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A Tale of Two Gate‐Sharing Plans: The National Football League and the National League, 1952‐1956

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  • David G. Surdam

Abstract

Do professional sports leagues design revenue‐sharing rules primarily to help financially weaker teams, or do such organizations view revenue‐sharing rules as ways to reward teams for being competitive? Baseball's National League and the National Football League provide evidence from the 1950s that revenue‐sharing plans may have surprising effects. If strong teams draw well on the road, revenue‐sharing plans may provide modest succor to teams in smaller cities and may benefit teams in larger cities. The two leagues' experiences also suggest that owners are willing to enact regressive aspects in their revenue‐sharing plans, possibly to forestall moral hazard possibilities arising from automatically helping teams that remain poor draws or that fail to improve.

Suggested Citation

  • David G. Surdam, 2007. "A Tale of Two Gate‐Sharing Plans: The National Football League and the National League, 1952‐1956," Southern Economic Journal, John Wiley & Sons, vol. 73(4), pages 931-946, April.
    • Handle: RePEc:wly:soecon:v:73:y:2007:i:4:p:931-946
    DOI: 10.1002/j.2325-8012.2007.tb00811.x
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    References listed on IDEAS

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    Cited by:

    1. Rockerbie, Duane & Easton, Stephen, 2017. "Risk Diversification from Revenue Sharing in a Professional Sports League: Measuring Welfare Gains," MPRA Paper 77431, University Library of Munich, Germany.
    2. Rockerbie, Duane, 2011. "The Invariance Proposition in Baseball: New Evidence," MPRA Paper 55020, University Library of Munich, Germany.
    3. Duane Rockerbie & Stephen Easton, 2018. "Revenue Sharing in Major League Baseball: The Moments That Meant so Much," IJFS, MDPI, vol. 6(3), pages 1-16, August.

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