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The Economic Consequences of Foreigner Rules in National Sports Leagues

Author

Listed:
  • 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)

Abstract

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.

Suggested Citation

  • Markus Lang & Alexander Rathke & Marco Runkel, 2009. "The Economic Consequences of Foreigner Rules in National Sports Leagues," Working Papers 0103, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Jul 2009.
    • Handle: RePEc:iso:wpaper:0103
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Limit foreigners in sports leagues
      by Economic Logician in Economic Logic on 2009-08-17 19:49:00
    2. Limiting Foreigners in Sports Leagues
      by jamesreade in International Journal of Sport Finance Blog on 2009-08-20 22:35:45
    3. 6+5: the economics
      by chris dillow in Stumbling and Mumbling on 2009-05-05 18:57:45

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    Cited by:

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    2. Ozmen M. Utku, 2012. "Foreign Player Quota, Experience and Efficiency of Basketball Players," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 8(1), pages 1-18, March.

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    More about this item

    Keywords

    Team Sports Leagues; UEFA's Homegrown Rule; FIFA's 6+5 Rule; Competitive Balance; Player Salaries;
    All these keywords.

    JEL classification:

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

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