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Journal of Sports Economics
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Notes

Revenue Sharing and Competitive Balance

Does the Invariance Proposition Hold?

Stefan Késenne

University of Antwerp

This short article, challenging the so-called invariance proposition, argues that, for a general n-team model with profit-maximizing clubs and concave revenue functions, there are reasons to believe that revenue sharing can worsen the competitive balance among teams in a professional sports league. If clubs are win maximizers, revenue sharing improves the competitive balance.

Key Words: sports economics • professional team sports • competitive balance • revenue sharing • invariance principle

Journal of Sports Economics, Vol. 6, No. 1, 98-106 (2005)
DOI: 10.1177/1527002503259334
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