Broadcast Rights and Competitive Balance in European Soccer
Monopolization of broadcast rights for collective sales is a widespread practice in sports leagues. Proponents of this system claim that it is a necessary tool for the maintenance of competitive balance (tension) in sports. In this empirical paper, I argue that, in European soccer, collective sales do not increase competitive balance as compared to individual sales. Further, I demonstrate the negative effect of the UEFA Champions League and the beneficial effect of a more equal distribution of drawing power and a larger domestic market size on competitive balance. These results shed new light on antitrust policies towards the sports industry.
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Volume (Year): 6 (2011)
Issue (Month): 1 (February)
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