nep-spo New Economics Papers
on Sports and Economics
Issue of 2019‒07‒29
two papers chosen by
Humberto Barreto
DePauw University

  1. How does online streaming affect antitrust remedies to centralized marketing? The case of European football broadcasting rights By Budzinski, Oliver; Gänßle, Sophia; Kunz-Kaltenhäuser, Philipp
  2. What Made the Tour Successful? Competitive Balance in the Tour de France, 1947-2017 By Jean-François Mignot; Vladimir Bačik; Michal Klobučník

  1. By: Budzinski, Oliver; Gänßle, Sophia; Kunz-Kaltenhäuser, Philipp
    Abstract: The collective sale of football broadcasting rights constitutes a cartel, which, in the European Union, is only allowed if it complies with a number of conditions and obligations, inter alia, partial unbundling and the no-single-buyer rule. These regulations were defined with traditional TV-markets in mind. However, the landscape of audiovisual broadcasting is quickly changing with online streaming services gaining popularity and relevance. This also alters the effects of the conditions and obligations for the centralized marketing arrangements. Partial unbundling may lead to increasing instead of decreasing prices for consumers. Moreover, the combination of partial unbundling and the no-single-buyer rule forces consumers into multiple subscriptions to several streaming services, which increases transaction costs. Consequently, competition authorities need to rethink the conditions and obligations they impose on centralized marketing arrangements in football. We recommend restricting the exclusivity of (live-)broadcasting rights and mandate third-party access to program guide information to redesign the remedies.
    Keywords: collective sale of broadcasting rights,sports economics,antitrust,competition policy,centralized marketing,sports and media,football,online media
    JEL: K21 L40 L83 L82
    Date: 2019
  2. By: Jean-François Mignot (GEMASS - Groupe d'Etude des Méthodes de l'Analyse Sociologique de la Sorbonne - FMSH - Fondation Maison des sciences de l'homme - SU - Sorbonne Université - CNRS - Centre National de la Recherche Scientifique); Vladimir Bačik (Comenius University [Bratislava]); Michal Klobučník (Comenius University [Bratislava])
    Abstract: The Tour de France is the most popular and prestigious bicycle race in the world. Since the 1980s, it has also had increasing economic success. Is such economic success related to improvements in competitive balance among riders, i.e. the degree of parity among opponents and the resulting difficulty to predict the competition's end result? We compute several measures of static (annual) and dynamic (year-to-year) competitive balance for the yellow jersey from 1947 to 2017, both among the top five riders and among team leaders. Our main result is that competitive balance in the Tour de France has not improved much since 1947: the time performances of top riders and team leaders have not become closer to each other – or harder to predict from one year to the next. Therefore, the increasing economic success of the Tour since the 1980s cannot be attributed to improvements in the race's competitive balance. Other factors must have been driving the increasing demand for the Tour, including better-quality television broadcasting of the event.
    Keywords: quantitative history,Tour de France,Cycling,competitive balance,sport performance,competitive intensity
    Date: 2019

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