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The Organization of Sports Leagues

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  • Roger G. Noll

Abstract

Sports leagues have been organized in many different ways. This essay examines the incentive structure and efficiency of different forms of league organization, including the methods for scheduling games, admitting new members, and making operational decisions. The article also compares operations and outcomes in Europe and North America, and concludes that the European system of promotions and relegation is superior to the closed structure of American leagues, and that the American system of multiple parallel leagues to determine qualifications and seeding in a post-season tournament is efficiency enhancing. The article also discusses the optimal size and number of leagues, and concludes that both the European and American systems produce too few major-league teams, largely because they have permitted major leagues to be monopolies. Copyright 2003, Oxford University Press.

Suggested Citation

  • Roger G. Noll, 2003. "The Organization of Sports Leagues," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 19(4), pages 530-551, Winter.
    • Handle: RePEc:oup:oxford:v:19:y:2003:i:4:p:530-551
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    References listed on IDEAS

    as
    1. Roger G. Noll, 2003. "The Economics of Baseball Contraction," Journal of Sports Economics, , vol. 4(4), pages 367-388, November.
    2. Thomas Hoehn & Stefan Szymanski, 2010. "The Americanization of European football," Palgrave Macmillan Books, in: Football Economics and Policy, chapter 3, pages 52-96, Palgrave Macmillan.
    3. Roger G. Noll, 2002. "The Economics of Promotion and Relegation in Sports Leagues," Journal of Sports Economics, , vol. 3(2), pages 169-203, May.
    4. Stefan Szymanski, 2010. "The Economic Design of Sporting Contests," Palgrave Macmillan Books, in: The Comparative Economics of Sport, chapter 1, pages 1-78, Palgrave Macmillan.
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