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

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  • KÉSENNE, Stefan

Abstract

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.

Suggested Citation

  • KÉSENNE, Stefan, 2008. "The impact of pooling and sharing broadcast rights in professional team sports," Working Papers 2008009, University of Antwerp, Faculty of Applied Economics.
  • Handle: RePEc:ant:wpaper:2008009
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    File URL: https://repository.uantwerpen.be/docman/irua/9613b8/cd29abe1.pdf
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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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    Cited by:

    1. Michela Pierini, 2011. "Diritti Tv E Competitive Balance Nel Calcio Professionistico Italiano," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, vol. 7(2), pages 87-113, September.
    2. Stefan Kesenne, 2014. "The collection and distribution of media rights in a win-maximization league," Chapters,in: Handbook on the Economics of Professional Football, chapter 5, pages 73-79 Edward Elgar Publishing.

    More about this item

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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