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Structural Change, Competitive Balance, And The Rest Of The Major Leagues

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  • RODNEY FORT
  • YOUNG HOON LEE

Abstract

Analyzing North American major sports leagues other than baseball, we find no break points in competitive balance time series corresponding to rule changes, the draft, free agency, salary caps, or labor disputes except for the 1998 basketball lockout. Some expansion and team relocation correspond with break points. Mergers that do correspond with break points all enhance competitive balance. But not all expansions, moves, and mergers correspond with break points. Remaining explanatory challenges include a general negative trend in competitive balance in basketball and the occurrence of a break point in football, 1976–1977. (JEL C32, L83)

Suggested Citation

  • Rodney Fort & Young Hoon Lee, 2007. "Structural Change, Competitive Balance, And The Rest Of The Major Leagues," Economic Inquiry, Western Economic Association International, vol. 45(3), pages 519-532, July.
    • Handle: RePEc:bla:ecinqu:v:45:y:2007:i:3:p:519-532
    DOI: 10.1111/j.1465-7295.2007.00026.x
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    Cited by:

    1. Dietl Helmut & Duschl Tobias & Franck Egon & Lang Markus, 2012. "A Contest Model of a Professional Sports League with Two-Sided Markets," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(3), pages 336-359, June.
    2. Oliver Gürtler & Markus Lang & Tim Pawlowski, 2015. "On the Release of Players to National Teams," Journal of Sports Economics, , vol. 16(7), pages 695-713, October.
    3. Brian M. Mills & Steven Salaga, 2015. "Historical Time Series Perspectives on Competitive Balance in NCAA Division I Basketball," Journal of Sports Economics, , vol. 16(6), pages 614-646, August.
    4. Dietl Helmut M & Duschl Tobias & Lang Markus, 2011. "Executive Pay Regulation: What Regulators, Shareholders, and Managers Can Learn from Major Sports Leagues," Business and Politics, De Gruyter, vol. 13(2), pages 1-32, August.
    5. Helmut Dietl & Tobias Duschl & Markus Lang, 2010. "Gehaltsobergrenzen und Luxussteuern: Erkenntnisse aus dem professionellen Mannschaftssport," Working Papers 0039, University of Zurich, Center for Research in Sports Administration (CRSA).
    6. Fort, Rodney & Maxcy, Joel & Diehl, Mark, 2016. "Uncertainty by regulation: Rottenberg׳s invariance principle," Research in Economics, Elsevier, vol. 70(3), pages 454-467.
    7. Young Hoon Lee & Rodney Fort, 2012. "Competitive Balance: Time Series Lessons from the E nglish P remier L eague," Scottish Journal of Political Economy, Scottish Economic Society, vol. 59(3), pages 266-282, July.
    8. Helmut M. Dietl & Markus Lang & Alexander Rathke, 2011. "The Combined Effect Of Salary Restrictions And Revenue Sharing In Sports Leagues," Economic Inquiry, Western Economic Association International, vol. 49(2), pages 447-463, April.
    9. Nieswiadomy Michael L. & Strazicich Mark C. & Clayton Stephen, 2012. "Was There a Structural Break in Barry Bonds's Bat?," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 8(3), pages 1-19, October.
    10. Yvan J. Kelly, 2008. "Cost Reduction, Competitive Balance, and the Scheduling of Back-to-Back Games in the NBA," Working Papers 0810, International Association of Sports Economists;North American Association of Sports Economists.
    11. Martin B. Schmidt, 2021. "On the evolution of athlete anthropometric measurements: racial integration, expansion, and steroids," Empirical Economics, Springer, vol. 61(6), pages 3419-3443, December.
    12. Liam J. A. Lenten, 2015. "Measurement of Competitive Balance in Conference and Divisional Tournament Design," Journal of Sports Economics, , vol. 16(1), pages 3-25, January.
    13. Rodney Fort & Young Hoon Lee, 2013. "Major League Baseball attendance time series: league policy lessons," Chapters, in: Plácido Rodríguez & Stefan Késenne & Jaume García (ed.), The Econometrics of Sport, chapter 2, pages 35-50, Edward Elgar Publishing.
    14. Sang Hun Sung & Doo-Seung Hong & Soo Young Sul, 2020. "How We Can Enhance Spectator Attendance for the Sustainable Development of Sport in the Era of Uncertainty: A Re-Examination of Competitive Balance," Sustainability, MDPI, vol. 12(17), pages 1-15, August.
    15. Steven Salaga & Rodney Fort, 2017. "Structural Change in Competitive Balance in Big-Time College Football," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 50(1), pages 27-41, February.
    16. Hojun Sung & Brian M. Mills & Younghoon Lee, 2022. "Moments of Competitive Balance in Major League Soccer," Journal of Sports Economics, , vol. 23(3), pages 329-354, April.
    17. Peter A. Groothuis & Kurt W. Rotthoff & Mark C. Strazicich, 2017. "Structural Breaks in the Game," Journal of Sports Economics, , vol. 18(6), pages 622-637, August.
    18. P. Dorian Owen & Nicholas King, 2015. "Competitive Balance Measures In Sports Leagues: The Effects Of Variation In Season Length," Economic Inquiry, Western Economic Association International, vol. 53(1), pages 731-744, January.
    19. Lee, Travis, 2020. "Competitive Balance in the National Hockey League after Unrestricted Free Agency and the Salary Cap," MPRA Paper 108400, University Library of Munich, Germany.
    20. Hyung Jin Kim & Byoungwook Min, 2019. "Power and Public Space: A Historical Observation of Seoul Plaza," Sustainability, MDPI, vol. 11(5), pages 1-17, March.
    21. Hayley Jang & Young Hoon Lee & Rodney Fort, 2019. "Winning In Professional Team Sports: Historical Moments," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 103-120, January.
    22. Ira Horowitz, 2018. "Competitive Balance in the NBA Playoffs," The American Economist, Sage Publications, vol. 63(2), pages 215-227, October.
    23. Kenneth Linna & Evan Moore & Rodney Paul & Andrew Weinbach, 2014. "The Effects of the Clock and Kickoff Rule Changes on Actual and Market-Based Expected Scoring in NCAA Football," IJFS, MDPI, vol. 2(2), pages 1-14, April.

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    More about this item

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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