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Sharing the Revenues from Broadcasting Sport Events

Author

Listed:
  • Gustavo Bergantiños

    (ECOSOT, Universidade de Vigo, 36310 Vigo, Spain)

  • Juan D. Moreno-Ternero

    (Department of Economics, Universidad Pablo de Olavide, 41013 Seville, Spain)

Abstract

We study the problem of sharing the revenues from broadcasting sport league events among participating teams. We provide direct, axiomatic, and game-theoretical foundations for two focal rules: the equal-split rule and concede-and-divide . The former allocates the revenues generated from broadcasting each game equally among the participating teams in the game. The latter concedes each team the revenues from its fan base and divides equally the residual. We also provide an application studying the case of sharing the revenue from broadcasting games in La Liga , the Spanish Football League. We show that hybrid schemes, combining our rules with lower bounds and performance measures, yield close outcomes to the current allocation being implemented by the Spanish National Professional Football League Association.

Suggested Citation

  • Gustavo Bergantiños & Juan D. Moreno-Ternero, 2020. "Sharing the Revenues from Broadcasting Sport Events," Management Science, INFORMS, vol. 66(6), pages 2417-2431, June.
    • Handle: RePEc:inm:ormnsc:v:66:y:2020:i:6:p:2417-2431
    DOI: 10.1287/mnsc.2019.3313
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    References listed on IDEAS

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    More about this item

    Keywords

    resource allocation; broadcasting; sport events; concede-and-divide; Shapley value;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • Z20 - Other Special Topics - - Sports Economics - - - General

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