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Competitive balance and gate revenue sharing in team sports

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  • Stefan Szymanski
  • Stefan Késenne

Abstract

This paper shows that under reasonable conditions, increasing gate revenue sharing among teams in a sports league will produce a more uneven contest, i.e. reduce competitive balance. This result has significant implications for antitrust authorities and legislators, who have tended to assume that revenue sharing arrangements will necessarily promote competitive balance.

Suggested Citation

  • Stefan Szymanski & Stefan Késenne, 2004. "Competitive balance and gate revenue sharing in team sports," Journal of Industrial Economics, Wiley Blackwell, vol. 52(1), pages 165-177, March.
    • Handle: RePEc:bla:jindec:v:52:y:2004:i:1:p:165-177
    DOI: 10.1111/j.0022-1821.2004.00220.x
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    More about this item

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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