Economics of Sport
Business and Economics of Sports 3304HSL
Semester 1, 2013
While sports leagues appear to be necessary for the delivery of competitive matches and seasons, they often actually function to maximise profits for team owners. What should governments do to ensure that the interests of all stakeholders are protected without jeopardizing the competitive environment established by leagues?
Johan Jurland s2818009
Words: 2360
Table of Contents
1. Introduction 3
1.1 Background 3
1.2 Win / Profit Maximising 3
1.3 Government Involvement 4
2. Key Issues 4
2.1 European Football 4
2.2 Other Leagues 6
3. Summary 6
4. References 8
1. Introduction:
This report will overview and discuss how stakeholders in professional sports can get as much as they want out of the sport, without too much involvement from the government. It will also cover some of the purposes of government-intervention and what they should do to keep the competitive balance intact for the leagues.
There will be examples and discussions drawn from clubs and leagues in the European Soccer and also differences between how sports leagues on either sides of the Atlantic ocean works in this matter. The importance of keeping stakeholders happy is the key to on-pitch success. Stakeholders in sport are everybody involved with sport; participants (players/athletes), fans, governing bodies, financial investors and communities at large.
1.1 Background:
Since the early stages of the discussion and the involvement of the economics side of the field of sports, Naele (1964) identified professional sports leagues as a different animal than any other competitive industry in the world we know today. The main focus for professional sport leagues is to provide and compromise teams to a highly competitive level where they can
Semester 1, 2013
While sports leagues appear to be necessary for the delivery of competitive matches and seasons, they often actually function to maximise profits for team owners. What should governments do to ensure that the interests of all stakeholders are protected without jeopardizing the competitive environment established by leagues?
Johan Jurland s2818009
Words: 2360
Table of Contents
1. Introduction 3
1.1 Background 3
1.2 Win / Profit Maximising 3
1.3 Government Involvement 4
2. Key Issues 4
2.1 European Football 4
2.2 Other Leagues 6
3. Summary 6
4. References 8
1. Introduction:
This report will overview and discuss how stakeholders in professional sports can get as much as they want out of the sport, without too much involvement from the government. It will also cover some of the purposes of government-intervention and what they should do to keep the competitive balance intact for the leagues.
There will be examples and discussions drawn from clubs and leagues in the European Soccer and also differences between how sports leagues on either sides of the Atlantic ocean works in this matter. The importance of keeping stakeholders happy is the key to on-pitch success. Stakeholders in sport are everybody involved with sport; participants (players/athletes), fans, governing bodies, financial investors and communities at large.
1.1 Background:
Since the early stages of the discussion and the involvement of the economics side of the field of sports, Naele (1964) identified professional sports leagues as a different animal than any other competitive industry in the world we know today. The main focus for professional sport leagues is to provide and compromise teams to a highly competitive level where they can
References: Andreff W., 1989, Economie politique du sport, Paris, Andreff W., 2001, ‘The Correlation between Economic Underdevelopment and Sport’, European Sport Management Quarterly Bosshardt, A., Bridge, T., Hanson, C., Shaffer,A., Stenson, C., & Thorpe, A., 2013, The Football Money League of Deloitte, 16th Edition Bottenburg, V., M, 2010, Journal of Sport History ,Vol 37, No 1, 41-53 Boyle, R., Haynes, R., 2004, Football in the New Media Age Cain, L Dietl, M. H., Grossmann, M., & Lang, M., 2011, Competitive Balance and Revenue Sharing in Sports Leagues With Utility-Maximizing Teams Dobson, S & Goddard, J., 2011, The Economics of Football, 2nd Edition, Dunning, E., 1999, Sport Matters: Sociological studies of sport, violence and civilization. El Hodiri, M., & Quirk, J Fort, R., & Quirk, J.. 1999. The college football industry pp. 11-25 Késenne, S., 2000, Revenue Sharing and Competitive Balance in Professional Team Sports Késenne S., 2006) The Win Maximisation Model Reconsidered. Flexible Talent Supply and Efficiency Wages. Journal of Sports Economics, 7(4), 416-27. McWha, V., Smith, J., & Clarke, M., 2000, The Governments role in sport, fitness and leisure Neal, C., W, 1964, The Peculiar Economics of Professional Sports, Vol 78, No 1, 1.14 Pantanella, M., 2012, Premier League TV Rights, Retrieved from http://soccerlens.com/premier-league-tv-rights/94662/ Seepersaud, S., 2010, Most profitable sports leagues Retrieved from http://au.askmen.com/sports/business_200/218_sports_business.html The Guardian, The Premier League Season Review, 2011 Quirk, J. & Fort, R.D., 1992, The business of professional team sports Quirk, J