Some comparative economics of the organization of sports: competition and regulation in north American vs. European professional team sports leagues
AbstractThis article contends that a new research avenue is open to comparative economics which is the economic comparison between American (closed) and European (open) professional team sports leagues. It starts with sketching the major institutional differences between the two leagues systems. Then it surveys the American modelling of competitive balance in these sports leagues that objects pro-competitive balance regulation as being non Walrasian when (American) teams are profit maximising. A next step is to cover how the Walrasian model has been adapted to European open leagues and their regulation of win maximising clubs under a hard budget constraint. Such approach has recently been outdated by models where win maximising clubs operate with a flexible supply of talent in a non cooperative game, given the globalization of the labour market for sporting talent (namely after the Bosman case). Finally, the article ploughs into a new research path advocating for a disequilibrium model where clubs would have a "soft" budget constraint rooted in their weak governance, and empirically tests a vicious circle between TV rights revenues and wages in French football that may explain the aforementioned disequilibrium.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Cattaneo University (LIUC) in its journal The European Journal of Comparative Economics.
Volume (Year): 8 (2011)
Issue (Month): 1 (June)
Contact details of provider:
Postal: Corso Matteotti 22 - Castellanza (VA) 21053
Phone: +39 (0)331-572 1
Fax: +39 (0)331-572 320
Web page: http://eaces.liuc.it/default.asp
More information through EDIRC
sports economics; comparative economics; economic organisation; governance; sports leagues; Walrasian model; Nash equilibrium; competitive balance; regulation; soft budget constraint; TV rights; wages; profit maximising; win maximising;
Find related papers by JEL classification:
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
- L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
- J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- G30 - Financial Economics - - Corporate Finance and Governance - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stefan Kesenne, 2000.
"Revenue Sharing and Competitive Balance in Professional Team Sports,"
Journal of Sports Economics,
, vol. 1(1), pages 56-65, February.
- Késenne S., 1999. "Revenue sharing and competitive balance in professional team sports," Working Papers 1999019, University of Antwerp, Faculty of Applied Economics.
- Michel Aglietta & Wladimir Andreff & Bastien Drut, 2008.
"Bourse et Football,"
0820, International Association of Sports Economists & North American Association of Sports Economists.
- Sylos Labini,Paolo, 2001. "Underdevelopment," Cambridge Books, Cambridge University Press, number 9780521588690.
- Edward Glaeser & Simon Johnson & Andrei Shleifer, 2001. "Coase Versus The Coasians," The Quarterly Journal of Economics, MIT Press, vol. 116(3), pages 853-899, August.
- repec:ner:carlos:info:hdl:10016/5036 is not listed on IDEAS
- Wladimir Andreff & Paul D. Staudohar, 2000. "The Evolving European Model of Professional Sports Finance," Journal of Sports Economics, , vol. 1(3), pages 257-276, August.
- Sloane, Peter J, 1971. "The Economics of Professional Football: The Football Club as a Utility Maximiser," Scottish Journal of Political Economy, Scottish Economic Society, vol. 18(2), pages 121-46, June.
- Egon Franck, 2013. "Financial Fair Play in European Club Football – What is it all about?," Working Papers 328, University of Zurich, Department of Business Administration (IBW).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Piero Cavaleri).
If references are entirely missing, you can add them using this form.