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The Economic Consequences of Foreigner Rules in National Sports Leagues

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Author Info
Markus Lang () (Institute for Strategy and Business Economics, University of Zurich)
Alexander Rathke () (Institute for Empirical Research in Economics, University of Zurich)
Marco Runkel () (Faculty of Economics and Management, University of Magdeburg)

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Abstract

This paper provides a contest model of a professional team sports league and analyzes the impact of a restriction on foreign players. It shows that a league with binding restrictions on foreign talent for all clubs is more balanced than a league without binding restrictions on foreign talent. Moreover, the wage level of domestic (foreign) talent is higher (lower) in a league with a binding restriction on foreign players. Finally, a tighter restriction on foreign players increases profits of all clubs.

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Publisher Info
Paper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Working Papers with number 0103.

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Length: 16 pages
Date of creation: Apr 2009
Date of revision: Jul 2009
Handle: RePEc:iso:wpaper:0103

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Related research
Keywords: Team Sports Leagues; UEFA's Homegrown Rule; FIFA's 6+5 Rule; Competitive Balance; Player Salaries;

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Find related papers by JEL classification:
L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism

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    Other versions:
  2. Stefan Szymanski, 2002. "The Economic Impact of the World Cup," World Economics, World Economics, Economic & Financial Publishing, PO Box 69, Henley-on-Thames, Oxfordshire, United Kingdom, RG9 1GB, vol. 3(1), pages 169-177, January. [Downloadable!]
  3. Helmut M. Dietl & Markus Lang, 2008. "The Effect Of Gate Revenue Sharing On Social Welfare," Contemporary Economic Policy, Western Economic Association International, vol. 26(3), pages 448-459, 07. [Downloadable!] (restricted)
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  4. Stefan Szymanski, 2003. "The Economic Design of Sporting Contests," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1137-1187, December.
  5. Peter Antonioni & John Cubbin, 2000. "The Bosman Ruling and the Emergence of a Single Market in Soccer Talent," European Journal of Law and Economics, Springer, vol. 9(2), pages 157-173, March. [Downloadable!] (restricted)
  6. Steffen Rätzel & Joachim Weimann, 2006. "Der Maradona Effekt: Wie viel Wohlfahrt schafft die deutsche Nationalmannschaft?," Perspektiven der Wirtschaftspolitik, Blackwell Publishing, vol. 7(2), pages 257-270, 05. [Downloadable!] (restricted)
  7. repec:bep:eaptop:v:9:y:2009:i:1:p:2034-2034 is not listed on IDEAS
  8. Helmut Dietl & Markus Lang & Stephan Werner, 2008. "Social Welfare in Sports Leagues with Profit-Maximizing and/or Win-Maximizing Clubs," Working Papers 0090, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Jul 2009. [Downloadable!]
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  9. Dixit, Avinash K, 1987. "Strategic Behavior in Contests," American Economic Review, American Economic Association, vol. 77(5), pages 891-98, December. [Downloadable!] (restricted)
  10. Skaperdas, Stergios, 1996. "Contest Success Functions," Economic Theory, Springer, vol. 7(2), pages 283-90, February.
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  11. Vrooman, John, 2000. "The Economics of American Sports Leagues," Scottish Journal of Political Economy, Scottish Economic Society, vol. 47(4), pages 364-98, September. [Downloadable!] (restricted)
  12. John Vrooman, 2007. "Theory Of The Beautiful Game: The Unification Of European Football," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(3), pages 314-354, 07. [Downloadable!] (restricted)
  13. Stefan Szymanski & Stefan KÈsenne, 2004. "Competitive balance and gate revenue sharing in team sports," Journal of Industrial Economics, Blackwell Publishing, vol. 52(1), pages 165-177, 03. [Downloadable!] (restricted)
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  14. Feess, Eberhard & Muehlheusser, Gerd, 2003. "Transfer fee regulations in European football," European Economic Review, Elsevier, vol. 47(4), pages 645-668, August. [Downloadable!] (restricted)
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  16. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2006. "Seemingly Irrelevant Events Affect Economic Perceptions and Expectations: The FIFA World Cup 2006 as a Natural Experiment," IZA Discussion Papers 2275, Institute for the Study of Labor (IZA). [Downloadable!]
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