IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

The Auctioning of TV-Sports Rights

Listed author(s):
  • Harry Arne Solberg


    (Sør-Trøndelag University College)

Registered author(s):

    This article examines the effectiveness of auctions as sale procedures of sports rights. Although recent history contains several examples of auctions that have generated substantial revenues to owners of sports rights, staging an auction is no guarantee of success. The amount that bidders are willing to pay is influenced by a number of factors. Television companies or networks do not control all of the factors that influence their income from sports broadcasting. As a result, risk-aversive companies may choose not to submit bids. Sellers should stage open-bid procedures (preferably English auction) in order to neutralize this effect. Open-bid procedures provide information that can encourage risk aversive companies to bid more aggressively. However, sellers who fear collusion among buyers should stage secret bid auctions. The production and transmission of TV programs is characterized by economies of scale advantages. High entrance costs reduce the number of companies that can afford to enter the market. On the other hand, those few that have the financial resources will strengthen their market power, at the cost of the sellers. This can reduce the level of competition and make it more difficult to uphold values on sports rights. Introducing minimum fees and royalty fees can reduce the problem, but not fully outbalance the negative effect from reduced competition. Thus, sellers of sports rights may have to accept a reversal effect on rights fees if the number of bidders is reduced.

    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.

    File URL:
    Download Restriction: Full-text download requires subscription from FIT.

    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.

    Article provided by Fitness Information Technology in its journal International Journal of Sport Finance.

    Volume (Year): 1 (2006)
    Issue (Month): 1 (February)
    Pages: 33-45

    in new window

    Handle: RePEc:jsf:intjsf:v:1:y:2006:i:1:p:33-45
    Contact details of provider: Web page:

    Order Information: Web:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:jsf:intjsf:v:1:y:2006:i:1:p:33-45. 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: (Victor Matheson)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.