INTRO TO SPORTS ECON

1. INTRO TO SPORTS ECON • What is Sports Economics? • Why Sports Econ? Why now? • Branches of Sports Economics • Emerging topics in sports economics

2. Sports Econ. • Economics is the study of allocating scarce resources among competing human wants. • Sports economics then is the study of allocating scarce resources among competing wants in the context of sports. • EX: Competitive Balance in the NFL, MLB etc.

3. What qualifies as a Sport? • This begs the question what is a sport? • As defined by TV coverage? (NFL Vs. Timber-sports, World’s Strongest Man/Woman) • Sports as defined by physical exertion, competitive situations? (American Gladiators) • What about recreational sports like fishing, hunting, mountain biking etc.

4. Why Sports Econ.? Why now? • The coincidence of several factors has led to the rapid emergence of this exciting field. • Eminent scholars (who also happen to be sports fans) looking for new challenges. • The availability of sports data. • Journal of Sports Economics & The Economics of Sport • Public visibility such as stadium funding • Student interest & compatibility with student research.

5. Branches of Sports Econ. • Various branches of sports economics have sprung up around the areas of expertise of the scholars that have founded the discipline. For example: • Labor economists who turned their attention to sports studied the determinants of wages in various sports. • I.O. economists studied issues of competitive balance in various sports. • Environmental economists have used CVM to value Sports Teams as a public good.

6. Branches of Sports Econ. Theory of the Firm, Industrial Organization & Sports • Theory of the Firm • Do sports franchises & TV networks maximize profit? • The decision to buy, sell or move a team • Monopoly & Antitrust issues • Are the NFL, NCAA etc. monopolies/cartels? • Is that economically efficient? • Competitive Balance & the health of leagues • Why is the NFL more competitive than MLB? • Formation &decline of leagues • NFL Vs. XFL

7. Branches of Sports Econ. Public Finance, Regional Econ. & Sports • Who pays for the stadium? • Taxes Vs. Bonds • Benefits of a team to the host city. • Impact studies: Corporate Vs. Academic • Team Sale/Relocation • Game with multiple rounds

8. Branches of Sports Econ. Labor Economics of Sports • Unions, strikes & negotiations. (Game Theory?) • Determinants of Wages • Economics of Discrimination • Hiring& firing team managers, coaches etc. • Contracts, incentives & performance

9. Branches of Sports Econ. Consumer Theory & Sports Economics The Demand for Leisure: • Determinants of Game day attendance • Determinants of TV ratings • Participation in recreational sports such as IM soccer, flag football, golf, winter sports, outdoor activities (fishing, hunting, hiking etc.)

10. Branches of Sports Econ. Economics of Risk & Uncertainty • Evaluating player & coaching talent • Purchase & sale of teams with “old” stadiums

11. Branches of Sports Econ. Amateur Sports • NCAA • Olympics

12. Emerging Branches of Sports Econ. • Econometrics/Stats. of winning strategies • Sports & Exercise as a habit/addiction • Sports & alcohol, performance substances • Sports & Gambling • Sports & Domestic Violence • TV Ratings & sports • NASCAR, PRCA, WNBA, MLS • Recreational youth sports