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The Economic Consequences of Foreigner Rules in National Sports Leagues

  • Markus Lang

    ()

    (Institute for Strategy and Business Economics, University of Zurich)

  • Alexander Rathke

    ()

    (Institute for Empirical Research in Economics, University of Zurich)

  • Marco Runkel

    ()

    (Faculty of Economics and Management, University of Magdeburg)

This paper provides a contest model of a professional team sports league and analyzes the impact of a restriction on foreign players. It shows that a league with binding restrictions on foreign talent for all clubs is more balanced than a league without binding restrictions on foreign talent. Moreover, the wage level of domestic (foreign) talent is higher (lower) in a league with a binding restriction on foreign players. Finally, a tighter restriction on foreign players increases profits of all clubs.

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File URL: http://repec.business.uzh.ch/RePEc/iso/ISU_WPS/103_ISU_full.pdf
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Paper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Working Papers with number 0103.

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Length: 16 pages
Date of creation: Apr 2009
Date of revision: Jul 2009
Handle: RePEc:iso:wpaper:0103
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