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

Author

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  • Gürtler Oliver

    (University of Bonn,Bonn, Germany)

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.

Suggested Citation

  • Gürtler Oliver, 2007. "A Rationale for the Coexistence of Central and Decentral Marketing in Team Sports," German Economic Review, De Gruyter, vol. 8(1), pages 89-106, February.
    • Handle: RePEc:bpj:germec:v:8:y:2007:i:1:p:89-106
    DOI: 10.1111/j.1468-0475.2007.00135.x
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    Citations

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    Cited by:

    1. Oliver Budzinski & Anika Müller‐Kock, 2018. "Is The Revenue Allocation Scheme Of Formula One Motor Racing A Case For European Competition Policy?," Contemporary Economic Policy, Western Economic Association International, vol. 36(1), pages 215-233, January.
    2. Matthias Kräkel, 2006. "Zur Reform der Professorenbesoldung in Deutschland," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(1), pages 105-126, February.
    3. Budzinski, Oliver, 2017. "Four cases in sports competition policy: Baseball, judo, football, and motor racing," Ilmenau Economics Discussion Papers 109, Ilmenau University of Technology, Institute of Economics.
    4. Budzinski, Oliver & Müller-Kock, Anika, 2016. "Market power and media revenue allocation in professonal sports: The case of formula one," Ilmenau Economics Discussion Papers 102, Ilmenau University of Technology, Institute of Economics.
    5. Pelnar, Gregory, 2007. "Antitrust Analysis of Sports Leagues," MPRA Paper 5382, University Library of Munich, Germany.
    6. Gurtler, Oliver, 2008. "On sabotage in collective tournaments," Journal of Mathematical Economics, Elsevier, vol. 44(3-4), pages 383-393, February.
    7. Runkel Marco, 2011. "Revenue Sharing, Competitive Balance and the Contest Success Function," German Economic Review, De Gruyter, vol. 12(3), pages 256-273, August.
    8. Budzinski, Oliver & Gänßle, Sophia & Kunz-Kaltenhäuser, Philipp, 2019. "How does online streaming affect antitrust remedies to centralized marketing? The case of European football broadcasting rights," Ilmenau Economics Discussion Papers 128, Ilmenau University of Technology, Institute of Economics.
    9. Budzinski, Oliver, 2017. "Market-internal financial regulation in sports as an anticompetitive institution," Ilmenau Economics Discussion Papers 110, Ilmenau University of Technology, Institute of Economics.
    10. Budzinski, Oliver & Feddersen, Arne, 2022. "Should organizing premier-level European football be a monopoly? And who should run it? - An economists' perspective," Ilmenau Economics Discussion Papers 166, Ilmenau University of Technology, Institute of Economics.
    11. Bernd Frick & Oliver Gürtler & Joachim Prinz, 2008. "Anreize in Turnieren mit heterogenen Teilnehmern — Eine empirische Untersuchung mit Daten aus der Fußball-Bundesliga," Schmalenbach Journal of Business Research, Springer, vol. 60(4), pages 385-405, June.
    12. 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.
    13. Budzinski, Oliver & Feddersen, Arne & Kunz-Kaltenhäuser, Philipp, 2023. "Zwischen Wettbewerbsorganisation und Wettbewerbsverzerrungen - Regelsetzungen durch europäische Fußballverbände," Ilmenau Economics Discussion Papers 174, Ilmenau University of Technology, Institute of Economics.
    14. Budzinski, Oliver, 2024. "Financial regulation in sport championships as an anticompetitive institution," Ilmenau Economics Discussion Papers 187, Ilmenau University of Technology, Institute of Economics.

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    Keywords

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    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics
    • L8 - Industrial Organization - - Industry Studies: Services
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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