A Proposal for Incentive-Compatible Revenue Sharing in Major League Baseball

Wenz, Michael

doi:10.1123/jsm.26.6.479

Cited by 8 publications

(5 citation statements)

References 7 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Dietl et al (2009b) argue that homogeneous leagues in which teams adopt one objective (win or profit maximization) should possess revenue sharing, but mixed leagues with varying team objectives should not. Wenz (2012) proposes a payroll tax and revenue-sharing model for Major League Baseball that aligns owner objectives with the league’s goal of competitive balance: if high payroll teams contribute disproportionately to the revenue-sharing pool and successful teams receive high subsidies, the marginal value of wins increases and small-market teams experience greater incentive to invest in talented players.…”

Section: Literature Reviewmentioning

confidence: 99%

The 2011-2021 NBA collective bargaining agreement

Sadler

Sanders

2016

View full text Add to dashboard Cite

Purpose The purpose of this paper is to analyze the 2011 National Basketball Association (NBA) lockout and collective bargaining agreement (CBA). Design/methodology/approach Using a bargaining game model, the authors show that asymmetric information via owner revenue shifting and financial non-disclosure caused the conflict between owners and players (growth of player salaries) to result in a lockout. Findings The bargaining game also demonstrates the lockout to be a rational response to asymmetric information: by restricting the growth of player salaries, owners improved their competitive position. Other factors motivating the lockout include the indirect benefit to the median owner of repressing player salaries (i.e. greater expected competitive balance) and a principal agency problem within the players’ union. The lockout concluded with a ten-year CBA, a mutual opt-out in 2017, and revenue sharing between 49 and 51 percent of basketball-related income. The league salvaged a shortened 2011-2012 season, but created an economic framework more favorable to owners. Originality/value This paper is novel in its analysis of the bargaining aspects of the current NBA collective bargaining agreement.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

The 2011-2021 NBA collective bargaining agreement

Sadler

Sanders

2016

View full text Add to dashboard Cite

show abstract

“…One of the most widespread ideas used to explain equality between competitors is the concept of competitive balance. This concept has frequently been used in the field of sports economics (Schmidt & Berri, 2001;Fort & Maxcy, 2003;Rhoads, 2004;Goossens, 2006) in order to measure the degree of competitiveness of the leagues in a range of sports including baseball (Scully, 1989;Owen, Ryan, & Weatherston, 2007;Wenz, 2012), American football (Humphreys, 2002), basketball (Noll, 1988;Berri et al, 2005), ice hockey (Richardson, 2000), soccer (Halicioglu, 2006) and golf (Rhoads, 2005).…”

Section: Competitive Balancementioning

confidence: 99%

Clustering and Competitive Balance in NBA and ACB Professional Basketball

Guerra¹,

González²,

Manso³

et al. 2016

Apunts

View full text Add to dashboard Cite

Some basketball leagues are more competitive than others. The level of uncertainty in the final standings is closely related to the league's appeal. A team's effectiveness has a reciprocal relationship with the emerging and critical environment: competition. Teams are affected by their surrounding environment. The competitive model directly impacts competition which means that small changes can dramatically alter the outcome. We compared two different sports models to determine the degree of hierarchy in these competitions. We studied the results of two professional basketball leagues: 18 NBA seasons (USA) and 14 ACB seasons (Spain). We found that there are three performance levels in ACB teams (ratio 0.15±0.05; 0.45±0.15; 0.8±0.1). However, NBA data are less scattered and more Gaussian (peak ratio 0.5). General analysis (Shannon entropy) shows that competitive balance is not stable (mean NBA Sn=0.9842 ± 0.0037; mean ACB Sn=0.9793 ± 0.0053). More detailed study (cluster analysis) shows that there are teams in the ACB which are clearly rooted in a particular area of the competition. Most NBA teams have reached the playoffs. There is no consensus in studying competitive balance. We propose using a number of methodologies in order to determine the competitiveness of a given league. The sports model has a significant impact on levels of competitive balance. Both the ACB and the NBA have high competitive balance. The NBA has specific mechanisms to ensure high competitiveness while the ACB does not meet the absence of long-run domination requirement.

show abstract

“…Una de las ideas más difundidas para explicar el fenómeno de la igualdad entre los competidores es el concepto de equilibrio competitivo. Este concepto se ha utilizado con frecuencia en el campo de la economía del deporte (Fort & Maxcy, 2003;Goossens, 2006;Rhoads, 2004;Schmidt & Berri, 2001), con el fin de medir el grado de competitividad de la liga en los diferentes deportes, como el béisbol (Owen, Ryan, & Weatherston, 2007;Scully, 1989;Wenz, 2012), fútbol americano (Humphreys, 2002), baloncesto (Berri et al, 2005;Noll, 1988), hockey hielo (Richardson, 2000), fútbol (Halicioglu, 2006) o golf (Rhoads, 2005).…”

Section: Equilibrio Competitivounclassified

Agrupación y equilibrio competitivo en el baloncesto profesional NBA y ACB

Guerra¹,

González²,

Manso³

et al. 2016

Apunts

View full text Add to dashboard Cite

Resumen Algunas ligas de baloncesto son más competidas que otras. El nivel de incertidumbre en la clasificación final está estrechamente relacionado con el atractivo en la liga. La efectividad de un equipo tiene una relación recíproca con el ambiente emergente y crítico: la competición. Los equipos se ven afectados por el entorno que les rodea. El modelo competitivo influencia directamente sobre la competición, de esta manera pequeños cambios pueden alterar dramáticamente el resultado final. Hemos comparado dos modelos deportivos diferentes para averiguar el nivel de jerarquía de estas competiciones. Hemos estudiado los resultados de dos ligas profesionales de baloncesto: 18 temporadas de la NBA (USA) y 14 de la ACB (España). Observamos que los equipos ACB se encuentran en tres niveles de rendimiento (ratio 0,15 ± 0,05; 0,45 ± 0,15; 0,8 ± 0,1). Pero los datos de la NBA son menos dispersos y más gaussianos (ratio pico 0,5). Un análisis general (Entropía de Shannon) muestra que el equilibrio competitivo no permanece estable (Sn NBA media = 0,9842 ± 0,0037; Sn ACB media = 0,9793 ± 0,0053). Un estudio más detallado (análisis de clúster) muestra que en la ACB hay equipos claramente enraizados en un área particular de la competición. La mayoría de los equipos de la NBA han alcanzado los playoffs. No existe un consenso para el estudio de equilibrio competitivo. Proponemos el uso de varias metodologías con el fin de averiguar el grado de competitividad de una liga determinada. El modelo deportivo influencia altamente en los niveles de equilibrio competitivo. Tanto la ACB y la NBA presentan un alto equilibrio competitivo. La NBA tiene mecanismos específicos para asegurar la alta competitividad y la ACB no cumple con la ausencia de dominación a largo plazo.

show abstract

A Proposal for Incentive-Compatible Revenue Sharing in Major League Baseball

Cited by 8 publications

References 7 publications

The 2011-2021 NBA collective bargaining agreement

The 2011-2021 NBA collective bargaining agreement

Clustering and Competitive Balance in NBA and ACB Professional Basketball

Agrupación y equilibrio competitivo en el baloncesto profesional NBA y ACB

Contact Info

Product

Resources

About