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Four cases in sports competition policy: Baseball, judo, football, and motor racing

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  • Budzinski, Oliver

Abstract

Practices and conducts in professional and even amateur sports can be subject to competition laws as soon as commercial activities are involved. From an economic perspective, this implies that both directly commercial activities like the sale of broadcasting/media rights and indirectly commercial activities like defining and enforcing the rules of the games can be hit by competition policy interventions. Setting and enforcing the rules of the game is an activity with commercial effects because it influences attractiveness and marketability of the sports in question. After discussing fundamental issues, this contributions reviews selected landmark cases in sports competition policy from an economic perspective. This includes the U.S. baseball antitrust exemption, access rules to Judo tournaments, sale systems of media rights in European football as well as a unique combination of long-run exclusivity contracts, skewed allocation of common revenues, and special influences on rule-setting by some competitors in Formula One motor racing. Eventually, the areas of state aid to football clubs and mergers in Danish football are sketched.

Suggested Citation

  • Budzinski, Oliver, 2017. "Four cases in sports competition policy: Baseball, judo, football, and motor racing," Ilmenau Economics Discussion Papers 109, Ilmenau University of Technology, Institute of Economics.
  • Handle: RePEc:zbw:tuiedp:109
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    References listed on IDEAS

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    1. Scott E. Atkinson & Linda R. Stanley & John Tschirhart, 1988. "Revenue Sharing as an Incentive in an Agency Problem: An example from the National Football League," RAND Journal of Economics, The RAND Corporation, vol. 19(1), pages 27-43, Spring.
    2. Oliver Budzinski, 2008. "The Governance of Global Competition," Books, Edward Elgar Publishing, number 12951.
    3. Thomas Peeters, 2011. "Broadcast Rights and Competitive Balance in European Soccer," International Journal of Sport Finance, Fitness Information Technology, vol. 6(1), pages 23-39, February.
    4. Oliver Budzinski, 2011. "The Institutional Framework for Doing Sports Business: Principles of EU Competition Policy in Sports Markets," Working Papers 108/11, University of Southern Denmark, Department of Sociology, Environmental and Business Economics.
    5. Brad R. Humphreys & Li Zhou, 2014. "The Louis-Schmelling Paradox and the League Standing Effect Reconsidered," Working Papers 14-22, Department of Economics, West Virginia University.
    6. Roger G. Noll, 2007. "Broadcasting And Team Sports," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(3), pages 400-421, July.
    7. Dennis Coates & Brad R. Humphreys & Li Zhou, 2014. "Reference-Dependent Preferences, Loss Aversion, And Live Game Attendance," Economic Inquiry, Western Economic Association International, vol. 52(3), pages 959-973, July.
    8. Sonia Falconieri & Frédéric Palomino & József Sákovics, 2004. "Collective Versus Individual Sale of Television Rights in League Sports," Journal of the European Economic Association, MIT Press, vol. 2(5), pages 833-862, September.
    9. Peeters, Thomas, 2012. "Media revenue sharing as a coordination device in sports leagues," International Journal of Industrial Organization, Elsevier, vol. 30(2), pages 153-163.
    10. Oliver Budzinski & Janina Satzer, 2011. "Sports Business and Multisided Markets: Towards a New Analytical Framework? (Long Version)," Working Papers 109/11, University of Southern Denmark, Department of Sociology, Environmental and Business Economics.
    11. Oliver Budzinski & Stefan Szymanski, 2015. "Are Restrictions Of Competition By Sports Associations Horizontal Or Vertical In Nature?," Journal of Competition Law and Economics, Oxford University Press, vol. 11(2), pages 409-429.
    12. Pelnar, Gregory, 2007. "Antitrust Analysis of Sports Leagues," MPRA Paper 5382, University Library of Munich, Germany.
    13. Cowie, Campbell & Williams, Mark, 1997. "The economics of sports rights," Telecommunications Policy, Elsevier, vol. 21(7), pages 619-634, August.
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    More about this item

    Keywords

    sports economics; antitrust; competition policy; baseball; judo; football; soccer; motor racing; formula one; media rights; sports broadcasting; competitive balance; cartels; abuse of dominance;

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • Z20 - Other Special Topics - - Sports Economics - - - General
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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