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The impact of pooling and sharing broadcast rights in professional team sports

Listed author(s):
  • KÉSENNE, Stefan

In this theoretical analysis, we try to find out what the implications are of pooling and sharing broadcast rights in a sports league. We concentrate on the impact on talent demand, competitive balance and ticket price, using a simplified 2-club non-cooperative Nash equilibrium model with the hiring of talent as the only decision variable, as well as a more general competitive equilibrium model with a large number of teams in the league and with talent hiring and ticket price as decision variables. The main conclusion is that the case for pooling and sharing broadcast rights is not very strong if clubs are profit maximisers. Decentralised selling and performance-based distribution of the rights seems to be the most promising scenario to improve the competitive balance. If clubs are win maximisers, the sharing of broadcast money always improve the competitive balance, but the monopolisation of the broadcast rights by the league is not necessary for sharing.

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Paper provided by University of Antwerp, Faculty of Applied Economics in its series Working Papers with number 2008009.

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Length: 16 pages
Date of creation: May 2008
Handle: RePEc:ant:wpaper:2008009
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  1. Késenne, Stefan, 2012. "Comparing management performance of Belgian football clubs," Edition HWWI: Chapters,in: Zur Ökonomik von Spitzenleistungen im internationalen Sport, pages 195-205 Hamburg Institute of International Economics (HWWI).
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