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Competitive balance and gate revenue sharing in team sports

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  • SZYMANSKI, Stefan
  • KÉSENNE, Stefan

Abstract

This paper shows that under reasonable conditions that increasing gate revenue sharing among teams in a sports league will produce a more uneven contest, i.e. reduce competitive balance. This result has significant implications for antitrust authorities and legislators, who have tended to assume that revenue sharing arrangements will necessarily promote competitive balance.

Suggested Citation

  • SZYMANSKI, Stefan & KÉSENNE, Stefan, 2003. "Competitive balance and gate revenue sharing in team sports," Working Papers 2003003, University of Antwerp, Faculty of Business and Economics.
    • Handle: RePEc:ant:wpaper:2003003
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    References listed on IDEAS

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    11. Stefan Szymanski, 2006. "Reply: "Professional Team Sports Are Only a Game: The Walrasian Fixed-Supply Conjecture Model, Contest-Nash Equilibrium, and the Invariance Principle"," Journal of Sports Economics, , vol. 7(2), pages 240-243, May.
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    More about this item

    Keywords

    Team sports; Contest (tournament) theory; Competitive balance;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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