Competitive Balance in North American Professional Sports

2017 ◽  
pp. 190-206 ◽  
Author(s):  
Rodney Fort
Keyword(s):  
North American ◽  
Professional Sports ◽  
Competitive Balance

Player Mobility and Competitive Balance Regulation in Professional Sports Leagues

2021 ◽  
pp. 152700252110595
Author(s):  
Marco Runkel
Keyword(s):  
North American ◽  
Professional Sports ◽  
Revenue Sharing ◽  
Competitive Balance ◽  
Extended Version ◽  
Sports Leagues ◽  
The Difference ◽  
Salary Caps ◽  
Professional Sports Leagues

Competitive balance regulation is more widespread in North American than in Europan sports leagues. The present paper addresses the question whether this observation can be explained with the help of differences in the degree of player mobility. Using an extended version of the workhorse contest model of sports leagues, the paper shows that the answer depends on the kind of competitive balance regulation. While player mobility may help to explain the difference with respect to salary regulation (e.g., salary caps), the choice of revenue sharing schemes turns out to be independent of player mobility.

Financial Returns in Major League Soccer

2021 ◽  
pp. 152700252110227
Author(s):  
John Charles Bradbury
Keyword(s):  
United States ◽  
Ownership Structure ◽  
North American ◽  
Consumer Demand ◽  
Professional Sports ◽  
The United States ◽  
Professional Soccer ◽  
Major League Soccer ◽  
Major League ◽  
Sports Leagues

Major League Soccer (MLS) is the top-tier professional soccer league serving the United States and Canada. This study examines factors hypothesized to impact consumer demand for professional sports on team revenue in this nascent league. The estimates are consistent with positive returns to performance, novelty effects from newer teams, and varying impacts from roster quality and composition. Other factors hypothesized to be important for MLS teams (e.g., stadium quality and market demographics) are not associated with team revenue. The estimates are similar to findings in other major North American sports leagues, even though MLS operates with a unique single-entity ownership structure that has the potential to disincentivize individual team investments by league owners.

Dynamic pricing usage in sports for revenue management

2016 ◽  
Vol 42 (9) ◽  
pp. 913-921 ◽  
Author(s):  
Adrien Bouchet ◽  
Michael Troilo ◽  
Brian R. Walkup
Keyword(s):  
North American ◽  
Dynamic Pricing ◽  
Professional Sports ◽  
Business Analytics ◽  
Content Type ◽  
Sports Organizations ◽  
Decision Making Processes ◽  
Sports Leagues ◽  
Job Title ◽  
Travel Services

Purpose The purpose of this paper is to examine the extent to which dynamic pricing is utilized in North American professional sports. While industries such as airlines and travel services have employed dynamic pricing for decades, professional sports is only now starting to adopt it. Design/methodology/approach The authors survey and interview high ranking executives and managers in North American sports organizations. A total of 72 managers and executives from the four major North American professional sports leagues as well as other sport properties were surveyed. Descriptive statistics and a basic regression provide insight into perceptions v. actual practice among sports organizations. Findings While most sports organizations perceive high usage of dynamic pricing within their organization, current procedures lag. Nearly 70 percent of respondents believe that their organizations frequently or always apply business analytics to dynamic pricing, but only 30 percent update their prices daily. Fully 50 percent of organizations do not automate decision-making processes, which is a hallmark of dynamic pricing. The perception of constant use of analytics in dynamic pricing intensifies as job title increases. Originality/value As one of the initial surveys looking at the usage of dynamic pricing in North American professional sports, this study provides a glimpse into both the perception and the reality. It suggests that there is still ample room for improvement.

Competitive Balance in Team Sports and the Impact of Revenue Sharing

2006 ◽  
Vol 20 (1) ◽  
pp. 39-51 ◽  
Author(s):  
Stefan Kesenne
Keyword(s):  
Economic Theory ◽  
Relative Size ◽  
Team Sports ◽  
Professional Sports ◽  
Revenue Sharing ◽  
Competitive Balance ◽  
The Impact ◽  
Uncertainty Of Outcome

This article uses economic theory to examine the variables that affect the competitive balance in a professional sports league and the impact of revenue sharing. The generally accepted proposition that revenue sharing does not affect the competitive balance in a profi t-maximizing league has been challenged by many. It is shown that the competitive balance and the impact of revenue sharing not only depend on the relative size of the market of the clubs, but that they are also affected by the objectives of the club owners and the importance to spectators of absolute team quality and uncertainty of outcome. Furthermore, the clubs’ hiring strategies, including the talent supply conditions, turn out to be important elements affecting competitive balance and the impact of revenue sharing.

scholarly journals La economía del deporte

2020 ◽  
Vol 30 (2) ◽  
pp. 387
Author(s):  
Plácido Rodríguez
Keyword(s):  
Labor Market ◽  
Economic Analysis ◽  
Professional Sports ◽  
Competitive Balance ◽  
Sports Economics

This paper presents some of the major characteristics of sports economics which represents a peculiar economy in the economic analysis. We analyze the characteristics of the sport product, the study of the behavior of clubs, leagues and competitive balance and also the player´s labor market and the demand of professional sports.

Collective Bargaining in a Basic North American Sports League Model With Broadcasting Revenue

2019 ◽  
Vol 20 (8) ◽  
pp. 1088-1118 ◽  
Author(s):  
Paul Madden
Keyword(s):  
Collective Bargaining ◽  
North American ◽  
Nash Bargaining Solution ◽  
Nash Bargaining ◽  
Collective Bargaining Agreement ◽  
Market Size ◽  
Bargaining Solution ◽  
Competitive Balance ◽  
Local Revenue ◽  
Salary Cap

The general firm/trade union bargaining literature is brought to bear on a specific North American sports league model, where talent supply is perfectly inelastic and profit-maximizing clubs receive local (gate) revenue plus an equal share of league broadcasting revenue. Club and player representatives negotiate a collective bargaining agreement (CBA) on the levels of local revenue sharing, salary cap, and salary floor. Results characterize the set of efficient bargains and the Nash bargaining solution and show how they are affected by increases in broadcasting market size, focusing on player salaries, competitive balance, the content of CBA documents, and comparisons with laissez-faire.

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