Between-seasons competitive balance in European football: review of existing and development of specially designed indices

Competitive balance is a key issue for any professional sport league substantiated by its effect on demand for league games or other associated products. This work focuses on the measurement of between-seasons competitive balance, the longest time-wise dimension, which captures the relative quality of teams across seasons. The review of the existing indices examines their applicability in the context of European football. Given that domestic championships are multi-prized tournaments, as opposed to the more common North American unitary structure with a single prize, a set of specially designed indices that capture the complex structure of European football are introduced. An empirical investigation, using data from the English Premier League, further elucidates the main features of all appropriate indices by exploring their value and trend. It may be inferred that between-seasons competitive balance in England worsens through seasons mainly due to the very low ranking mobility of the top teams through seasons.