Professional sport leagues' payroll mechanisms and their effect on competitive balance

2021 ◽  
Author(s):  
Aaron Haddad
2020 ◽  
Vol 15 (45) ◽  

Elite professional sport leagues are a global social-economical phenomenon. The fact that only few leagues achieve the elite category does not occur by chance. Four leagues from North America and five are European (NFL, MLB, NHL, NBA, EPL, Bundesliga, LaLiga, Serie A y Ligue 1) were evaluated. In order to demonstrate that are these leagues, and no other, the most significant ones, we have utilised non-linear methodologies (Power Laws, Entropy and probability of success) which allow us to go deep in the aspects that we understand as the most relevant ones: access to economic resources, competitive format, and competitive balance. All these nine leagues have access to more economical resources (Total Revenue: €45.712 M mill/season 2015) than the rest of the leagues in the world, constitute huge social transcendence, accumulate the best players worldwide and their components are confronted under different competition formats (closed or open leagues), but are highly competitive (Normalised Entropy: 0.976-0.998 – Performance Differential: 0.0159-0.0611). We can affirm that the main professional sport leagues present specific profiles, compared to the rest of the leagues in the world. The availability of economical resources, the competition format, and the uncertainty related to the match and league results are the factors that determine if a professional sport leagues can obtain global relevance, attracting millions of supporters worldwide and significant economical resources.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Henry E.T. Wetherall ◽  
Mark F. Stewart ◽  
Trong Anh Trinh

PurposeCompetitive balance is critical for the survival of athletic leagues. A relationship between “uncertainty of outcome” and fan interest has been found in many sports all over the world. This paper examines competitive balance in professional netball in Australia and New Zealand by contrasting two competitions: the ANZ Championship, an elite Australasian competition that began in 2008 but was disbanded in 2016 as there was a perception of dominance by the Australian teams over their New Zealand rivals; and its Australian domestic replacement, Suncorp Super Netball, which started in 2017.Design/methodology/approachCompetitive balance is gauged in three broad ways: match result concentration, which looks at the evenness of each season; team dominance, where comparisons are made across several seasons; and within game equality, which examines the results of individual games.FindingsSeveral methods are used under each heading, with the results surprisingly showing that measured competitive balance was similar in the two competitions.Originality/valueIn sports management, quantitative analysis or sports economics, there are few published papers on netball. This is the first research to examine competitive balance in netball, and the findings have important ramifications for this women-only game, as it competes against other purveyors of professional sport.


2011 ◽  
Vol 25 (5) ◽  
pp. 373-390 ◽  
Author(s):  
Daniel A. Rascher ◽  
Mark S. Nagel ◽  
Matthew T. Brown ◽  
Chad D. McEvoy

A fundamental belief in professional sport leagues is that competitive balance is needed to maximize demand and revenues; therefore, leagues have created policies attempting to attain proper competitive balance. Further, research posits that objectives of professional sport teams’ owners include some combination of winning and profit maximization. Although the pursuit of wins is a zero sum game, revenue generation and potential profit making is not. This article focuses upon the National Football League’s potential unintended consequences of creating the incentive for some teams to free ride on the rest of the league’s talent and brand. It examines whether an owner’s objectives to generate increased revenues and profits are potentially enhanced by operating as a continual low-cost provider while making money from the shared revenues and brand value of the league. The present evidence indicates that, overall, being a low-cost provider is more profitable than increasing player salaries in an attempt to win additional games.


2021 ◽  
Vol 103 (5) ◽  
Author(s):  
R. Masoumi ◽  
F. Oloomi ◽  
A. Kargaran ◽  
A. Hosseiny ◽  
G. R. Jafari

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