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The Economics of Professional Sports Leagues

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  • Spiros Bougheas
  • Paul Downward

Abstract

Over the years, sporting leagues around the world have implemented a number of cross-subsidization policies aiming to preserve their competitive balance. The main target of these policies has been the sporting labor market. Some of these policies aim to directly affect players' salaries, whereas others attempt to reform the transfer market. In this article, after a brief review of cross-subsidization policies, the authors develop a simple model of the transfer market where players' salaries are determined by a bargaining process. Within this framework, the authors reexamine the effect of such policies for competitive balance, taking explicitly into account their effects on transactions in the transfer market.

Suggested Citation

  • Spiros Bougheas & Paul Downward, 2003. "The Economics of Professional Sports Leagues," Journal of Sports Economics, , vol. 4(2), pages 87-107, May.
  • Handle: RePEc:sae:jospec:v:4:y:2003:i:2:p:87-107
    DOI: 10.1177/1527002503004002001
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    References listed on IDEAS

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    Cited by:

    1. T. Dejonghe & W. Van Opstal, 2009. "The Consequences of an Open Labour Market in Separated Product Markets in European Professional Football," Review of Business and Economic Literature, Intersentia, vol. 54(4), pages 489-512, December.
    2. Trudo Dejonghe & Wim Van Opstal, 2010. "Competitive balance between national leagues in European football after the Bosman Case," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, vol. 6(2), pages 41-61, Settembre.
    3. Duane W. Rockerbie, 2005. "Comment: The Economics of Professional Sports Leagues," Journal of Sports Economics, , vol. 6(1), pages 107-113, February.
    4. William A. Hamlen Jr., 2007. "Deviations From Equity and Parity in the National Football League," Journal of Sports Economics, , vol. 8(6), pages 596-615, December.
    5. Trudo Dejonghe & Wim Van Opstal, 2008. "The consequences of an open labour market in a closed product market in the economic environment of European professional football," Working Papers 0830, International Association of Sports Economists;North American Association of Sports Economists.
    6. John R. Crooker & Aju J. Fenn, 2007. "Sports Leagues and Parity When League Parity Generates Fan Enthusiasm," Journal of Sports Economics, , vol. 8(2), pages 139-164, May.
    7. Alexander John Bond & Francesco Addesa, 2020. "Competitive Intensity, Fans’ Expectations, and Match-Day Tickets Sold in the Italian Football Serie A, 2012-2015," Journal of Sports Economics, , vol. 21(1), pages 20-43, January.

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