Salary Caps and Luxury Taxes: Insights from Professional Team Sports (Gehaltsobergrenzen und Luxussteuern: Erkenntnisse aus dem professionellen Mannschaftssport)

2010 ◽  
Author(s):  
Helmut M. Dietl ◽  
Tobias Duschl ◽  
Markus Lang
Keyword(s):  
Team Sports ◽  
Professional Team Sports ◽  
Salary Caps

scholarly journals The Effect of Salary Caps in Professional Team Sports on Social Welfare

2009 ◽  
Vol 9 (1) ◽  
Author(s):  
Helmut M Dietl ◽  
Markus Lang ◽  
Alexander Rathke
Keyword(s):  
Theoretical Model ◽  
Social Welfare ◽  
Team Sports ◽  
Welfare Effect ◽  
The Other ◽  
Competitive Balance ◽  
Large Market ◽  
Professional Team Sports ◽  
Salary Caps ◽  
Salary Cap

Abstract This paper provides a theoretical model of a team sports league and studies the welfare effect of salary caps. It shows that salary caps will increase competitive balance and decrease overall salary payments within the league. The resulting effect on social welfare is counter-intuitive and depends on the preference of fans for aggregate talent and for competitive balance. A salary cap that binds only for large-market clubs will increase social welfare if fans prefer aggregate talent despite the fact that the salary cap will result in lower aggregate talent. If fans prefer competitive balance, on the other hand, any binding salary cap will reduce social welfare.

The Beginnings (1946–48)

2017 ◽  
Author(s):  
David George Surdam
Keyword(s):  
Team Sports ◽  
Revenue Sharing ◽  
Professional Basketball ◽  
Low Level ◽  
Professional Team Sports ◽  
Two Cities ◽  
Territorial Rights ◽  
Salary Caps

This chapter examines the origins of the BAA, which was fraught with disappointment and difficulties. The nascent BAA sought the two advantages of territorial rights and the reserve clause that other professional team sports league owners possessed, but the league faced competition from an incumbent league—the National Basketball League (NBL). The two basketball leagues contested just one or two cities and were largely able to avoid a ruinous bidding war for players, including graduating college talent. This low level of strife was unique to professional basketball and may have contributed to the eventual success of those teams that survived. The BAA owners also made crucial decisions regarding revenue sharing, team salary caps, and differentiating their product from the college game.

Professional Team Sports Organizations’ Corporate Social Responsibility Activities: Corporate Image and Chosen Communication Outlets’ Influence on Consumers’ Reactions

2020 ◽  
pp. 1-18
Author(s):  
Cindy Lee ◽  
Hyejin Bang ◽  
David J. Shonk
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Team Sports ◽  
The United States ◽  
Corporate Image ◽  
Sports Organizations ◽  
Professional Team Sports ◽  
Main Effect ◽  
Sport Teams ◽  
Corporate Social

As professional sport teams’ involvement with corporate social responsibility (CSR) activities are prevalent and expected by the public, there has been more attention on the factors that can influence consumers’ reactions to CSR activities. This study investigated the influence of two factors—corporate image and organization choice of communication vehicle—on individuals’ responses, perceived motive, and change of attitude to a professional team sports organization’s CSR activities. A total of 225 usable surveys were collected from a university located in the southern region of the United States for data analyses. The study showed that corporate image had a main effect on perceived motives, Munfavorable = 5.07, Mfavorable = 5.60, F(1, 216) = 6.38, p < .05, , and attitudes, Munfavorable = 4.64, Mfavorable = 5.49; F(1, 216) = 18.34, p < .05, , toward the team due to CSR activities, while there was no main effect for the professional team sports organization’s chosen communication vehicle, F(2, 217) = 1.09, p > .05, for their CSR activities. The importance of building good corporate image and communicating CSR activities to the fan base are also discussed.

The value of having a first-tier football club in the municipality (even) when tangible benefits are absent

2019 ◽  
Vol 9 (3) ◽  
pp. 222-238
Author(s):  
Christian Gjersing Nielsen ◽  
Line Bjørnskov Pedersen ◽  
Rasmus K. Storm
Keyword(s):  
Contingent Valuation Method ◽  
Team Sports ◽  
Binary Logistic Regression ◽  
Economic Benefits ◽  
Content Type ◽  
Factors Affecting ◽  
Football Club ◽  
Sports Clubs ◽  
Public Subsidy ◽  
Professional Team Sports

Purpose The purpose of this paper is to examine citizens’ willingness to pay (WTP), in relation to having a professional first-tier football club in a medium-sized Danish municipality, when tangible economic benefits such as economic growth and/or inbound migration produced by these are absent. Design/methodology/approach Using the contingent valuation method on survey respondents, the study examines factors affecting WTP using binary logistic regression and interval regression and further extrapolates the WTP from the sample to the municipal population. Findings Citizens significantly value having a first-tier football club in their municipality even when tangible benefits are absent, although a large proportion of respondents stated to be against the municipality being financially involved in professional team sports clubs (PTSC). WTP is largely driven by interest in sports and the local football club. It is argued that the findings cannot be generalized across contexts. Research limitations/implications There can be circumstances where public subsidy of PTSCs is beneficial to economic welfare. However, authorities should be careful in their evaluation of whether to subsidize PTSCs. Originality/value The study expands on existing research by informing respondents about the lack of tangible benefits produced by PTSCs, hereby focusing on WTP on an informed basis.

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