Advanced Search
MyIDEAS: Login

Antitrust Analysis of Sports Leagues

Contents:

Author Info

  • Pelnar, Gregory

Abstract

I present an overview of the antitrust literature on sports leagues, with particular emphasis on the National Collegiate Athletic Association, the National Football League, Major League Baseball, the National Basketball Association, and the National Hockey League, as well as on sanctioning organizations such as NASCAR. I review the major antitrust court decisions, the commentaries of the leading antitrust experts on these decisions, and the extensive sports economics literature touching on issues raised in these cases, particularly empirical studies assessing the anticompetitive and procompetitive effects of various league rules and policies. I also review the broader industrial organization literature on issues such as factors affecting the stability of joint ventures. I conclude with a summary of proposals for addressing the monopoly power of sports leagues.

Download Info

If 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.
File URL: http://mpra.ub.uni-muenchen.de/5382/
File Function: original version
Download Restriction: no

Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 5382.

as in new window
Length:
Date of creation: 12 Oct 2007
Date of revision:
Handle: RePEc:pra:mprapa:5382

Contact details of provider:
Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC

Related research

Keywords: antitrust; sports leagues;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Acemoglu, Daron & Pischke, Jorn-Steffen, 1999. "Beyond Becker: Training in Imperfect Labour Markets," Economic Journal, Royal Economic Society, vol. 109(453), pages F112-42, February.
  2. Acemoglu, Daron & Pischke, Jörn-Steffen, 1998. "The Structure of Wages and Investment in General Training," CEPR Discussion Papers 1833, C.E.P.R. Discussion Papers.
  3. Scully, Gerald W., 1995. "The Market Structure of Sports," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226743950, June.
  4. Alessandra Tonazzi, 2003. "Competition policy and the commercialization of sport broadcasting rights: The decision of the Italian Competition Authority," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 10(1), pages 17-34.
  5. Flynn, Michael A & Gilbert, Richard J, 2001. "The Analysis of Professional Sports Leagues as Joint Ventures," Economic Journal, Royal Economic Society, vol. 111(469), pages F27-46, February.
  6. E. Woodrow Eckard, 2001. "The Origin of the Reserve Clause: Owner Collusion versus 'Public Interest'," Journal of Sports Economics, , vol. 2(2), pages 113-130, May.
  7. Baimbridge, Mark & Cameron, Samuel & Dawson, Peter, 1996. "Satellite Television and the Demand for Football: A Whole New Ball Game?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 43(3), pages 317-33, August.
  8. Scully, Gerald W, 1974. "Pay and Performance in Major League Baseball," American Economic Review, American Economic Association, vol. 64(6), pages 915-30, December.
  9. Mark Gius & Donn Johnson, 1998. "An empirical investigation of wage discrimination in professional basketball," Applied Economics Letters, Taylor & Francis Journals, vol. 5(11), pages 703-705.
  10. Stefan Szymanski & Ron Smith, 1997. "The English Football Industry: profit, performance and industrial structure," International Review of Applied Economics, Taylor & Francis Journals, vol. 11(1), pages 135-153.
  11. Roger G. Noll, 2007. "Broadcasting and Team Sports," Discussion Papers 06-016, Stanford Institute for Economic Policy Research.
  12. Pacey, Patricia L & Wickham, Elizabeth D, 1985. "College Football Telecasts: Where Are They Going?," Economic Inquiry, Western Economic Association International, vol. 23(1), pages 93-113, January.
  13. Craig A. Depken II, 1996. "Free-Agency and the Competitiveness of Major-League Baseball," Industrial Organization 9610001, EconWPA, revised 31 Oct 1996.
  14. Stefan Kesenne, 2000. "Revenue Sharing and Competitive Balance in Professional Team Sports," Journal of Sports Economics, , vol. 1(1), pages 56-65, February.
  15. Martin Schmidt, 2001. "Competition in Major League Baseball: the impact expansion," Applied Economics Letters, Taylor & Francis Journals, vol. 8(1), pages 21-26.
  16. Stephen F. Ross, 2003. "Competition Law as a Constraint on Monopolistic Exploitation by Sports Leagues and Clubs," Oxford Review of Economic Policy, Oxford University Press, vol. 19(4), pages 569-584, Winter.
  17. Késenne Stefan & Szymanski S., 2003. "Competitive balance and gate revenue sharing in team sports," Working Papers 2003003, University of Antwerp, Faculty of Applied Economics.
  18. Scott E. Atkinson & Linda R. Stanley & John Tschirhart, 1988. "Revenue Sharing as an Incentive in an Agency Problem: An example from the National Football League," RAND Journal of Economics, The RAND Corporation, vol. 19(1), pages 27-43, Spring.
  19. Dennis W. Carlton & Alan S. Frankel & Elisabeth M. Landes, 2004. "The Control of Externalities in Sports Leagues: An Analysis of Restrictions in the National Hockey League," Journal of Political Economy, University of Chicago Press, vol. 112(S1), pages S268-S288, February.
  20. Joshua Utt & Rodney Fort, 2002. "Pitfalls to Measuring Competitive Balance With Gini Coefficients," Journal of Sports Economics, , vol. 3(4), pages 367-373, November.
  21. Telser, L G, 1995. "The Ultimatum Game and the Law of Demand," Economic Journal, Royal Economic Society, vol. 105(433), pages 1519-23, November.
  22. Paul M. Sommers & Noel Quinton, 1982. "Pay and Performance in Major League Baseball: The Case of the First Family of Free Agents," Journal of Human Resources, University of Wisconsin Press, vol. 17(3), pages 426-436.
  23. J. Jones & S. Nadeau & W. Walsh, 1997. "The wages of sin: Employment and salary effects of violence in the national hockey league," Atlantic Economic Journal, International Atlantic Economic Society, vol. 25(2), pages 191-206, June.
  24. Kogut, Bruce, 1989. "The Stability of Joint Ventures: Reciprocity and Competitive Rivalry," Journal of Industrial Economics, Wiley Blackwell, vol. 38(2), pages 183-98, December.
  25. Donald Cymrot & James Dunlevy & William Even, 2001. "'Who's on first': an empirical test of the Coase Theorem in baseball," Applied Economics, Taylor & Francis Journals, vol. 33(5), pages 593-603.
  26. Palomino, F.A. & Rigotti, L., 2000. "The Sport League's Dilemma: Competitive Balance versus Incentives to Win," Discussion Paper 2000-109, Tilburg University, Center for Economic Research.
  27. Frederic Palomino & Jozsef Sakovics, 2004. "Inter-league competition for talent vs. competitive balance," ESE Discussion Papers 96, Edinburgh School of Economics, University of Edinburgh.
  28. Lawrence M. Kahn, 1992. "The effects of race on professional football players' compensation," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 45(2), pages 295-310, January.
  29. Craig A. Depken, II, 2002. "Free Agency and the Concentration of Player Talent in Major League Baseball," Journal of Sports Economics, , vol. 3(4), pages 335-353, November.
  30. Daniel Sutter & Stephen Winkler, 2003. "NCAA Scholarship Limits and Competitive Balance in College Football," Journal of Sports Economics, , vol. 4(1), pages 3-18, February.
  31. Cave, Martin & Crandall, Robert W, 2001. "Sports Rights and the Broadcast Industry," Economic Journal, Royal Economic Society, vol. 111(469), pages F4-26, February.
  32. Donald G. Ferguson & J. C. H. Jones & Kenneth G. Stewart, 2000. "Competition Within A Cartel: League Conduct And Team Conduct In The Market For Baseball Player Services," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 422-430, August.
  33. Oliver Gürtler, 2005. "A rationale for the coexistence of central and decentral marketing in team sports," Bonn Econ Discussion Papers bgse4_2005, University of Bonn, Germany.
  34. Dennis Coates & Brad R. Humphreys, 2001. "The Economic Consequences of Professional Sports Strikes and Lockouts," Southern Economic Journal, Southern Economic Association, vol. 67(3), pages 737-747, January.
  35. Kahn, Lawrence M, 1993. "Free Agency, Long-Term Contracts and Compensation in Major League Baseball: Estimates from Panel Data," The Review of Economics and Statistics, MIT Press, vol. 75(1), pages 157-64, February.
  36. E. Woodrow Eckard, 2003. "The Anova-Based Competitive Balance Measure: A Defense," Journal of Sports Economics, , vol. 4(1), pages 74-80, February.
  37. Phillip A. Miller, 2000. "A Theoretical and Empirical Comparison of Free Agent and Arbitration-Eligible Salaries Negotiated in Major League Baseball," Southern Economic Journal, Southern Economic Association, vol. 67(1), pages 87-104, July.
  38. Kahn, Lawrence M & Sherer, Peter D, 1988. "Racial Differences in Professional Basketball Players' Compensation," Journal of Labor Economics, University of Chicago Press, vol. 6(1), pages 40-61, January.
  39. Fleisher, Arthur III & Shughart, William II & Tollison, Robert D. & Goff, Brian L., 1988. "Crime or punishment? : Enforcement of the NCAA football cartel," Journal of Economic Behavior & Organization, Elsevier, vol. 10(4), pages 433-451, December.
  40. Andrew S. Zimbalist, 2002. "Competitive Balance in Sports Leagues: An Introduction," Journal of Sports Economics, , vol. 3(2), pages 111-121, May.
  41. Craig A. Depken II & Dennis P. Wilson, 2006. "NCAA Enforcement and Competitive Balance in College Football," Southern Economic Journal, Southern Economic Association, vol. 72(4), pages 826–845, April.
  42. Sonia Falconieri & Frédéric Palomino & József Sákovics, 2004. "Collective Versus Individual Sale of Television Rights in League Sports," Journal of the European Economic Association, MIT Press, vol. 2(5), pages 833-862, 09.
  43. Brown, Gregory W. & Hartzell, Jay C., 2001. "Market reaction to public information: The atypical case of the Boston Celtics," Journal of Financial Economics, Elsevier, vol. 60(2-3), pages 333-370, May.
  44. Dennis Coates & Brad R. Humphreys, 1999. "The growth effects of sport franchises, stadia, and arenas," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(4), pages 601-624.
  45. Lawrence M. Kahn, 2000. "The Sports Business as a Labor Market Laboratory," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 75-94, Summer.
  46. Mark Baimbridge & Samuel Cameron & Peter Dawson, 1995. "Satellite broadcasting and match attendance: the case of rugby league," Applied Economics Letters, Taylor & Francis Journals, vol. 2(10), pages 343-346.
  47. Margaret C. Levenstein & Valerie Y. Suslow, 2002. "What Determines Cartel Success?," UMASS Amherst Economics Working Papers 2002-01, University of Massachusetts Amherst, Department of Economics.
  48. John J. Siegfried & Andrew Zimbalist, 2000. "The Economics of Sports Facilities and Their Communities," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 95-114, Summer.
  49. Vrooman, John, 2000. "The Economics of American Sports Leagues," Scottish Journal of Political Economy, Scottish Economic Society, vol. 47(4), pages 364-98, September.
  50. E. Eckard, 1998. "The NCAA Cartel and Competitive Balance in College Football," Review of Industrial Organization, Springer, vol. 13(3), pages 347-369, June.
  51. Angelo Cocco & J. C. H. Jones, 1997. "On going south: the economics of survival and relocation of small market NHL franchises in Canada," Applied Economics, Taylor & Francis Journals, vol. 29(11), pages 1537-1552.
  52. Michael A. Leeds & Sandra Kowalewski, 2001. "Winner Take All in the NFL: The Effect of the Salary Cap and Free Agency on the Compensation of Skill Position Players," Journal of Sports Economics, , vol. 2(3), pages 244-256, August.
  53. Daniel R. Marburger, 1997. "Gate Revenue Sharing And Luxury Taxes In Professional Sports," Contemporary Economic Policy, Western Economic Association International, vol. 15(2), pages 114-123, 04.
  54. Stefan Szymanski, 2006. "Tilting the Playing Field: Why a sports league planner would choose less, not more, competitive balance," Working Papers 0620, International Association of Sports Economists & North American Association of Sports Economists.
  55. Rodney Fort & Joel Maxcy, 2001. "The Demise of African American Baseball Leagues: A Rival League Explanation," Journal of Sports Economics, , vol. 2(1), pages 35-49, February.
  56. David Forrest & Rob Simmons & Stefan Szymanski, 2004. "Broadcasting, Attendance and the Inefficiency of Cartels," Review of Industrial Organization, Springer, vol. 24(3), pages 243-265, 05.
  57. Allen R. Sanderson & John J. Siegfried, 2003. "Thinking About Competitive Balance," Vanderbilt University Department of Economics Working Papers 0318, Vanderbilt University Department of Economics.
  58. Pablo Casas-Arce, 2004. "Firm Provision of General Training and Specific Human Capital Acquisition," Economics Series Working Papers 198, University of Oxford, Department of Economics.
  59. John J. Siegfried & Molly Gardner Burba, 2003. "The College Football Association Television Broadcase Cartel," Vanderbilt University Department of Economics Working Papers 0320, Vanderbilt University Department of Economics.
  60. Stefan Szymanski & Tommaso M. Valletti, 2005. "Promotion and Relegation in Sporting Contests," Rivista di Politica Economica, SIPI Spa, vol. 95(3), pages 3-39, May-June.
  61. William Putsis & Subrata Sen, 2000. "Should NFL blackouts be banned?," Applied Economics, Taylor & Francis Journals, vol. 32(12), pages 1495-1507.
  62. Roger Noll, 2002. "The Economics of Promotion and Relegation in Sports Leagues: The Cases of English Football," Journal of Sports Economics, , vol. 3(2), pages 169-203, May.
  63. Jones, J C H & Ferguson, D G, 1988. "Location and Survival in the National Hockey League," Journal of Industrial Economics, Wiley Blackwell, vol. 36(4), pages 443-57, June.
  64. AC. Krautmann & E. Gustafson & L. Hadley, 2000. "Who pays for minor league training costs?," Contemporary Economic Policy, Western Economic Association International, vol. 18(1), pages 37-47, 01.
  65. Kanazawa, Mark T & Funk, Jonas P, 2001. "Racial Discrimination in Professional Basketball: Evidence from Nielsen Ratings," Economic Inquiry, Western Economic Association International, vol. 39(4), pages 599-608, October.
  66. Hausman, Jerry A & Leonard, Gregory K, 1997. "Superstars in the National Basketball Association: Economic Value and Policy," Journal of Labor Economics, University of Chicago Press, vol. 15(4), pages 586-624, October.
  67. Grier, Kevin B. & Tollison, Robert D., 1994. "The rookie draft and competitive balance: The case of professional football," Journal of Economic Behavior & Organization, Elsevier, vol. 25(2), pages 293-298, October.
  68. J. Richard Hill & Peter A. Groothuis, 2001. "The New NBA Collective Bargaining Agreement, the Median Voter Model, and a Robin Hood Rent Redistribution," Journal of Sports Economics, , vol. 2(2), pages 131-144, May.
  69. Jordan Rappaport & Chad Wilkerson, 2001. "What are the benefits of hosting a major league sports franchise?," Economic Review, Federal Reserve Bank of Kansas City, issue Q I, pages 55-86.
  70. Thomas J. Miceli, 2003. "A Principal-Agent Model of Contracting in Major League Baseball," Working papers 2003-01, University of Connecticut, Department of Economics.
  71. Brown, Robert W, 1993. "An Estimate of the Rent Generated by a Premium College Football Player," Economic Inquiry, Western Economic Association International, vol. 31(4), pages 671-84, October.
  72. Brad R. Humphreys, 2003. "The Anova-Based Competitive Balance Measure: A Reply," Journal of Sports Economics, , vol. 4(1), pages 81-82, February.
  73. Roger G. Noll, 2003. "The Organization of Sports Leagues," Oxford Review of Economic Policy, Oxford University Press, vol. 19(4), pages 530-551, Winter.
  74. Drahozal, Christopher R., 1986. "The impact of free agency on the distribution of playing talent in major league baseball," Journal of Economics and Business, Elsevier, vol. 38(2), pages 113-121, May.
  75. Gerald W. Scully, 2004. "Player salary share and the distribution of player earnings," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(2), pages 77-86.
  76. White, Michael D, 1986. "Self-interest Redistribution and the National Football League Players Association," Economic Inquiry, Western Economic Association International, vol. 24(4), pages 669-80, October.
  77. Allen R. Sanderson, 2002. "The Many Dimensions of Competitive Balance," Journal of Sports Economics, , vol. 3(2), pages 204-228, May.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Pelnar, Gregory, 2009. "Competition and Cooperation between Professional Sports Franchises: The Impact on Ticket Prices," MPRA Paper 17787, University Library of Munich, Germany.
  2. Oliver Budzinski, 2011. "The Institutional Framework for Doing Sports Business: Principles of EU Competition Policy in Sports Markets," Working Papers 1103, International Association of Sports Economists & North American Association of Sports Economists.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:5382. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.