THE ECONOMIC CONSEQUENCES OF FOREIGNER RULES IN NATIONAL SPORTS LEAGUES

Markus Lang, Alexander Rathke and Marco Runkel ()

Region et Developpement, 2010, vol. 31, 47-64

Abstract: Profitable and balanced domestic league sports are among the central prerequisites for attracting the right to host a mega-event like the soccer world cup as well as for the overall economic success of such events. This paper provides a contest model of a professional team sports league and analyzes the impact of a restriction on foreign players. It shows that a league with binding restrictions on foreign talent for all clubs is more balanced than a league without binding restrictions on foreign talent. Moreover, the wage level of domestic (foreign) talent is higher (lower) in a league with a binding restriction on foreign players. Finally, a tighter restriction on foreign players increases profits of all clubs.

Keywords: TEAM SPORTS LEAGUES; COMPETITIVE BALANCE; PLAYER SALARIES (search for similar items in EconPapers)
JEL-codes: L83 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: The Economic Consequences of Foreigner Rules in National Sports Leagues (2009)
Working Paper: The Economic Consequences of Foreigner Rules in National Sports Leagues (2009)
Working Paper: The Economic Consequences of Foreigner Rules in National Sports Leagues (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:tou:journl:v:31:y:2010:p:47-64

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