
Contents
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Issues Issues
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The Pro Sports Team Business Model The Pro Sports Team Business Model
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The Pro Sports League Business Model The Pro Sports League Business Model
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Approaches Approaches
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Allocative Economics Allocative Economics
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Corporate Finance Corporate Finance
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Strategic Management Strategic Management
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Radical Political Economy Radical Political Economy
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Debates Debates
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Debate 1: The Objectives of Team Owners Debate 1: The Objectives of Team Owners
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Debate 2: League Regulation Debate 2: League Regulation
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Debate 3: Innovation and the Moneyball Story Debate 3: Innovation and the Moneyball Story
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Conclusion Conclusion
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References References
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17 Sport, Economics, and Finance
Get accessBill Gerrard is a professor of business management at Leeds University Business School. He has published academic papers on the methodology of economics, Keynesian economics, sports economics, and sport management. His sports-based research has included the soccer players’ transfer market, measuring team quality, coaching efficiency, stadium naming rights, the sporting and financial performance of pro sports teams, and the importance of shared team experience. He is a former editor of the European Sport Management Quarterly. His principal focus in recent years has been developing data analysis as an evidence-based approach to coaching in soccer and rugby union.
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Published:21 September 2022
Cite
Abstract
This chapter focuses on the economics and finance of professional team sports. The business models of individual pro sports teams and pro sports leagues are considered, and the key issues of the sporting and financial viability of teams and leagues are discussed. Four approaches to studying the business of professional team sports are identified: allocative (i.e., mainstream) economics, corporate finance, strategic management, and radical political economy. It is argued that only the radical political economy approach sets the business of sport in its social, cultural, and historical contexts, but this approach has had a very limited influence within the sports economics literature. The chapter then considers three ongoing debates in sports economics: the motivation of team owners, the role of league regulation, and innovation and the Moneyball story.
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