Premium
Competitive balance and gate revenue sharing in team sports
Author(s) -
Szymanski Stefan,
Késenne Stefan
Publication year - 2004
Publication title -
the journal of industrial economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.93
H-Index - 77
eISSN - 1467-6451
pISSN - 0022-1821
DOI - 10.1111/j.0022-1821.2004.00220.x
Subject(s) - revenue sharing , balance (ability) , contest , revenue , league , business , industrial organization , microeconomics , economics , finance , political science , psychology , physics , astronomy , law , neuroscience
This paper shows that under reasonable conditions, increasing gate revenue sharing among teams in a sports league will produce a more uneven contest, i.e. reduce competitive balance. This result has significant implications for antitrust authorities and legislators, who have tended to assume that revenue sharing arrangements will necessarily promote competitive balance.