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The American “Not-So-Socialist†League in the Postwar Era

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  • David G. Surdam

    (University of Chicago)

Abstract

A suggested remedy for competitive imbalance in professional sports leagues is for home teams to share gate and broadcasting revenues. In some models, researchers assume that as a team becomes stronger, its ability to draw on the road falls (because the rival team is, ceteris paribus, weaker). The experience in the American League during the 1950s demonstrates that this assumption does not hold at all times for all leagues. In cases where stronger teams also draw well on the road, gate sharing may shift revenue from weaker teams to stronger teams.

Suggested Citation

  • David G. Surdam, 2002. "The American “Not-So-Socialist†League in the Postwar Era," Journal of Sports Economics, , vol. 3(3), pages 264-290, August.
    • Handle: RePEc:sae:jospec:v:3:y:2002:i:3:p:264-290
    DOI: 10.1177/1527002502003003004
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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. E. Woodrow Eckard, 2001. "Baseball’s Blue Ribbon Economic Report," Journal of Sports Economics, , vol. 2(3), pages 213-227, August.
    3. Stefan Kesenne, 2000. "Revenue Sharing and Competitive Balance in Professional Team Sports," Journal of Sports Economics, , vol. 1(1), pages 56-65, February.
    4. Scully, Gerald W., 1995. "The Market Structure of Sports," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226743950, April.
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    Cited by:

    1. David G. Surdam, 2007. "A Tale of Two Gate‐Sharing Plans: The National Football League and the National League, 1952‐1956," Southern Economic Journal, John Wiley & Sons, vol. 73(4), pages 931-946, April.
    2. Wladimir Andreff, 2009. "Équilibre compétitif et contrainte budgétaire dans une ligue de sport professionnel," Revue économique, Presses de Sciences-Po, vol. 60(3), pages 591-633.
    3. Pelnar, Gregory, 2007. "Antitrust Analysis of Sports Leagues," MPRA Paper 5382, University Library of Munich, Germany.
    4. Andreff, Wladimir, 2007. "Régulation et institutions en économie du sport," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 1.

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