Sports Economics
Profit Maximiser MR = MC
An industry can be defined from two criteria:
- similarity of products
- similarity of economic activities
A Sport industry can be defined as a cluster of firms that:
- produce sport activities
- provide products and services
- trade and sell products
Meeks ‘3-Sector’ Model of the sport industry:
Sector #1: Sports Entertainment
Sector #2: Sports Products
Sector #3: Sports Support Organisations
Li, Hofacre and Mahoneys ‘2-Sector’ Model of the sport industry:
Assumption #1: relates to sport activities
Assumption #2: industry itself is different
Sector #1: Sport Activity Producing Sector. eg - professional/semi-professional teams, recreational sport establishments, college/school sport competitions
Sector #2: “Sub-Sectors” The Sport Supporting Sector. eg – sell and trade, product provision
The Sport Activity Producing Sector (middle circle) * Professional and semiprofessional teams * Intercollegiate/interscholastic athletics * Municipal and county recreation departments * Recreational sports establishments * Independent professional athletes and other independent activity producers
The Sport Supporting Sector (6 surrounding circles) * Providing products and services * Selling and trading products
1. Administrative or Regulatory Associations in Professional Sport
Primary responsibility: * Constructive environment
Major activities: * Competition schedules * Collective bargaining agreements * Various rules and regulatory policies * National TV agreements
2. Sporting Goods & Manufacturers * Athletic sport clothing, footwear and equiptment * Recreational transport * Manfacture sporting goods or, companies that distribute and sell
3. Sports Facilities and Buildings Defined * Varies depending on size. * Varies also depending on the type of the facility ownership.
4. Sport Media Defined * Entertains consumers *
An industry can be defined from two criteria:
- similarity of products
- similarity of economic activities
A Sport industry can be defined as a cluster of firms that:
- produce sport activities
- provide products and services
- trade and sell products
Meeks ‘3-Sector’ Model of the sport industry:
Sector #1: Sports Entertainment
Sector #2: Sports Products
Sector #3: Sports Support Organisations
Li, Hofacre and Mahoneys ‘2-Sector’ Model of the sport industry:
Assumption #1: relates to sport activities
Assumption #2: industry itself is different
Sector #1: Sport Activity Producing Sector. eg - professional/semi-professional teams, recreational sport establishments, college/school sport competitions
Sector #2: “Sub-Sectors” The Sport Supporting Sector. eg – sell and trade, product provision
The Sport Activity Producing Sector (middle circle) * Professional and semiprofessional teams * Intercollegiate/interscholastic athletics * Municipal and county recreation departments * Recreational sports establishments * Independent professional athletes and other independent activity producers
The Sport Supporting Sector (6 surrounding circles) * Providing products and services * Selling and trading products
1. Administrative or Regulatory Associations in Professional Sport
Primary responsibility: * Constructive environment
Major activities: * Competition schedules * Collective bargaining agreements * Various rules and regulatory policies * National TV agreements
2. Sporting Goods & Manufacturers * Athletic sport clothing, footwear and equiptment * Recreational transport * Manfacture sporting goods or, companies that distribute and sell
3. Sports Facilities and Buildings Defined * Varies depending on size. * Varies also depending on the type of the facility ownership.
4. Sport Media Defined * Entertains consumers *