The optimal size of a sports league

Stefan Kesenne

Working Papers from University of Antwerp, Faculty of Business and Economics

Abstract: In this contribution, we try to investigate, based on a simple theoretical model, what the optimal number of teams in a league is, taking into account the most important determinants of club revenue and fans’ utility. The number of teams fixed by a monopoly league representing the interests of the participating clubs is clearly smaller than the number of teams in the competitive free-entry market equilibrium. We have also tested, using European football data, whether the long-term equilibrium number of teams in the national top divisions has been determined by the market or by the insiders of the monopoly leagues.

Pages: 18 pages
Date: 2008-10
New Economics Papers: this item is included in nep-mic and nep-spo
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Related works:
Journal Article: The Optimal Size of a Sports League (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ant:wpaper:2008017

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