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Similar Economic Histories, Different Industrial Structures: Transatlantic Contrasts in the Evolution of Professional Sports Leagues

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  • CAIN, LOUIS P.
  • HADDOCK, DAVID D.

Abstract

Industries that have different structures in Europe than in America can teach useful lessons about industrial evolution. Despite similar initial histories, European professional sports leagues adopted team promotion and relegation, which facilitates much easier entry than is possible in North America, where leagues themselves create new franchises to sell to investors. By contrasting the histories of the English Football League and the National Baseball League, we show that their structures arose from differences in geographic compactness, the entertainment level of games, and territorial monopolies. As the evolution becomes more understandable, the persistence of the intercontinental difference becomes more problematic.

Suggested Citation

  • Cain, Louis P. & Haddock, David D., 2005. "Similar Economic Histories, Different Industrial Structures: Transatlantic Contrasts in the Evolution of Professional Sports Leagues," The Journal of Economic History, Cambridge University Press, vol. 65(4), pages 1116-1147, December.
    • Handle: RePEc:cup:jechis:v:65:y:2005:i:04:p:1116-1147_00
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    Cited by:

    1. Nicola Giocoli, 2007. "Competitive balance in football leagues when teams have different goals," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 54(3), pages 345-370, September.
    2. Juha‐Antti Lamberg & Mirva Peltoniemi, 2020. "The nanoeconomics of firm‐level decision‐making and industry evolution: Evidence from 200 years of paper and pulp making," Strategic Management Journal, Wiley Blackwell, vol. 41(3), pages 499-529, March.
    3. E. Woodrow Eckard, 2017. "The Uncertainty-of-Outcome Hypothesis and the Industrial Organization of Sports Leagues," Journal of Sports Economics, , vol. 18(3), pages 298-317, April.
    4. Bradbury, John Charles, 2017. "Monopsony and competition: The impact of rival leagues on player salaries during the early days of baseball," Explorations in Economic History, Elsevier, vol. 65(C), pages 55-67.
    5. John K. Wilson & Richard Pomfret, 2014. "Public Policy and Professional Sports," Books, Edward Elgar Publishing, number 15381.
    6. Lional Frost & Luc Borrowman & Abdel K. Halabi, 2015. "Stadiums and Scheduling: Measuring Deadweight Losses in Professional Sports Leagues, 1920-1970," Monash Economics Working Papers 07-15, Monash University, Department of Economics.
    7. Liam J. A. Lenten, 2015. "Measurement of Competitive Balance in Conference and Divisional Tournament Design," Journal of Sports Economics, , vol. 16(1), pages 3-25, January.

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