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Broadcasting And Team Sports

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  • Roger G. Noll

Abstract

Television rights are the largest component of revenues for major sports in large, rich nations. Among these nations, the market structure for rights varies due to different competition policies towards sports and television. This essay examines how game coverage, revenues and competitive balance are affected by competition in commercial television and sales of rights. It argues that consumers are better off if television is competitive and leagues do not centralize rights sales. We conclude that centralization of rights sales does not improve competitive balance or benefit financially weak teams. Finally, while digital telecommunications are making television competitive, ending centralization of sales by leagues requires policy intervention.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Article provided by Scottish Economic Society in its journal Scottish Journal of Political Economy.

Volume (Year): 54 (2007)
Issue (Month): 3 (07)
Pages: 400-421

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Handle: RePEc:bla:scotjp:v:54:y:2007:i:3:p:400-421

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References

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  1. Thomas Hoehn & Stefan Szymanski, 1999. "The Americanization of European football," Economic Policy, CEPR;CES;MSH, CEPR;CES;MSH, vol. 14(28), pages 203-240, 04.
  2. Stephen Allan, 2004. "Satellite television and football attendance: the not so super effect," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 11(2), pages 123-125.
  3. Mark Baimbridge & Samuel Cameron & Peter Dawson, 1995. "Satellite broadcasting and match attendance: the case of rugby league," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 2(10), pages 343-346.
  4. Stefan Szymanski & Stephanie Leach, 2006. "Tilting the Playing Field (Why a sports league planner would choose less, not more, competitive balance): The case of English Football," Working Papers, International Association of Sports Economists;North American Association of Sports Economists 0619, International Association of Sports Economists;North American Association of Sports Economists.
  5. David Forrest & Robert Simmons & Babatunde Buraimo, 2005. "Outcome Uncertainty And The Couch Potato Audience," Scottish Journal of Political Economy, Scottish Economic Society, Scottish Economic Society, vol. 52(4), pages 641-661, 09.
  6. Alessandra Tonazzi, 2003. "Competition policy and the commercialization of sport broadcasting rights: The decision of the Italian Competition Authority," International Journal of the Economics of Business, Taylor & Francis Journals, Taylor & Francis Journals, vol. 10(1), pages 17-34.
  7. Tom Hoehn, 2003. "Broadcasting and Sport," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 19(4), pages 552-568, Winter.
  8. Hausman, Jerry A & Leonard, Gregory K, 1997. "Superstars in the National Basketball Association: Economic Value and Policy," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 15(4), pages 586-624, October.
  9. Spence, A Michael & Owen, Bruce, 1977. "Television Programming, Monopolistic Competition, and Welfare," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 91(1), pages 103-26, February.
  10. Jaume Garcia & Plácido Rodríguez, 2001. "The determinants of football match attendance revisited: Empirical evidence from the Spanish Football League," Economics Working Papers, Department of Economics and Business, Universitat Pompeu Fabra 555, Department of Economics and Business, Universitat Pompeu Fabra.
  11. Fort, Rodney, 2000. "European and North American Sports Differences(?)," Scottish Journal of Political Economy, Scottish Economic Society, Scottish Economic Society, vol. 47(4), pages 431-55, September.
  12. Cave, Martin & Crandall, Robert W, 2001. "Sports Rights and the Broadcast Industry," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 111(469), pages F4-26, February.
  13. David Forrest & Rob Simmons & Stefan Szymanski, 2004. "Broadcasting, Attendance and the Inefficiency of Cartels," Review of Industrial Organization, Springer, Springer, vol. 24(3), pages 243-265, 05.
  14. Sloane, Peter J, 1971. "The Economics of Professional Football: The Football Club as a Utility Maximiser," Scottish Journal of Political Economy, Scottish Economic Society, Scottish Economic Society, vol. 18(2), pages 121-46, June.
  15. Baimbridge, Mark & Cameron, Samuel & Dawson, Peter, 1996. "Satellite Television and the Demand for Football: A Whole New Ball Game?," Scottish Journal of Political Economy, Scottish Economic Society, Scottish Economic Society, vol. 43(3), pages 317-33, August.
  16. Richard Wurff, 2005. "Competition, Concentration and Diversity in European Television Markets," Journal of Cultural Economics, Springer, Springer, vol. 29(4), pages 249-275, November.
  17. Cowie, Campbell & Williams, Mark, 1997. "The economics of sports rights," Telecommunications Policy, Elsevier, Elsevier, vol. 21(7), pages 619-634, August.
  18. Anthony Boardman & Shaun Hargreaves-Heap, 1999. "Network Externalities and Government Restrictions on Satellite Broadcasting of Key Sporting Events," Journal of Cultural Economics, Springer, Springer, vol. 23(3), pages 165-179, August.
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Citations

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Cited by:
  1. Oliver Budzinski & Janina Satzer, 2008. "Sports Business and the Theory of Multisided Markets," MAGKS Papers on Economics, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) 200811, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  2. repec:lan:wpaper:3575 is not listed on IDEAS
  3. Pelnar, Gregory, 2007. "Antitrust Analysis of Sports Leagues," MPRA Paper 5382, University Library of Munich, Germany.
  4. repec:lan:wpaper:3966 is not listed on IDEAS
  5. Buraimo, Babatunde & Simmons, Rob, 2009. "A tale of two audiences: Spectators, television viewers and outcome uncertainty in Spanish football," Journal of Economics and Business, Elsevier, Elsevier, vol. 61(4), pages 326-338, July.
  6. repec:lan:wpaper:3573 is not listed on IDEAS
  7. Oliver Budzinski & Janina Satzer, 2011. "Sports Business and Multisided Markets: Towards a New Analytical Framework? (Long Version)," Working Papers, University of Southern Denmark, Department of Environmental and Business Economics 109/11, University of Southern Denmark, Department of Environmental and Business Economics.
  8. repec:lan:wpaper:3681 is not listed on IDEAS

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