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Sports Business and Multisided Markets: Towards a New Analytical Framework? (Long Version)

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  • Oliver Budzinski

    ()
    (Markets & Competition Group, Department of Environmental and Business Economics, University of Southern Denmark)

  • Janina Satzer

    ()
    (Markets & Competition Group, Department of Environmental and Business Economics, University of Southern Denmark)

Abstract

Despite still being younger than a decade, the theory of multisided markets has offered numerous valuable insights for the analysis of industries in which a supplier serves two distinct customer groups that are indirectly interrelated by externalities. Examples include payment systems, matching agencies, commercial media, and software platforms. However, professional sports markets have largely been neglected so far in this kind of research although they possess the characteristics of multisided markets. This conceptual paper contributes to filling this gap by describing the platform elements of professional suppliers of sports events and conceptually outlining issues where an application of this theoretical framework is likely to provide valuable insights and to add to the existing knowledge. Among these problems are integrative pricing strategies of sports clubs towards such different customer groups like attendees, broadcasters, sponsors, etc., including their welfare and antitrust implications, design decisions of sports associations in order to promote positive feedback loops among the customer groups as well as management strategies to reinforce positive externalities among customer groups and alleviate negative ones.

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Bibliographic Info

Paper provided by International Association of Sports Economists & North American Association of Sports Economists in its series Working Papers with number 1104.

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Length: 27 pages
Date of creation: Mar 2011
Date of revision:
Handle: RePEc:spe:wpaper:1104

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Keywords: sports economics; sports management; two-sided markets; multisided platforms; professional sports business; pricing strategies; broadcasting rights;

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References

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  2. Dietl, Helmut & Duschl, Tobias, 2012. "The organization of professional sports leagues: A comparison of European and North-American leagues from the perspective of platform organization," Edition HWWI: Chapters, in: Sport und Sportgroßveranstaltungen in Europa - zwischen Zentralstaat und Regionen, pages 111-126 Hamburg Institute of International Economics (HWWI).
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Citations

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Cited by:
  1. Oliver Budzinski, 2011. "The Institutional Framework for Doing Sports Business: Principles of EU Competition Policy in Sports Markets," Working Papers, International Association of Sports Economists;North American Association of Sports Economists 1103, International Association of Sports Economists;North American Association of Sports Economists.
  2. Budzinski, Oliver & Müller, Anika, 2013. "Finanzregulierung und internationale Wettbewerbsfähigkeit: Der Fall Deutsche Bundesliga," Ilmenau Economics Discussion Papers 82, Ilmenau University of Technology, Institute of Economics.

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