 Clubs Involved”, Firstpost,, https://www.firstpost.com/sports/european-super-league-uefa-official-warns-there-will-be-consequences-for-12-clubs-involved-9553341.html (April 21, 2021).

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