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

Abstract

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.