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Assessing the Efficiency of Local Entities in the Provision of Public Sports Facilities

Author

Listed:
  • Daniel A. Rascher

    () (University of San Francisco)

  • Timothy D. DeSchriver

    () (University of Delaware)

Abstract

In late 2011, at a time when other leagues such as the National Football League and the National Basketball Association had engaged in work stoppages, Major League Baseball owners and the MLB Players Association harmoniously agreed on a new five-year collective bargaining agreement. This article focuses on the reasons why MLB as an industry has maintained labor peace after decades of work stoppages. The primary aspects of the new MLB CBA, such as changes to the revenue sharing system, competitive balance tax, salary arbitration, and the amateur draft are addressed. The manner in which these economic mechanisms affect areas such as competitive balance will be analyzed. Lastly, a comparison was undertaken of the collective bargaining environment in MLB versus other professional sports leagues and other non-sports industries.

Suggested Citation

  • Daniel A. Rascher & Timothy D. DeSchriver, 2012. "Assessing the Efficiency of Local Entities in the Provision of Public Sports Facilities," International Journal of Sport Finance, Fitness Information Technology, vol. 7(2), pages 176-208, May.
  • Handle: RePEc:jsf:intjsf:v:7:y:2012:i:2:p:176-208
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    References listed on IDEAS

    as
    1. Stefan Szymanski, 2003. "The Assessment: The Economics of Sport," Oxford Review of Economic Policy, Oxford University Press, vol. 19(4), pages 467-477, Winter.
    2. Van Calster Ben & Smits Tim & Van Huffel Sabine, 2008. "The Curse of Scoreless Draws in Soccer: The Relationship with a Team's Offensive, Defensive, and Overall Performance," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 4(1), pages 1-24, January.
    3. Peter Macmillan & Ian Smith, 2007. "Explaining International Soccer Rankings," Journal of Sports Economics, , vol. 8(2), pages 202-213, May.
    4. Boscá, José E. & Liern, Vicente & Martínez, Aurelio & Sala, Ramøn, 2009. "Increasing offensive or defensive efficiency? An analysis of Italian and Spanish football," Omega, Elsevier, vol. 37(1), pages 63-78, February.
    5. Robert Houston & Dennis Wilson, 2002. "Income, leisure and proficiency: an economic study of football performance," Applied Economics Letters, Taylor & Francis Journals, vol. 9(14), pages 939-943.
    6. Lawrence M. Kahn, 2000. "The Sports Business as a Labor Market Laboratory," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 75-94, Summer.
    7. Robert Hoffmann & Lee Chew Ging & Bala Ramasamy, 2002. "The Socio-Economic Determinants of International Soccer Performance," Journal of Applied Economics, Universidad del CEMA, vol. 5, pages 253-272, November.
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    More about this item

    Keywords

    Major League Baseball; collective bargaining; revenue sharing; free agency;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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