Revenue Sharing in European Football Leagues: A Theoretical Analysis

Bodil Olai Hansen, Mich Tvede

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Abstrakt

In the present chapter, a general model of competition between clubs in sports leagues with flexible supply of inputs is studied. There are externalities between clubs because it takes more than one club to produce games and tournaments. It is assumed that the externalities take the form of complementarities. Firstly, it is shown that revenue sharing leads to lower overall quality of sports leagues. Secondly, it is shown that the optimal quality for the league is lower (higher) than the quality in a league without revenue sharing in case of negative (positive) externalities between clubs. Thirdly an example is used to illustrate the findings.
OriginalsprogEngelsk
TitelTrends in Mathematical Economics : Dialogues Between Southern Europe and Latin America
RedaktørerAlberto A. Pinto, Elvio Accinelli Gamba, Athanasios N. Yannacopoulos, Carlos Hervés-Beloso
Antal sider18
Udgivelses stedCham
ForlagSpringer Science+Business Media
Publikationsdato2016
Sider245-262
Kapitel12
ISBN (Trykt)9783319325415
ISBN (Elektronisk)9783319325439
DOI
StatusUdgivet - 2016

Emneord

  • Complementarity
  • Revenue sharing
  • Sports leagues
  • Supermodularity
  • Competition in sports leagues
  • European vs. American sports leagues
  • Level of talent
  • Profit maximization

Citationsformater

Olai Hansen, B., & Tvede, M. (2016). Revenue Sharing in European Football Leagues: A Theoretical Analysis. I A. A. Pinto, E. A. Gamba, A. N. Yannacopoulos, & C. Hervés-Beloso (red.), Trends in Mathematical Economics: Dialogues Between Southern Europe and Latin America (s. 245-262). Cham: Springer Science+Business Media. https://doi.org/10.1007/978-3-319-32543-9_12