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- W3149012296 abstract "Revenue sharing is a common league policy in professional sports leagues. Several motivations for revenue sharing have been explored in the literature, including supporting small market teams, affecting league parity, suppressing player salaries and improving team profitability. We investigate a different motivation. Risk-averse team owners may be able to increase league welfare by using revenue sharing to reduce the variance and affect the skewness of the league distribution of team local revenues. We first determine the extent to which revenue sharing affects these moments in theory, then we attempt to quantify the effects on league welfare for Major League Baseball. Our results suggest that revenue sharing had significant welfare gains, obtained at little cost, that enhance the positive effects noted by other studies." @default.
- W3149012296 created "2021-04-13" @default.
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- W3149012296 date "2017-01-01" @default.
- W3149012296 modified "2023-09-24" @default.
- W3149012296 title "Risk Diversification from Revenue Sharing in a Professional Sports League: Measuring Welfare Gains" @default.
- W3149012296 hasPublicationYear "2017" @default.
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