Title
The impact of pooling and sharing broadcast rights in professional team sports The impact of pooling and sharing broadcast rights in professional team sports
Author
Faculty/Department
Faculty of Applied Economics
Publication type
report
Publication
Antwerp :UA, [*]
Source (series)
Research paper / UA, Faculty of Applied Economics , 2008:9
Volume/pages
14 p.,
Carrier
E
Target language
English (eng)
Affiliation
University of Antwerp
Abstract
In this theoretical analysis, we try to find out what the implications are of pooling and sharing broadcast rights in a sports league. We concentrate on the impact on talent demand, competitive balance and ticket price, using a simplified 2-club non-cooperative Nash equilibrium model with the hiring of talent as the only decision variable, as well as a more general competitive equilibrium model with a large number of teams in the league and with talent hiring and ticket price as decision variables. The main conclusion is that the case for pooling and sharing broadcast rights is not very strong if clubs are profit maximisers. Decentralised selling and performance-based distribution of the rights seems to be the most promising scenario to improve the competitive balance. If clubs are win maximisers, the sharing of broadcast money always improve the competitive balance, but the monopolisation of the broadcast rights by the league is not necessary for sharing.
Full text (open access)
https://repository.uantwerpen.be/docman/irua/9613b8/cd29abe1.pdf
Handle