The Economics of Sport An International Perspective

by Sandy, Robert; Sloane, Peter; Rosentraub, Mark

• ISBN13: 9780333792711
• ISBN10: 0333792718
• Format: Hardcover
• Copyright: 2004-05-07
• Publisher: Red Globe Pr

Summary

This text, by three distinguished authors, applies the theories and techniques of economic analysis to sport and topics related to the business of sport. It builds on a basis of introductory microeconomics and continues the discussion, generally at an intermediate standard. The text has an international perspective, primarily the US, Canada, Europe and Australia, and contains relevant and entertaining case studies. The text suits both undergraduate and postgraduate students in that while it provides a clear progression of topics throughout, it also incorporates optional sections in each chapters of a higher and more challenging level.

Author Biography

Robert Sandy is an Associate Professor of Economics in the Department of Economics at Indiana University Purdue University Indianapolis (IUPUI).

Peter Sloane is a Professor of Economics at the University of Swansea.

Mark Rosentraub is a Professor and Dean at Maxine Goodman Levin College of Urban Affairs, Cleveland State University.

Table of Contents

List of boxes, tables and figures	ix
Acknowledgements	xii
Preface	xiii
List of abbreviations	xv
1 Introduction	1	(9)
2 Club and league objectives: profit versus utility maximization	10	(18)
Chapter goals	11	(1)
Are the motives of team owners and leagues important?	11	(1)
North America versus Europe	12	(3)
What is profit maximization and what is utility maximization?	15	(3)
The Scully model of profit maximization	18	(2)
The Sloane model of utility maximization	20	(2)
Constraints on utility maximization: publicly-traded clubs	22	(2)
Testing the models of individual owner behavior	24	(1)
League motives	25	(1)
Conclusions	26	(2)
3 Demand and pricing	28	(36)
Chapter goals	29	(1)
The determinants of demand for sporting events	29	(12)
Pricing good and bad seats for a single event	41	(12)
Pricing season tickets	53	(6)
Conclusions	59	(5)
4 The labor market for players	64	(40)
Chapter goals	65	(1)
Introduction	65	(1)
The supply of and the demand for professional athletes	66	(9)
Collective bargaining in professional sports	75	(2)
Competitive restrictions in sporting labor markets	77	(8)
Scully's model of salary determination for starters and backups	85	(6)
Revenue sharing and salary caps as mechanisms for achieving uncertainty of outcome	91	(7)
Conclusions	98	(6)
5 Discrimination in professional sports	104	(23)
Chapter goals	105	(1)
Introduction	105	(1)
What is discrimination?	106	(4)
Measuring discrimination	110	(3)
Evidence of discrimination in professional team sports	113	(10)
Public responses to discrimination: Title IX antidiscrimination legislation in the USA	123	(1)
Conclusions	124	(3)
6 The economic implications of sports broadcasting	127	(28)
Chapter goals	128	(1)
Introduction	128	(4)
The growth of sports broadcasting	132	(3)
The effects of sports broadcasting on live attendance	135	(2)
Sports broadcasting and competitive balance	137	(3)
Public policy and sports broadcasting	140	(9)
Conclusions	149	(2)
Appendix 6.1: Listed UK sporting events	151	(1)
Appendix 6.2: List of services meeting the 'qualifying conditions' as set out in the television regulations, 2000	152	(1)
Appendix 6.3: Events designated in other EU states under Article 3a of the Broadcasting Directive	152	(1)
Appendix 6.4: Listed British soccer clubs 1999/2000	153	(1)
Appendix 6.5: Media interests in British soccer clubs (1999/2000)	154	(1)
7 Sports teams and leagues: from a business necessity to dominating cartels	155	(31)
Chapter goals	156	(1)
Introduction	156	(1)
Why are leagues, associations and organizing committees needed?	157	(3)
From stability to market control	160	(12)
Implications of the North American framework for managing sports	172	(3)
Leagues and the management model in the UK	175	(2)
Revenue-sharing, leagues and competitive balance	177	(5)
Summary and conclusions	182	(4)
8 Sports and economic development	186	(29)
Chapter goals	187	(1)
Introduction	187	(1)
Defining terms: talking a common language when discussing the economic gains from sport	188	(5)
Moving economic activity to achieve policy goals	193	(2)
Sports and economic development: regions and cities	195	(8)
Evaluating the success of a city's sports strategy: moving economic activity or enhancing total welfare?	203	(1)
Sport and the choice of different locations for business	204	(1)
Sport and downtown development: experience elsewhere	205	(3)
Teams, sport and total welfare: conclusions	208	(1)
The intangible benefits	209	(3)
Sport and development: what is possible?	212	(3)
9 Financing the facilities used by professional sports teams	215	(26)
Chapter goals	216	(1)
Introduction	216	(2)
The private and public goods aspects of sports facilities	218	(4)
The building boom in sports facilities: why, and how large?	222	(3)
Factors influencing financing plans for sports facilities	225	(5)
Theory into practice: public sector financing of sports facilities	230	(9)
Conclusions	239	(2)
10 Nonteam sports and incentives	241	(16)
Chapter goals	242	(1)
Introduction	242	(4)
Product markets in nonteam sports	246	(2)
Labor markets in non-team sports	248	(7)
Conclusions	255	(2)
11 College sports in the USA and the role of the NCAA	257	(28)
Chapter goals	258	(1)
Why are intercollegiate sports so big?	258	(5)
Is the NCAA a cartel?	263	(4)
Do colleges make or lose money on their sports programs?	267	(11)
Competitive balance in intercollegiate sports	278	(3)
Conclusions	281	(4)
12 Government and sports policy	285	(20)
Chapter goals	286	(1)
Introduction	286	(2)
Amateur sport	288	(4)
Sporting infrastructure and international sporting events	292	(4)
Antitrust and public policy	296	(5)
Conclusions	301	(4)
Glossary of terms	305	(5)
Bibliography	310	(31)
Index	341