Naslov (eng)

The impact of the horizontal distribution of media rights revenues in sports leagues on competitive balance

Autor

Trifunović, Dejan
Ristić, Bojan

Opis (eng)

Abstract: There are two possibilities for sell- ing media rights in sports: either each team sells media rights individually, or the league sells them in a package. In the latter case, teams act as a cartel. This cartel is justified if the individual sale of media rights would make spectators worse off. The negative effect of the cartel is reflected in the higher price of media rights. The positive effect is that small teams can obtain higher revenues than if they sell media rights individually. Thus, the collective sale of media rights enables main- taining a certain level of competitive balance (equal strength of teams) in the league. The European Commission allows the collective sale of media rights at auction if the league sells at least two media rights packages to dif- ferent media houses for a certain number of seasons. Revenues from selling media rights are divided vertically between the monopo- ly sports organisation and teams and hori- zontally between the teams themselves. The horizontal distribution of revenue can be such that teams share revenues equally, based on the historical results or based on the num- ber of fans. These criteria can be combined in the allocation of revenue. In this paper, we will analyse sports leagues with different cri- teria for revenue distribution and determine how they affect competitive balance. The lev- el of competitive balance is measured using the adjusted (unbiased) normalised HHI index. In the leading football leagues, there is no clear relationship between the method of revenue distribution and competitive bal- ance

Jezik

engleski

Datum

2023

Licenca

© All rights reserved

Predmet

KEY WORDS: SPORTS LEAGUES, MEDIA RIGHTS, COMPETITIVE BALANCE

Deo kolekcije (1)

o:28218

Ekonomski fakultet