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Open Competition in League Sports

In: The Comparative Economics of Sport

Author

Listed:
  • Stephen F. Ross

    (University of Illinois
    University of California)

  • Stefan Szymanski

    (Imperial College School of Management
    University of Oxford
    University of London)

Abstract

As this chapter goes to print [April 2002], Major League Baseball (MLB) has announced plans to contract from thirty to twenty-eight teams, refusing to permit the relocation of a financially troubled Montreal franchise to our Nation’s capital and strongly hinting that the refusal of Minnesota taxpayers to subsidize a new stadium will result in the demise of the Minnesota Twins.1 At the same time, Los Angeles has more than enough basketball fans to support two teams, but a wealthy mogul continues to steward the Clippers into new lows of mediocrity.2 When Tennessee wanted a pro football team, they had to shell out over $292 million in taxpayer money to lure the Houston Oilers.3 The National Hockey League has doled out American expansion franchises so artfully that the Montreal Canadiens pay more than triple the tax bills of all their American rivals combined.4 Why does this happen?

Suggested Citation

  • Stephen F. Ross & Stefan Szymanski, 2010. "Open Competition in League Sports," Palgrave Macmillan Books, in: The Comparative Economics of Sport, chapter 4, pages 139-173, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-27427-3_4
    DOI: 10.1057/9780230274273_4
    as

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