Historical Perspectives on Sports Economics
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Historical Perspectives on Sports Economics

Lessons from the Field

Edited by John K. Wilson and Richard Pomfret

The sports sector, apart from being of economic significance in itself, is clearly one that many citizens share a great interest in. It is not mere results, but aspects such as history, statistics, interest in labour markets and finances that often spark people’s interest. Historical Perspectives on Sports Economics explores a variety of topics including mega-event analysis, sports governance, anthropometrics, gambling, industrial organisation, infrastructure development and racial issues. 
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Chapter 12: Club survival in the English Premier League: what does it take to survive in the top flight?

Jeffrey Chang, Luc Borrowman and Lionel Frost


We identify the factors that determine the duration of club survival in the English Premier League (EPL), an open sports league based on promotion and relegation. Using survival analysis models for data from 25 seasons since the inception of the EPL in 1992-93, our results show four main predictors of club survival: club annual revenue, composition of foreign players, manager experience, and number of re-entries into the league. We find evidence of a liability of newness, the proposition that firm age is directly association with firm survival in a given industry, with over half of all promoted clubs being relegated within three years.

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