The effect of geographical proximity and rivalry on performance: evidence from the English Football League

ABSTRACT

Using data on league position for clubs that have participated in English football leagues for 21 seasons, this paper tests, using spatial econometric techniques, whether clubs’ within-season performances are positively affected by better performances of other clubs located geographically closer to them. The paper provides evidence of positive spatial dependence between clubs’ performance. This means that proximity to high-performing clubs drives others to perform better, ceteris paribus. This is consistent with the view in regional analysis that spatial factors are important considerations in understanding business performance.

KEYWORDS:

• geographical proximity
• local rivalry
• sport

JEL:

• M21
• R1
• Z2

DISCLOSURE STATEMENT

No potential conflict of interest was reported by the authors.

SUPPLEMENTAL DATA

Supplemental data for this article can be accessed http://doi.org/10.1080/00343404.2017.1414177.

ORCID

Justin Doran https://orcid.org/0000-0002-9875-901X

Declan Jordan http://orcid.org/0000-0002-2446-0111

Notes

1. Although referred to as the English League, it also includes Cardiff City and Swansea City, both from Wales.

2. These clubs vary from year to year due to the fact that clubs are promoted and relegated from the Premier League on a yearly basis.