nep-spo New Economics Papers
on Sports and Economics
Issue of 2023‒03‒06
two papers chosen by
Humberto Barreto
DePauw University

  1. Cost-benefit Analysis of an ÔAverageÕ Professional Sports Team or Stadium in the United States By Cristian F. Sepulveda
  2. Broadcasting La Liga By Gustavo Bergantiños; Juan D. Moreno-Ternero

  1. By: Cristian F. Sepulveda (Department of Economics, Farmingdale State College, State University of New York)
    Abstract: Professional sports teams commonly reevaluate their location decisions based on the prospect of building new, more attractive, stadiums. Even though a large economic literature warns about the modest (and possibly negative) effects on the local economy of hosting a professional sports team, the economic effects of professional teams and stadiums remain blurry for the general public, and cities in the United States continue to compete to lure teams with generous public subsidies. This paper integrates several contributions of the literature into one cohesive and simple framework based on cost-benefit analysis and provides estimations of the average local economic effects of teams in the four biggest professional leagues in the United States. If professional sports games do not attract visitors from other cities, or if players and owners do not spend a significant share of their income in the area, hosting a team can severely hurt the local economy.
    Date: 2022–12
  2. By: Gustavo Bergantiños (ECOSOT, Universidade de Vigo); Juan D. Moreno-Ternero (Department of Economics, Universidad Pablo de Olavide)
    Abstract: We study the allocation of revenues raised from the collective sale of broadcasting rights for the Spanish Football League (La Liga), which is strongly regulated by the Spanish government since 2015. The allocation process is decomposed in four dimensions: lower bounds, sport performance, economic performance, and broadcasting performance. For each dimension, we compare the allocation suggested by La Liga with other alternatives grounded on the fair allocation literature. Based on our analysis, we argue that the allocation process implemented by La Liga could be modified in meaningful ways, while still obeying regulation measures.
    Keywords: La Liga, broadcasting rights, sport leagues, resource allocation.
    JEL: D63 Z20
    Date: 2023

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