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International Sports League Comparisons

Helmut Dietl, Rodney Fort () and Markus Lang ()
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Rodney Fort: Institute for Strategy and Business Economics, University of Zurich

No 42, Working Papers from University of Zurich, Center for Research in Sports Administration (CRSA)

Abstract: Comparisons between European and North American sports leagues have occurred over the years. In this paper, we attempt to bring these comparisons down to the essential elements -what has come to be called Rottenberg's (1956) invariance principle and theoretical insights into attempts to alter competitive balance using revenue sharing, talent drafts, and payroll caps. We also examine player reserve systems (the reserve clause in North American leagues and transfer restrictions in European leagues) and differences in objective functions (North American leagues are treated under profit maximization while European leagues are treated under utility maximization and win maximization). The focus is on model predictions compared to actual outcomes, and any differences between North America and Europe.

Keywords: Sports league; invariance principle; revenue sharing; talent draft; payroll cap (search for similar items in EconPapers)
JEL-codes: L83 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2011-03
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