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The Analysis of Professional Sports Leagues as Joint Ventures

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  • Flynn, Michael A
  • Gilbert, Richard J

Abstract

This paper addresses whether the welfare analysis of the agreements and rules of a professional sports league should depend on the organisational form chosen by the league's participants. Courts have analysed sports leagues both as associations of horizontal competitors and as single entities. The former approach suggests much less tolerance for rules that affect competition. Drawing on the distinction between ex ante and ex post competition that has been found useful in the economic analysis of intellectual property rights, the authors suggest a middle road in the horizontal competitors versus single entity characterisations of professional sports leagues.

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Bibliographic Info

Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 111 (2001)
Issue (Month): 469 (February)
Pages: F27-46

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Handle: RePEc:ecj:econjl:v:111:y:2001:i:469:p:f27-46

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Cited by:
  1. Martin Grossmann & Markus Lang & Philipp Theiler, 2010. "The Sugar Daddy's Game: How Wealthy Investors Change Competition in Professional Team Sports," Working Papers 0037, University of Zurich, Center for Research in Sports Administration (CRSA), revised Oct 2010.
  2. Dietl Helmut M & Duschl Tobias & Lang Markus, 2011. "Executive Pay Regulation: What Regulators, Shareholders, and Managers Can Learn from Major Sports Leagues," Business and Politics, De Gruyter, vol. 13(2), pages 1-32, August.
  3. Pelnar, Gregory, 2007. "Antitrust Analysis of Sports Leagues," MPRA Paper 5382, University Library of Munich, Germany.
  4. Helmut Dietl & Tobias Duschl & Markus Lang, 2010. "Gehaltsobergrenzen und Luxussteuern: Erkenntnisse aus dem professionellen Mannschaftssport," Working Papers 0039, University of Zurich, Center for Research in Sports Administration (CRSA).
  5. Daniel, Rascher & Andrew, Schwarz, 2010. "Illustrations of Price Discrimination in Baseball," MPRA Paper 25807, University Library of Munich, Germany.
  6. Palomino, Frederic & Sakovics, Jozsef, 2004. "Inter-league competition for talent vs. competitive balance," International Journal of Industrial Organization, Elsevier, vol. 22(6), pages 783-797, June.
  7. Gary Koop, 2004. "Modeling the Evolution of Distributions: An Application to Major League Baseball," ESE Discussion Papers 71, Edinburgh School of Economics, University of Edinburgh.

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