Competitive balance and gate revenue sharing in team sports
نویسندگان
چکیده
منابع مشابه
Optimal gate revenue sharing in sports leagues
Sports leagues constitute one of the few examples of legally operating cartels. In this paper I examine how gate revenue sharing may serve to coordinate talent investments within these cartels. I show that sharing revenues has the potential to raise cartel profits, because it decreases the incentive to invest in playing talent. Leagues consisting of teams with heterogeneous local markets should...
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This paper develops a contest model of a professional sports league in which clubs maximize a weighted sum of profits and wins (utility maximization). The model analyzes how more win-orientated behavior of certain clubs affects talent investments, competitive balance and club profits. Moreover, in contrast to traditional models, we show that revenue sharing does not always reduce investment inc...
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The North American model of resource allocation in professional sports leagues is adapted for English (association) football. The theoretical relationship between revenue and competitive balance is shown to be robust with respect to changes in teams’ objectives and labour market conditions. Empirical revenue functions are reported for 1926-1999. These indicate a shift in the composition of dema...
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This paper starts with the observation that in most individualistic sports (e.g. golf, tennis, boxing) rewards are highly dependent on performance, while in most team sports direct rewards are almost independent of performance. This paper takes the perspective of Contest (Tournament) Theory and considers the incentive properties of revenue sharing agreements which are performance independent an...
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We analyze the distribution of broadcasting revenues by sports leagues. In the context of an isolated league, we show that when the teams engage in competitive bidding to attract talent, the league's optimal choice is full revenue sharing (resulting in full competitive balance) even if the revenues are independent of the level of balancedness. This result is overturned when the league has no mo...
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ژورنال
عنوان ژورنال: Journal of Industrial Economics
سال: 2004
ISSN: 0022-1821,1467-6451
DOI: 10.1111/j.0022-1821.2004.00220.x