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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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    1. Simon Rottenberg, 1956. "The Baseball Players' Labor Market," Journal of Political Economy, University of Chicago Press, vol. 64(3), pages 242-242.
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    3. Stefan Szymanski & Stefan Késenne, 2010. "Competitive Balance and Gate Revenue Sharing in Team Sports," Palgrave Macmillan Books, in: The Comparative Economics of Sport, chapter 7, pages 229-243, Palgrave Macmillan.
    4. Daniel R. Marburger, 1997. "Gate Revenue Sharing And Luxury Taxes In Professional Sports," Contemporary Economic Policy, Western Economic Association International, vol. 15(2), pages 114-123, April.
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    7. Rodney Fort & James Quirk, 1995. "Cross-subsidization, Incentives, and Outcomes in Professional Team Sports Leagues," Journal of Economic Literature, American Economic Association, vol. 33(3), pages 1265-1299, September.
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    Cited by:

    1. 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.
    2. 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.
    3. Rockerbie, Duane, 2011. "The Invariance Proposition in Baseball: New Evidence," MPRA Paper 55020, University Library of Munich, Germany.

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