IDEAS home Printed from https://ideas.repec.org/a/sae/jospec/v3y2002i2p169-203.html
   My bibliography  Save this article

The Economics of Promotion and Relegation in Sports Leagues

Author

Listed:
  • Roger G. Noll

    (Stanford University)

Abstract

In most of the world’s professional sports leagues, the worst teams in better leagues are demoted while the best teams in weaker leagues are promoted. This article examines the economics of promotion and relegation, using data from English football (soccer). The crucial findings are as follows: players earn higher wages under promotion and relegation, promotion and relegation has a net positive effect on attendance, and the effect of promotion and relegation on competitive balance is ambiguous. The unbalancing effect arises because the system places some teams in leagues in which they have no realistic chance to afford a winning team, thereby causing teams to spend less on players during their (brief) stay in a higher league than they spent while trying to be promoted from as lesser league. The article concludes with an analysis of how promotion and relegation might be implemented in North America.

Suggested Citation

  • Roger G. Noll, 2002. "The Economics of Promotion and Relegation in Sports Leagues," Journal of Sports Economics, , vol. 3(2), pages 169-203, May.
  • Handle: RePEc:sae:jospec:v:3:y:2002:i:2:p:169-203
    as

    Download full text from publisher

    File URL: http://jse.sagepub.com/content/3/2/169.abstract
    Download Restriction: no

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jospec:v:3:y:2002:i:2:p:169-203. 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: (SAGE Publications). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.