PurposeThe article presents an empirical analysis that evaluates the effects of a systemic corruption scandal on the demand in the short and the long run. In 2006, the Calciopoli scandal uncovered the match rigging in the Italian soccer first division. The exemplary sportive sanction of relegating the primary culprit to the second division imposed further negative externalities on the other clubs. Should we prefer the sportive sanction on the team or the monetary fines for the club?Design/methodology/approachWe estimated two log-linear models of the demand side (stadium attendance) using a fixed effect estimator, on two panel data set made of all the Italian soccer clubs in the first and second division (Serie A and Serie B) for the seasons 2004/2005 to 2009/2010, considering the relegation of the Juventus as the event which impacted the demand for soccer.FindingsRelegating Juventus to Serie B caused an immediate decrease of 18.4% in the attendance for all the teams, both in Serie A and in Serie B, for the three seasons considered, and 1% decrease when all the seasons are considered to measure the fallout of the scandal on the fans' disaffection.Originality/valueThe effect of corruption in sport on demand is an important issue, and there are few studies already published. As for sports economics and management, our results are of interest for sport-governing bodies – as a case study that can help in designing a more effective sanctioning system to prevent corruption episodes.

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The training and development of young players both as athletes and individuals is one of the task soccer governing bodies assign to professional soccer team in order to fully exploit the social aspects of sport activities. Recently UEFA imposed new rules to improve the use of home-grown players. We analyze a panel data of English Premier and Championship league clubs for the seasons 2001-02 to 2005-06 in order to understand what clubs characteristics lead to the employment of young players in the team during official matches. Sport commercialization and the employment of star players have been considered harmful to this role. Our findings suggest that, counter-intuitively, economic and commercial aspects of clubs are not important for the development of home-grown players, for example well paid players do not crowd-out home-growns. Managerial policies play a significant role. Major clubs in the Premier league deploy home-grown less often; leasing them to the Championship league could be a solution. Attendance favors home-grown players, which hints at a more active communication policy for the clubs in order to nurture the link with the local community. These results suggest social responsible strategies for Premier League clubs in order to improve their perceived social role and to avoid invasive interventions from national and international governing bodies in their managerial decisions on the clubs.

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