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Sports management field lab - "the effect of the competition in the Telecom market on football broadcasting revenues : creation and application of potential distribution models in the Portuguese league"
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This study explores how collective bargaining impacts the broadcasting profits of Portuguese football
clubs. It also explores how the competitive nature of the broadcast market impacts the economics of
clubs, concentrating on the OTT model.
Due to technology, the streaming TV/online video business model, and Pay-high TV saturation, OTT
football viewership may alter broadcast industry competitiveness and club revenues. Sport TV, the
only premium sports channel with I League broadcast rights, is owned by the leading operators,
therefore restricting the number of new entrants.
Even though football quality must be enhanced, qualitative research indicates that competitive
equilibrium is the most important factor of the football's attractiveness. Consumers prefer TV over
other networks (smartphones, tablets, PC). Regardless, there is a willingness to switch for OTT
broadcasting football.
There is no assurance that adopting a collective bargaining model will promote competitive
equilibrium, but it would likely harm the financial stability of several Portuguese League clubs
(mostly the top three). This negative influence could impact the international performance of
Portuguese teams, reducing the international coefficient of the Portuguese football organization.
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Football Competition Portuguese league Strategy Telecom markets Collective bargaining Ott model Broadcasting revenues Illegal access