Title
TV revenue sharing as a coordination device in sports TV revenue sharing as a coordination device in sports
Author
Faculty/Department
Faculty of Applied Economics
Publication type
report
Publication
Antwerp :UA, [*]
Subject
Economics
Source (series)
Research paper / UA, Faculty of Applied Economics ; 2010:5
Volume/pages
26 p.,
Carrier
E
Target language
English (eng)
Affiliation
University of Antwerp
Abstract
As sports clubs jointly produce contests, they cannot determine contest quality through their private talent investments. Sports leagues therefore try to coordinate talent investments to- wards the pro…t-maximizing contest quality. In this paper I analyze how revenue sharing mech- anisms may serve this goal when demand comes from hard-core club and neutral sports fans. Performance-based sharing turns out to be an ine¢ cient sharing rule for the cartel, although it is not harmful for social welfare. This ine¢ cient cartel behavior can be rationalized as the re- sult of bargaining with asymmetric outside options. Data from US and European sports leagues illustrate the theoretical …ndings.
Full text (open access)
https://repository.uantwerpen.be/docman/irua/32d838/31f6b939.pdf
Handle