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Revenue Sharing and Absolute League Quality; Talent Investment and Talent Allocation

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  • Stefan Kesenne

Abstract

type="main" xml:id="sjpe12062-abs-0001"> Beside the competitive balance or the relative quality of teams in a sports league, also a league's absolute quality matters to attract spectators. If the absolute quality depends among other variables, on the total budget of the league, it can be shown that that revenue sharing enhances the absolute quality by improving the allocation of talent over the teams in both a profit- and a win-maximisation league, even if it worsens the competitive balance.

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  • Stefan Kesenne, 2015. "Revenue Sharing and Absolute League Quality; Talent Investment and Talent Allocation," Scottish Journal of Political Economy, Scottish Economic Society, vol. 62(1), pages 51-58, February.
    • Handle: RePEc:bla:scotjp:v:62:y:2015:i:1:p:51-58
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    File URL: http://hdl.handle.net/10.1111/sjpe.2015.62.issue-1
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    References listed on IDEAS

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    1. Stefan Szymanski, 2010. "The Economic Design of Sporting Contests," Palgrave Macmillan Books, in: The Comparative Economics of Sport, chapter 1, pages 1-78, Palgrave Macmillan.
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    Cited by:

    1. Rockerbie, Duane & Easton, Stephen, 2021. "Multiple Equilibria and Unsustainable Runs in Major League Baseball: More Evidence," MPRA Paper 109971, University Library of Munich, Germany.
    2. Duane Rockerbie & Stephen Easton, 2018. "Revenue Sharing in Major League Baseball: The Moments That Meant so Much," IJFS, MDPI, vol. 6(3), pages 1-16, August.
    3. Rockerbie, Duane & Easton, Stephen, 2017. "Revenue Sharing in Professional Sports Leagues as a Hedge for Exchange Rate Risk," MPRA Paper 77428, University Library of Munich, Germany.
    4. Duane W. Rockerbie & Stephen T. Easton, 2019. "Of Bricks and Bats: New Stadiums, Talent Supply, and Team Performance in Major League Baseball," Journal of Sports Economics, , vol. 20(1), pages 3-24, January.
    5. Thadeu Gasparetto & Angel Barajas, 2022. "Wage Dispersion and Team Performance: The Moderation Role of Club Size," Journal of Sports Economics, , vol. 23(5), pages 548-566, June.
    6. Daniel Plumley & Rob Wilson & Robbie Millar & Simon Shibli, 2019. "Howzat? The Financial Health of English Cricket: Not Out, Yet," IJFS, MDPI, vol. 7(1), pages 1-17, February.
    7. Peter J. Sloane, 2015. "The Economics of Professional Football Revisited," Scottish Journal of Political Economy, Scottish Economic Society, vol. 62(1), pages 1-7, February.
    8. Jose Luis Felipe & Alvaro Fernandez-Luna & Pablo Burillo & Luis Eduardo de la Riva & Javier Sanchez-Sanchez & Jorge Garcia-Unanue, 2020. "Money Talks: Team Variables and Player Positions that Most Influence the Market Value of Professional Male Footballers in Europe," Sustainability, MDPI, vol. 12(9), pages 1-8, May.
    9. Rockerbie, Duane & Easton, Stephen, 2017. "Risk Diversification from Revenue Sharing in a Professional Sports League: Measuring Welfare Gains," MPRA Paper 77431, University Library of Munich, Germany.
    10. Thadeu Gasparetto & Angel Barajas, 2022. "Economic effects of promotion and relegation in parallel competitions," Economics and Business Letters, Oviedo University Press, vol. 11(1), pages 7-15.

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