Revenue Sharing with Heterogeneous Investments in Sports Leagues_ Share Media, Not Stadiums英文文献资料.pdf

Rev Ind Organ (2014) 45:1–19 DOI 10.1007/s11151-014-9423-2 Revenue Sharing with Heterogeneous Investments in Sports Leagues: Share Media, Not Stadiums Steven Salaga · Alan Ostfield · Jason A. Winfree Published online: 22 May 2014 © Springer Science+Business Media New York 2014 Abstract This study examines revenue sharing in sports leagues where franchises engage in multiple types of investments. Previous literature typically treats revenues and investments as homogeneous, but we add to the literature by differentiating between investment types and revenue sources. This is important because investment in talent leads to winning, which is a zero-sum game for the league and therefore owners have an incentive to limit talent investment. However, other investments, such as stadiums, are not a zero-sum game, and therefore the implications of revenue shar- ing are different for the league. We provide sufficient conditions under which it is more efficient to share media revenue compared to stadium revenue. We conclude by providing applications of this model. Keywords Sports leagues · Investment · Revenue sharing JEL Classification L83 S. Salaga ( ) B Department of Health and Kinesiology, Texas AM University, 4342 TAMU, College Station, TX 77843, USA e-mail: ssalaga@ A. Ostfield Live Nation - North Atlantic, 220 West 42nd Street, New York, NY 10036, USA e-mail: alanostfield@ J. A. Winfree Department of Agricultural Economics, University of Idaho, 875 Perimeter Drive MS 2334, Moscow, ID 83844-2334, USA e-mail: jwinfree@ 123 2 S. Salaga et al. 1 Introduction Like many industries, firms or teams in professional sport have a variety of revenue sources and investment options. Some investments are clearly designed to increase specific rev