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Journal of Sports Economics
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A Note on Revenue Sharing in Sports Leagues

Matthias Kräkel

University of Bonn

The author discusses the optimal sharing of broadcasting revenues given a central marketing system. A league's sports association wants to maximize the joint profits of the sports clubs' owners. The results show that a winner-take-all scheme should be used if the teams are homogeneous. However, if teams are sufficiently heterogeneous, equal sharing will be optimal.

Key Words: broadcasting revenues • equal sharing • sports leagues • revenue sharing • winner-take-all scheme

Journal of Sports Economics, Vol. 8, No. 3, 309-316 (2007)
DOI: 10.1177/1527002506287664
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