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The implications of athlete freedom to contract: lessons from North America
Author(s) -
Sanderson Allen R.,
Siegfried John J.
Publication year - 1997
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/1468-0270.00035
Subject(s) - revenue sharing , payroll , revenue , agency (philosophy) , ticket , league , judgement , athletes , economic justice , control (management) , balance (ability) , business , economics , labour economics , finance , political science , law , accounting , microeconomics , management , sociology , medicine , social science , physics , computer security , astronomy , computer science , physical medicine and rehabilitation , physical therapy
The 1995 Bosman judgement by the European Court of Justice granted professional athletes in Europe inter‐country freedom to contract and eased foreign‐player restrictions. Based on two decades of free‐agency experience in North America, we expect to see salaries of European players rise substantially, top players earn more while marginal players earn less, and players absorb more of their training costs. Ticket prices and competitive balance will be unaffected. Clubs and leagues will be likely to attempt to control player costs by instituting schemes such as payroll caps and increased revenue sharing.