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Collective Versus Individual Sale of Television Rights in League Sports

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Author Info
Sonia Falconieri (Tilburg University,)
Frédéric Palomino (HEC and CEPR,)
József Sákovics (Edinburgh School of Economics,)

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Abstract

In many countries, the collective sale of television rights by sports leagues has been challenged by the antitrust authorities. In several cases, however, the leagues won in court, on the ground that sport is not a standard good. In this paper, we investigate the conditions under which the sale of television rights collectively by sports leagues, rather than individually by teams, is preferred from a social welfare point of view. We find that collective sale is socially preferable when (a) leagues are small and relatively homogeneous in terms of clout and (b) teams get little performance-related revenues. (JEL: L10, L83) Copyright (c) 2004 by the European Economic Association.

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Publisher Info
Article provided by MIT Press in its journal Journal of the European Economic Association.

Volume (Year): 2 (2004)
Issue (Month): 5 (09)
Pages: 833-862
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Handle: RePEc:tpr:jeurec:v:2:y:2004:i:5:p:833-862

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  2. Matthias Kräkel, 2006. "Doping and Cheating in Contest-Like Situations," IZA Discussion Papers 2059, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Uschi Backes-Gellner & Simone Tuor, 2007. "Avoiding Labor Shortages by Employer Signaling - On the Importance of Good Work Climate and Labor Relations," Working Papers 0067, University of Zurich, Institute for Strategy and Business Economics (ISU). [Downloadable!]
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  5. Paul Madden, 2009. "Modelling strategic interactions in sport leagues," The School of Economics Discussion Paper Series 0909, Economics, The University of Manchester. [Downloadable!]
  6. Helmut Dietl & Egon Franck & Tariq Hasan & Markus Lang, 2006. "Governance of Professional Sports Leagues - Cooperatives versus Contracts," Working Papers 0059, University of Zurich, Institute for Strategy and Business Economics (ISU), revised 2007. [Downloadable!]
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  8. Kesenne S., 2008. "The optimal size of a sports league," Working Papers 2008017, University of Antwerp, Faculty of Applied Economics. [Downloadable!]
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