nep-spo New Economics Papers
on Sports and Economics
Issue of 2008‒06‒21
two papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. The impact of pooling and sharing broadcast rights in professional team sports By Kesenne S.
  2. The Impact of College Athletics on Employment in the Restaurant and Accommodations Industries By Bernard F. Lentz; David N. Laband

  1. By: Kesenne S.
    Abstract: In this theoretical analysis, we try to find out what the implications are of pooling and sharing broadcast rights in a sports league. We concentrate on the impact on talent demand, competitive balance and ticket price, using a simplified 2-club non-cooperative Nash equilibrium model with the hiring of talent as the only decision variable, as well as a more general competitive equilibrium model with a large number of teams in the league and with talent hiring and ticket price as decision variables. The main conclusion is that the case for pooling and sharing broadcast rights is not very strong if clubs are profit maximisers. Decentralised selling and performance-based distribution of the rights seems to be the most promising scenario to improve the competitive balance. If clubs are win maximisers, the sharing of broadcast money always improve the competitive balance, but the monopolisation of the broadcast rights by the league is not necessary for sharing.
    Date: 2008–05
  2. By: Bernard F. Lentz (Drexel University); David N. Laband (Auburn University)
    Abstract: In this paper, we analyze Metropolitan and Micropolitan Statistical Area (MSA)-level data in the U.S. to examine the economic impact of college athletics. Specifically, we examine the relationship between total athletics revenues (aggregated across all colleges in an MSA) and MSA-level employment in the accommodations and food services industries. Controlling for a variety of other factors that might influence hotel/restaurant employment within an MSA, we find that below $40 million (in 2005) in college athletics revenues there is no evidence that college athletics affects MSA employment in the food services and accommodations industries. However, above $40 million we find highly significant impacts on employment in the food services and accommodations industries that climb with college sports revenue generation.
    Keywords: sports, college athletics, economic impact, food services and accommodations, tourism
    JEL: L83
    Date: 2008–06

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