Optimal gate revenue sharing in sports leagues

نویسندگان

  • Thomas Peeters
  • Jan Bouckaert
  • Mathias Reynaert
  • Stefan Szymanski
چکیده

Sports leagues constitute one of the few examples of legally operating cartels. In this paper I examine how gate revenue sharing may serve to coordinate talent investments within these cartels. I show that sharing revenues has the potential to raise cartel profits, because it decreases the incentive to invest in playing talent. Leagues consisting of teams with heterogeneous local markets should share less revenues to maximize profits, whereas homogeneous teams should share more. JEL Classification Codes: L41, L83

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تاریخ انتشار 2011