Competitive Balance and Revenue Sharing

Stefan KÉsenne
Authors registered in the RePEc Author Service: Stefan Kesenne

Journal of Sports Economics, 2004, vol. 5, issue 2, 206-212

Abstract: In this article, a distinction is made between two types of competitive imbalances, the good and the bad ones. Because it is mainly the bad type of competitive imbalance that worries us most, that is, the large-market clubs dominating the small-market clubs, it can be shown that the competitive balance in a win-maximizing league is always worse than in a profit-maximizing league. Also, revenue sharing that aims to cure the good type of imbalance, that is, a small-market club dominating the league, might not have the desirable effect if the criterion for sharing is the budget of the clubs.

Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:sae:jospec:v:5:y:2004:i:2:p:206-212

DOI: 10.1177/1527002503257209

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