Comparing Competitive Balance in Australian Sports Leagues: Does a Salary Cap and Player Draft Measure Up?
In the period following the introduction by the Australian Football League (AFL) of the team salary cap in 1985 and the player draft at the end of 1986, within-season competitive balance (measured by the seasonal distribution of team win percentages) has increased. This paper continues the investigation into whether the improvement in competitive balance in the AFL can be attributed to these labour market changes by examining competitive balance outcomes and labour market changes in two other Australian sports leagues, the National Basketball League (NBL) and the National Rugby League (NRL). The measurement of competitive balance in this paper is extended to include a simple measure of between-season competitive balance, namely the distribution of championships/ premierships amongst teams/clubs. The evidence suggests that since 1985 within-season competitive balance, as measured by actual standard deviation/idealised standard deviation (ASD/ISD) ratios, has increased slightly in all three leagues. The NRL has been the most balanced and the NBL the least balanced, both pre- and post-1985. The distribution of championships/premierships is, in general, also more even in the post-1985 period in all three leagues. The most significant labour market change in both the NBL and the NRL post-1985 is their adoption of a team salary cap. Thus, the evidence on competitive balance is consistent with the view that the introduction of a team salary cap in all three leagues has improved competitive balance since 1985. However, since 1985 there has also been net expansion in the number of clubs/teams in all three leagues, and a considerable turnover in both the NBL and the NRL, but not the AFL. The expansion and contraction of the leagues is compared with changes in their competitive balance, leading to the conclusion that the number and, in particular, the location of teams/clubs also affects competitive balance.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 8 (2005)
Issue (Month): 2 (September)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/716936/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/716936/bibliographic|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- E. Woodrow Eckard, 2001. "Baseballâ€™s Blue Ribbon Economic Report," Journal of Sports Economics, The North American Association of Sports Economists, vol. 2(3), pages 213-227, August.
- Allen R. Sanderson, 2002. "The Many Dimensions of Competitive Balance," Journal of Sports Economics, The North American Association of Sports Economists, vol. 3(2), pages 204-228, May.
- Eckard, E Woodrow, 2001. "Free Agency, Competitive Balance, and Diminishing Returns to Pennant Contention," Economic Inquiry, Western Economic Association International, vol. 39(3), pages 430-43, July.
- Brad R. Humphreys, 2002. "Alternative Measures of Competitive Balance in Sports Leagues," Journal of Sports Economics, The North American Association of Sports Economists, vol. 3(2), pages 133-148, May.
- E. Woodrow Eckard, 2003. "The Anova-Based Competitive Balance Measure: A Defense," Journal of Sports Economics, The North American Association of Sports Economists, vol. 4(1), pages 74-80, February.
- Andrew S. Zimbalist, 2002. "Competitive Balance in Sports Leagues: An Introduction," Journal of Sports Economics, The North American Association of Sports Economists, vol. 3(2), pages 111-121, May.
- E. Eckard, 1998. "The NCAA Cartel and Competitive Balance in College Football," Review of Industrial Organization, Springer, vol. 13(3), pages 347-369, June.
- Brad R. Humphreys, 2003. "The Anova-Based Competitive Balance Measure," Journal of Sports Economics, The North American Association of Sports Economists, vol. 4(1), pages 81-82, February.
- Joshua Utt & Rodney Fort, 2002. "Pitfalls to Measuring Competitive Balance With Gini Coefficients," Journal of Sports Economics, The North American Association of Sports Economists, vol. 3(4), pages 367-373, November.
- Ross Booth, 2004. "The Economics Of Achieving Competitive Balance In The Australian Football League, 1897–2004," Economic Papers, The Economic Society of Australia, vol. 23(4), pages 325-344, December.
When requesting a correction, please mention this item's handle: RePEc:eee:spomar:v:8:y:2005:i:2:p:119-143. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.