Fan welfare maximization as a club objective in a professional sports league

Paul Madden

European Economic Review, 2012, vol. 56, issue 3, 560-578

Abstract: Motivated by aspects of European soccer club governance (members' clubs supporters' trusts), a first formal analysis of fan welfare maximization as a club objective in a sports league is provided, with comparisons to objectives studied previously (profit and win maximization). Positive comparisons focus on team qualities, ticket prices, attendances and the impact of capacity crowds; empirically observed ticket black markets and inelastic pricing are consistent only with fan welfare maximization. Normatively, social welfare (aggregate league surplus) is well-served by a league of fan welfare maximizers, or sometimes win maximizers, but not profit maximizers; leagues should not normally make profits.

Keywords: Fan welfare maximization; Aggregate surplus; Sports league (search for similar items in EconPapers)
JEL-codes: L10 L83 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:56:y:2012:i:3:p:560-578

DOI: 10.1016/j.euroecorev.2011.12.006

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