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A Rationale for the Coexistence of Central and Decentral Marketing in Team Sports

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  • Oliver Gürtler

Abstract

In some sports leagues, the sports association sells broadcasting rights centrally in order to create competitive balance. In other ones, the market is decentral. As a result, there is competitive imbalance. In this paper, the preferred kind of marketing of sports associations is analysed. Distinctions are made between three cases. In case one, the sports association is only interested in competitive balance. In the second case, it wishes to create a single high-performing team, and in the third, it maximizes aggregate performance. It is found that, depending on the preferences of the association, both kinds of marketing can be optimal. Copyright Verein für Socialpolitik and Blackwell Publishing Ltd. 2007.

Suggested Citation

  • Oliver Gürtler, 2007. "A Rationale for the Coexistence of Central and Decentral Marketing in Team Sports," German Economic Review, Verein für Socialpolitik, vol. 8, pages 89-106, February.
  • Handle: RePEc:bla:germec:v:8:y:2007:i::p:89-106
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    References listed on IDEAS

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    1. Huck, Steffen & Konrad, Kai A. & Muller, Wieland, 2001. "Divisionalization in contests," Economics Letters, Elsevier, vol. 70(1), pages 89-93, January.
    2. Sonia Falconieri & Frederic Palomino & Jozsef Sakovics, 2002. "Collective vs. Individual Sale of TV Rights in League Sports," ESE Discussion Papers 85, Edinburgh School of Economics, University of Edinburgh.
    3. Gradstein, Mark & Konrad, Kai A, 1999. "Orchestrating Rent Seeking Contests," Economic Journal, Royal Economic Society, vol. 109(458), pages 536-545, October.
    4. Helmut Dietl & Egon Franck & Patrick, 2003. "Überinvestitionsprobleme in einer Sportliga," Working Papers 0020, University of Zurich, Institute for Strategy and Business Economics (ISU).
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    Cited by:

    1. Markus LANG & Alexander RATHKE & Marco RUNKEL, 2010. "The Economic Consequences Of Foreigner Rules In National Sports Leagues," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 31, pages 47-64.
    2. 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.
    3. Gurtler, Oliver, 2008. "On sabotage in collective tournaments," Journal of Mathematical Economics, Elsevier, vol. 44(3-4), pages 383-393, February.
    4. Helmut Dietl & Egon Franck & Martin Grossmann & Markus Lang, 2009. "Contest Theory and its Applications in Sports," Working Papers 0029, University of Zurich, Center for Research in Sports Administration (CRSA).

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