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The Analysis of Professional Sports Leagues as Joint Ventures

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  • Flynn, Michael A
  • Gilbert, Richard J

Abstract

This paper addresses whether the welfare analysis of the agreements and rules of a professional sports league should depend on the organisational form chosen by the league's participants. Courts have analysed sports leagues both as associations of horizontal competitors and as single entities. The former approach suggests much less tolerance for rules that affect competition. Drawing on the distinction between ex ante and ex post competition that has been found useful in the economic analysis of intellectual property rights, the authors suggest a middle road in the horizontal competitors versus single entity characterisations of professional sports leagues.

Suggested Citation

  • Flynn, Michael A & Gilbert, Richard J, 2001. "The Analysis of Professional Sports Leagues as Joint Ventures," Economic Journal, Royal Economic Society, vol. 111(469), pages 27-46, February.
  • Handle: RePEc:ecj:econjl:v:111:y:2001:i:469:p:f27-46
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Markus Lang & Martin Grossmann & Philipp Theiler, 2011. "The Sugar Daddy Game: How Wealthy Investors Change Competition in Professional Team Sports," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 167(4), pages 557-577, December.
    3. Palomino, Frederic & Sakovics, Jozsef, 2004. "Inter-league competition for talent vs. competitive balance," International Journal of Industrial Organization, Elsevier, pages 783-797.
    4. Falconieri, S. & Palomino, F.A. & Sakovics, J., 2002. "Collective vs Individual Sale of TV Rights in League Sports," Discussion Paper 2002-106, Tilburg University, Center for Economic Research.
    5. Gary Koop, 2004. "Modelling the evolution of distributions: an application to Major League baseball," Journal of the Royal Statistical Society Series A, Royal Statistical Society, pages 639-655.
    6. Pelnar, Gregory, 2007. "Antitrust Analysis of Sports Leagues," MPRA Paper 5382, University Library of Munich, Germany.
    7. Helmut Dietl & Tobias Duschl & Markus Lang, 2010. "Gehaltsobergrenzen und Luxussteuern: Erkenntnisse aus dem professionellen Mannschaftssport," Working Papers 0136, University of Zurich, Institute for Strategy and Business Economics (ISU).
    8. Stefan Szymanski & Stephen F. Ross, 2007. "Governance And Vertical Integration In Team Sports," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 616-626, October.
    9. Daniel, Rascher & Andrew, Schwarz, 2010. "Illustrations of Price Discrimination in Baseball," MPRA Paper 25807, University Library of Munich, Germany.
    10. John K. Wilson & Richard Pomfret, 2014. "Public Policy and Professional Sports," Books, Edward Elgar Publishing, number 15381, April.

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