Optimal gate revenue sharing in sports leagues

Thomas Peeters

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

Abstract: Sports leagues constitute one of the few examples of legally operating cartels. In this paper I examine how gate revenue sharing may serve to coordinate talent investments within these cartels. I show that sharing revenues has the potential to raise cartel profits, because it decreases the incentive to invest in playing talent. Leagues consisting of teams with heterogeneous local markets should share less revenues to maximize profits, whereas homogeneous teams should share more.

Keywords: Cartel behavior; Revenue sharing; Sports leagues (search for similar items in EconPapers)
JEL-codes: L41 L83 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2011-10
New Economics Papers: this item is included in nep-spo
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https://repository.uantwerpen.be/docman/irua/acdd54/d2c7beaf.pdf (application/pdf)

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Working Paper: Optimal gate revenue sharing in sports leagues (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ant:wpaper:2011015

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