PROGRESSIVE TAXATION AS A MEANS FOR IMPROVING COMPETITIVE BALANCE

Tsjalle Van Der Burg and Aloys Prinz

Scottish Journal of Political Economy, 2005, vol. 52, issue 1, 65-74

Abstract: The existing instruments for improving the competitive balance within a sports league, such as revenue sharing, restrictions on free agency and salary caps, all have their shortcomings. In this paper, we show that a progressive sports tax, the revenues of which are not redistributed to smaller teams in the league, could be a better instrument. From the broader perspective of the theory of optimum taxation, this instrument may have advantages as well.

Date: 2005
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