A model of a professional sports league

Rascher, Daniel A.

doi:10.1007/bf02294925

Cited by 39 publications

(63 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Whether clubs oriented toward profit choose to float on a stock exchange or not, this exception is important as it introduces heterogeneity of objectives between clubs within a league. Taking into account this diversity is a major issue as it has potential implications for policy measures (Rascher, 1997;Terrien et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

The win/profit maximization debate: strategic adaptation as the answer?

Terrien

Scelles

Morrow

et al. 2017

SBM

View full text Add to dashboard Cite

Purpose -The purpose of this paper is twofold. First, to highlight the heterogeneity of the organizational aims within the professional football teams in Ligue 1. Second, to understand why some teams swing from a win orientation toward a soft budget constraint from year to year, and vice versa.Design/methodology/approach -Financial data from annual reports for the period 2005/06 -2014/15 was collected for the 35 Ligue 1 clubs. To define the compliance degree of the intended strategy of those clubs, an efficiency analysis was conducted thanks to the data envelopment analysis (DEA) method. This performance measure was supplemented with the identification of productivity and demand shocks to build a theoretical model. It allow to precise nature of the evolution of the win/profit tension in the utility function related to the gap expectation/performance. Findings -The paper suggests that a team can switch from one archetype to another from year to year due to the stochastic nature of the sport industry. The club director's utility function could also be maximized under an intertemporal budget function to adjust the weight between win and profit according to the opportunities in the environment.Originality/value -The paper shed new light on the win/profit maximization. The theoretical model provides an assessment of the weight between win and profit in Ligue 1 and then points a new explanation for persistent losses in the sport industry.

show abstract

Section: Introductionmentioning

confidence: 99%

The win/profit maximization debate: strategic adaptation as the answer?

Terrien

Scelles

Morrow

et al. 2017

SBM

View full text Add to dashboard Cite

show abstract

“…Guzmán and Morrow, 2007;Plumley, Wilson, and Ramchandani, 2017;Plumley, Wilson, and Shibli, 2017;Rascher, 1997;Szymanski and Kuypers, 1999). Whilst the majority of authors researching this field agree that on-field and off-field are indeed linked, there is still a lack of convergence in relation to two main factors; first, the presence of a cause and effect relationship between the two and, second, which variables should be used for analysis when measuring performance.…”

Section: Performance Measurement In Professional Team Sportsmentioning

confidence: 99%

Guest editorial: performance strategies for meeting multiple objectives

Wilson

Anagnostopoulos

2017

SBM

View full text Add to dashboard Cite

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.

show abstract

“…If teams maximize profits and fans only care about the relative quality of the team, then revenue sharing in which revenue is shifted from high revenue teams to low revenue teams will not improve competitive balance (for example, see Rottenberg (1956), El-Hodiri and Quirk (1971), Rascher (1997), and Fort and Quirk (1995)). If teams maximize profits but fans care about the relative and absolute quality of a given team, then revenue sharing can improve competitive balance (Marburger, 1997).…”

Section: Introductionmentioning

confidence: 99%

“…If teams maximize profits but fans care about the relative and absolute quality of a given team, then revenue sharing can improve competitive balance (Marburger, 1997). Furthermore, if teams maximize utility (for example, a team owner receives consumption value through the quality of the team), then revenue sharing can improve competitive balance (Rascher (1997) and Késenne (2000)). Consequently, the impact of revenue sharing on competitive balance depends on the objectives of teams and the factors that matter to fans.…”

Section: Introductionmentioning

confidence: 99%

Revenue Sharing in Sports Leagues

Miller

2007

Journal of Sports Economics

View full text Add to dashboard Cite

This paper uses a three-stage model of non-cooperative and cooperative bargaining in a free agent market to analyze the effect of revenue sharing on the decision of teams to sign a free agent. We argue that in all subgame perfect Nash equilibria, the team with the highest reservation price will get the player. We argue that revenue sharing will not alter the outcome of the game unless the proportion taken from high revenue teams is sufficiently high. We also argue that a revenue sharing system that rewards quality low-revenue teams can alter the outcome of the game while requiring a lower proportion to be taken from high revenue teams. We also argue that the revenue sharing systems can improve competitive balance by redistributing pivotal marginal players among teams. JEL Classification Codes: C7, J3, J4, L83

show abstract

A model of a professional sports league

Cited by 39 publications

References 0 publications

The win/profit maximization debate: strategic adaptation as the answer?

The win/profit maximization debate: strategic adaptation as the answer?

Guest editorial: performance strategies for meeting multiple objectives

Revenue Sharing in Sports Leagues

Contact Info

Product

Resources

About