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Revenue sharing and competitive balance in professional team sports

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  • KÉSENNE, Stefan

Abstract

The aim of this paper is to clarify the apparent confusion in the literature about the impact of a revenue sharing arrangement on the competitive balance in a sports league. A crucial factor in the discussion seems to be the impact of the ‘absolute’ quality of the teams on the clubs’ revenues, beside the impact of the relative quality. The analysis shows that revenue sharing improves the competitive balance under both the profit and the utility maximizing hypothesis.

Suggested Citation

  • KÉSENNE, Stefan, "undated". "Revenue sharing and competitive balance in professional team sports," Working Papers 1999019, University of Antwerp, Faculty of Business and Economics.
    • Handle: RePEc:ant:wpaper:1999019
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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.
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    7. Simon Rottenberg, 1956. "The Baseball Players' Labor Market," Journal of Political Economy, University of Chicago Press, vol. 64(3), pages 242-242.
    8. Daniel Rascher, 1997. "A model of a professional sports league," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 3(3), pages 327-328, August.
    9. Daniel R. Marburger, 1997. "Gate Revenue Sharing And Luxury Taxes In Professional Sports," Contemporary Economic Policy, Western Economic Association International, vol. 15(2), pages 114-123, April.
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