Competitive balance and gate revenue sharing in team sports
Faculty of Applied Economics
Antwerp , 2003
Research paper / UA, Faculty of Applied Economics UFSIA-RUCA ; 2003:3
University of Antwerp
This paper shows that under reasonable conditions that increasing gate revenue sharing among teams in a sports league will produce a more uneven contest, i.e. reduce competitive balance. This result has significant implications for antitrust authorities and legislators, who have tended to assume that revenue sharing arrangements will necessarily promote competitive balance.