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A Note on Revenue Sharing in Sports Leagues

Author

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  • Matthias Kräkel

    (University of Bonn)

Abstract

The author discusses the optimal sharing of broadcasting revenues given a central marketing system. A league's sports association wants to maximize the joint profits of the sports clubs' owners. The results show that a winner-take-all scheme should be used if the teams are homogeneous. However, if teams are sufficiently heterogeneous, equal sharing will be optimal.

Suggested Citation

  • Matthias Kräkel, 2007. "A Note on Revenue Sharing in Sports Leagues," Journal of Sports Economics, , vol. 8(3), pages 309-316, June.
    • Handle: RePEc:sae:jospec:v:8:y:2007:i:3:p:309-316
    DOI: 10.1177/1527002506287664
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    References listed on IDEAS

    as
    1. Stephen Hall & Stefan Szymanski & Andrew S. Zimbalist, 2002. "Testing Causality Between Team Performance and Payroll," Journal of Sports Economics, , vol. 3(2), pages 149-168, May.
    2. Sonia Falconieri & Frédéric Palomino & József Sákovics, 2004. "Collective Versus Individual Sale of Television Rights in League Sports," Journal of the European Economic Association, MIT Press, vol. 2(5), pages 833-862, September.
    3. Lynne M. Pepall & Daniel J. Richards, 2001. "Reach for the Stars: A Strategic Bidding Game," Economica, London School of Economics and Political Science, vol. 68(272), pages 489-504, November.
    4. Stefan Késenne, 2005. "Revenue Sharing and Competitive Balance," Journal of Sports Economics, , vol. 6(1), pages 98-106, February.
    5. Stefan Szymanski, 2010. "The Economic Design of Sporting Contests," Palgrave Macmillan Books, in: The Comparative Economics of Sport, chapter 1, pages 1-78, Palgrave Macmillan.
    6. Palomino, Frederic & Sakovics, Jozsef, 2004. "Inter-league competition for talent vs. competitive balance," International Journal of Industrial Organization, Elsevier, vol. 22(6), pages 783-797, June.
    7. Frederic Palomino and Luca Rigotti., 2000. "The Sport League's Dilemma: Competitive Balance versus Incentives to Win," Economics Working Papers E00-292, University of California at Berkeley.
    8. Oliver Gurtler & Matthias Krakel, 2003. "Who is declared dead lives longer," Applied Economics Letters, Taylor & Francis Journals, vol. 10(15), pages 995-997.
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    Citations

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    Cited by:

    1. Oliver Gürtler & Markus Lang & Tim Pawlowski, 2015. "On the Release of Players to National Teams," Journal of Sports Economics, , vol. 16(7), pages 695-713, October.

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