2006
DOI: 10.1123/jsm.20.3.345
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The Impact of Free Agency on Competitive Balance in North American Professional Team Sports Leagues

Abstract: Free agency was reintroduced to professional team sport leagues in the 1970s. Sport enthusiasts expressed concern that competitive balance would diminish as star players congregated to large market cities. However, the economic invariance principle rejects this notion, indicating that balance should remain unchanged. This article empirically examines the effects of changes in free agent rules on competitive balance over time in the National Basketball Association (NBA), National Football League (NFL), and Nati… Show more

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Cited by 55 publications
(39 citation statements)
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“…A usual alternative to the Kendall's τ is the Spearman's rho correlation coefficient for ranked data (Daly and Moore 1981;Maxcy 2002;Maxcy and Mondello 2006). This coefficient is simply the Pearson correlation between the ranks of two subsequent seasons.…”
Section: Spearman's Rhomentioning
confidence: 98%
“…A usual alternative to the Kendall's τ is the Spearman's rho correlation coefficient for ranked data (Daly and Moore 1981;Maxcy 2002;Maxcy and Mondello 2006). This coefficient is simply the Pearson correlation between the ranks of two subsequent seasons.…”
Section: Spearman's Rhomentioning
confidence: 98%
“…1 According to Maxcy and Mondello (2006), "Sport enthusiasts expressed concern that competitive balance would diminish as star players congregated to large market cities. However, the economic invariance principle rejects this notion, indicating that balance should remain unchanged" (p.345).…”
Section: Mondello 2006)mentioning
confidence: 99%
“…The former directly incorporates measures of outcome uncertainty into models of consumer demand for sports and test whether variation in uncertainty of outcome has a positive functional relationship with consumer demand. The latter evaluates policy changes presumed to affect the distribution of talent across teams in a league-for example, the many tests of the invariance principal through comparisons of competitive balance before and after free agency was introduced to professional sports leagues (e.g., Daly and Moore, 1981;Maxcy and Mondello, 2006). There is also a significant literature that considers the effects of policy changes on game or competition outcomes.…”
Section: Literature Review/rationalementioning
confidence: 98%