The Regulation of Markets for Team Sports

Various aspects of team sports, like the rules governing the transfer of players, the allocation of broadcasting rights, or the integration of leagues with broadcasters have recently been the subject of much attention from a regulatory perspective in the European Union (EU). This monograph discusses the framework in which regulation has often been discussed in the economic literature and the public policy debates. The authors find that the current framework lacks sufficient micro-economic foundations to allow a satisfactory analysis of the appropriate scope for regulation and formulate suggestions for improvement. In particular, the authors argue that the concept of competitive balance, which is essential in most formulations and public policy discussions, does not capture satisfactorily the "thrill" that motivate many spectators and viewers. They suggest that the demand for sports events could be more adequately formulated in terms of characteristics which reflect the expected interactions between the teams. With respect to supply, the authors argue that the link between the inputs contributed by the teams and the actual characteristics of the game should be explicitly specified.