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Sports Business and the Theory of Multisided Markets

Author

Listed:
  • Oliver Budzinski

    () (Department of Environmental and Business Economics, University of Southern Denmark)

  • Janina Satzer

    () (Department of Environmental and Business Economics, University of Southern Denmark)

Abstract

Despite still being younger than a decade, the theory of multisided market has offered numerous valuable insights for the analysis of industries in which a supplier serves two distinct customer groups that are indirectly interrelated by externalities. Examples include payment systems, matching agencies, commercial media and software platforms. However, professional sports markets have largely been neglected so far in this kind of research although they possess the characteristics of multisided markets. We contribute to filling this gap by describing the platform elements of professional suppliers of sports events and outlining issues where an application of this theoretical framework is likely to provide valuable insights and to add to the existing knowledge. Among these problems are integrative pricing strategies of sports clubs towards such different customer groups like attendees, broadcasters, sponsors, etc., including their welfare and antitrust implications, design decisions of sports associations in order to promote positive feedback loops among the customer groups as well as management strategies to reinforce positive externalities among customer groups and alleviate negative ones. We thank Anna Lund Jepsen for valuable comments on an earlier version of this paper and Barbara Güldenring for excellent editorial assistance.

Suggested Citation

  • Oliver Budzinski & Janina Satzer, 2009. "Sports Business and the Theory of Multisided Markets," Working Papers 85/09, University of Southern Denmark, Department of Sociology, Environmental and Business Economics.
  • Handle: RePEc:sdk:wpaper:85
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    References listed on IDEAS

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    Cited by:

    1. Saldsieder Nina & Wentzel Dirk, 2014. "Ordnungsfragen des europäischen Profifußballs: Das Konzept des Financial Fair Play und seine Erfolgsaussichten / The Concept of Financial Fair Play and his prospects of success," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 65(1), pages 229-262, January.

    More about this item

    Keywords

    Sports economics; sports management; two-sided markets; multisided platforms; professional sports business; pricing strategies; broadcasting rights;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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