2004
DOI: 10.1177/1527002503261275
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Owner Objectives and Competitive Balance

Abstract: A growing literature on leagues composed of owners maximizing winning percentage shows that particular league rules have different impacts compared with leagues composed of profit-maximizing owners. But the underlying question of how to distinguish between the two types of leagues has received no treatment. In this article, we show that the two types of leagues can be distinguished in the talent market. A league of winningpercentage-maximizing owners will have higher talent costs and greater demand for talent.… Show more

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Cited by 83 publications
(65 citation statements)
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References 11 publications
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“…Fort and Quirk (2004) find that, relative to a league of profit-maximizing owners, a league of winningpercentage-maximizing owners will have a greater demand for player talent and will spend more to acquire that talent. However, which of the two leagues will have greater competitive balance is indeterminant.…”
Section: Chapter 3 Sports Leagues Vs Their Own Member Teamsmentioning
confidence: 94%
“…Fort and Quirk (2004) find that, relative to a league of profit-maximizing owners, a league of winningpercentage-maximizing owners will have a greater demand for player talent and will spend more to acquire that talent. However, which of the two leagues will have greater competitive balance is indeterminant.…”
Section: Chapter 3 Sports Leagues Vs Their Own Member Teamsmentioning
confidence: 94%
“…The need of some balance on the field is getting more discussed not only for soccer leagues (Grier & Tollison, 1994;Zimbalist, 2002;Fort & Maxcy, 2003;Fort & Quirk, 2004;Michie & Oughton, 2004;Goossens, 2005;Groot 2007;Lee, 2010), but also for other team sports (Kesenne, 2000;Richardson, 2000;Schmidt & Berri, 2001;Humphreys, 2002;Utt & Fort, 2002;DuBois & Heyndels, 2007;Lenten, 2013). A few teams should not be too strong.…”
Section: Introductionmentioning
confidence: 99%
“…7 To illustrate the idea of multisided markets, consider a professional soccer 3 club playing in, for instance, the German premier league (Bundesliga). In sports economics, a long tradition of reasoning views professional sports clubs (like premier league soccer clubs) as resembling profit-maximizing firms (individual clubs) or industries (leagues) (Rottenberg 1956;Hoehn & Szymanski 1999;Fort & Quirk 2004) rather than non-profit (serving the public good) sports clubs (as they often prefer to view themselves; somewhat supported e.g. by Madden 2008).…”
Section: Introductionmentioning
confidence: 99%