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

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.

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.

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.

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.

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

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

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

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.)

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

Branches of Sports Econ. Amateur Sports NCAA Olympics

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