Contents

Preface

Acknowledgments

Reading Credits

PART I    Professional Sports

CHAPTER 1    Ownership

PERSONALITIES AND MOTIVATIONS

Hard Ball: The Abuse of Power in Pro Team Sports

James P. Quirk and Rodney D. Fort

Sport as Business

Andrew Zimbalist

The Value of Major League Baseball Ownership

Rodney Fort

ALTERNATIVE MODELS

NFL vs. Sherman Act: How the NFL’s Ban on Public Ownership Violates Federal Antitrust Laws

Genevieve F. E. Birren

A Piece of the Rock (or the Rockets): The Viability of Widespread Public Offerings of Professional Sports Franchises

Ryan Schaffer

TAX CONSIDERATIONS

Tax Revisions of 2004 and Pro Sports Team Ownership

Edward N. Coulson and Rodney Fort

CHAPTER 2    Leagues: Structure and Background

POSITIONING OF SPORTS IN THE U.S. ECONOMY

On the Global Economic Downturn and Sports

Kenneth Shropshire and Scott Rosner

OVERVIEW OF THE PROFESSIONAL MODEL

Home Team

Michael Danielson

AN ALTERNATIVE MODEL

The Economics of Promotion and Relegation in Sports Leagues: The Case of English Football

Roger G. Noll

CHAPTER 3    Global Leagues

OVERVIEW

Local Heroes

The Economist

CRICKET

Cricket in India: Moving into a League of Its Own

India Knowledge@Wharton

Twenty20 Cricket: An Examination of the Critical Success Factors in the Development of Competition

Christopher Hyde and Adrian Pritchard

SOCCER

Arsenal FC Annual Report, 2008

P. D. Hill-Wood, Chairman

PLAYER MARKETS

The Impact of the Flat World on Player Transfers in Major League Baseball

Scott R. Rosner and William T. Conroy

CHAPTER 4    Emerging and Niche Leagues

MLS

Bend It for Beckham: A Look at Major League Soccer and Its Single Entity Defense to Antitrust Liability After the Designated Player Rule

Tim Bezbatchenko

WOMEN’S SOCCER

Could the New Women’s Professional Soccer League Survive in America? How Adopting a Traditional Legal Structure May Save More than Just a Game

Marc Edelman and Elizabeth Masterson

WOMEN’S BASKETBALL

Analyzing the WNBA’s Mandatory Age/Education Policy from a Legal, Cultural, and Ethical Perspective: Women, Men, and the Professional Sports Landscape

Marc Edelman and C. Keith Harrison

XFL

The Inaugural (and Only) Season of the Xtreme Football League: A Case Study in Sports Entertainment

Keith Willoughby and Chad Mancini

MINOR LEAGUE BASEBALL

Called up to the Big Leagues: An Examination of the Factors Affecting the Location of Minor League Baseball Teams

Michael Davis

CHAPTER 5    Revenue Sharing and Competitive Balance

INTRADEPENDENCE: REVENUE SHARING AMONG CLUBS

Keeping Score: The Economics of Big-Time Sports

Richard G. Sheehan

COMPETITIVE BALANCE

Thinking About Competitive Balance

Allen R. Sanderson and John J. Siegfried

REVENUE SHARING IN THE NFL

Revenue Sharing and the Salary Cap in the NFL: Perfecting the Balance Between NFL Socialism and Unrestrained Free-Trade

Clay Moorhead

IMPACT OF REVENUE SHARING ON COMPETITIVE BALANCE

Competitive Balance in Team Sports and the Impact of Revenue Sharing

Stefan Kesenne

CHAPTER 6    Teams

OVERVIEW

The Coming Revenue Revolution in Sports

Jack F. Williams

IMPACT OF STAR PLAYERS ON GATE RECEIPTS

Stars at the Gate: The Impact of Star Power on NBA Gate Revenues

David J. Berri, Martin B. Schmidt, and Stacey L. Brook

Vend It Like Beckham: David Beckham’s Effect on MLS Ticket Sales

Robert Lawson, Kathleen Sheehan, and E. Frank Stephenson

TICKET PRICING

Ticket Prices, Concessions and Attendance at Professional Sporting Events

Dennis Coates and Brad R. Humphreys

Variable Ticket Pricing in Major League Baseball

Daniel A. Rascher, Chad D. McEvoy, Mark S. Nagel, and Matthew T. Brown

MICROPERSPECTIVES

Globalisation and Sports Branding: The Case of Manchester United

John S. Hill and John Vincent

Consolidated Balance Sheets at June 30, 2009 and 2008, and Consolidated Statements of Operations, Consolidated Statements of Members’ Equity (Deficit), and Consolidated Statements of Cash Flows for the Fiscal Years Ended June 30, 2009, 2008 and 2007, Including the Notes Thereto

Forest City Enterprises, Inc., Nets Sports and Entertainment, LLC and Subsidiaries

Nets Sports and Entertainment, LLC and Subsidiaries

CHAPTER 7    Stadiums and Arenas

FINANCING AND ECONOMIC BACKGROUND

The Stadium Game

Martin J. Greenberg

Sports and the City: How to Curb Professional Sports Teams’ Demands for Free Public Stadiums

Marc Edelman

The Name Is the Game in Facility Naming Rights

Martin J. Greenberg and April R. Anderson

Testimony of Brad R. Humphreys, Associate Professor, University of Illinois at Urbana-Champaign, On Public Financing for Construction and Operation of Sports Stadiums and Economic Revitalization and Development in Urban America Before the One Hundred Tenth Congress of the United States House of Representatives, Committee on Oversight and Government Reform Subcommittee on Domestic Policy, Thursday, March 29, 2007

Testimony of Neil Demause, Subcommittee on Domestic Policy, Committee on Oversight and Government Reform, March 29, 2007

CHAPTER 8    Media

OVERVIEW

Panel I: The Future of Sports Television

Ronald A. Cass, Mark Abbott, Irwin Kishner, Brad Ruskin, and Alan Vickery

LEAGUE PERSPECTIVES

The NFL Programming Schedule: A Study of Agenda-Setting

John A. Fortunato

Forecasting the Importance of Media Technology in Sport: The Case of the Televised Ice Hockey Product in Canada

Norm O’Reilly and Ryan Rahinel

REGIONAL SPORTS NETWORKS

Regional Sports Networks, Competition, and the Consumer

Diana Moss

THE FUTURE

The Future of Sports Media

Irving Rein, Philip Kotler, and Ben Shields

CHAPTER 9    Labor Matters: Unions

MICROPERSPECTIVE: THE BASEBALL STORY

The Trend Toward Principled Negotiation in Major League Baseball Collective Bargaining

Andrew P. Hanson

Labor Relations in Major League Baseball

Andrew Zimbalist

MACROPERSPECTIVE

Beyond the Box Score: A Look at Collective Bargaining Agreements in Professional Sports and Their Effect on Competition

Ryan T. Dryer

MICROPERSPECTIVE: THE HOCKEY STORY

The Hockey Lockout of 2004–05

Paul D. Staudohar

CHAPTER 10    Labor Matters: Athlete Compensation

FRAMEWORK

Pay Dirt: The Business of Professional Team Sports

James Quirk and Rodney D. Fort

The Sports Business as a Labor Market Laboratory

Lawrence M. Kahn

SPORTS ANALYTICS

Does One Simply Need to Score to Score?

David J. Berri, Stacey L. Brook, and Martin B. Schmidt

An Economic Evaluation of the Moneyball Hypothesis

Jahn K. Hakes and Raymond D. Sauer

Is the Moneyball Approach Transferable to Complex Invasion Team Sports?

Bill Gerrard

INFLATIONARY SALARY MECHANISMS

Do Firms Have Short Memories?: Evidence from Major League Baseball

Andrew Healy

The National Hockey League and Salary Arbitration: Time for a Line Change

Stephen M. Yoost

DEFLATIONARY SALARY MECHANISMS

The NBA Luxury Tax Model: A Misguided Regulatory Regime

Richard A. Kaplan

GLOBAL FRAMEWORK

Football May Be Ill, But Don’t Blame Bosman

William Duffy

CHAPTER 11    Sports Franchise Valuation

OVERVIEW

The Financial Valuation of Sports Franchises

Mitchell Ziets and David Haber

CREDIT RATINGS

Fitch Ratings—Criteria Report Global Sports Rating Guidelines, May 9, 2007

Chad Lewis, Jessica Soltz Rudd, Laurence Monnier, and Cherian George

DETERMINANTS OF FRANCHISE VALUES

Determinants of Franchise Values in North American Professional Sports Leagues: Evidence from a Hedonic Price Model

Brad Humphreys and Michael Mondello

The Economic Determinants of Professional Sports Franchise Values

Donald L. Alexander and William Kern

THE FUTURE

Professional Sports: The Next Evolution in Value Creation

Jeff Phillips and Jeremy Krasner

PART II    Olympic Sports

CHAPTER 12    Olympics

ORGANIZING COMMITTEE MANAGEMENT

Management of the Olympic Games: The Lessons of Sydney

Jean-Loup Chappelet

ORGANIZING COMMITTEE REVENUE SOURCES

The Financing and Economic Impact of the Olympic Games

Brad R. Humphreys and Andrew Zimbalist

Evolution of Olympic Sponsorship and Its Impact on the Olympic Movement

Chrysostomos Giannoulakis and David Stotlar

PART III    College Sports

CHAPTER 13    History and Structure

HISTORY

A Brief History of the National Collegiate Athletic Association’s Role in Regulating Intercollegiate Athletics

Rodney K. Smith

STRUCTURE

Principles and Practice of Sport Management

Lisa Pike Masteralexis, Carol A. Barr, and Mary A. Hums

Sports Law: Cases and Materials

Ray Yasser, James R. McCurdy, C. Peter Goplerud, and Maureen A. Weston

CHAPTER 14    The NCAA and Conference Affiliation

FINANCIAL OVERVIEW

The Business of College Sports and the High Cost of Winning

Roger C. Noll

Unbound: How a Supreme Court Decision Tore Apart Football Television and Rippled Through 25 Years of College Sports

Jack Copeland

The 2009 NCAA State of the Association Speech, as Delivered by Wallace I. Renfro, NCAA Vice President and Senior Advisor to President Myles Brand, January 15, 2009

Myles Brand

NCAA 2008–2009 Revenue Distribution Plan

National Collegiate Athletic Association and Subsidiaries

CHAPTER 15    Member Institutions

OVERVIEW OF INSTITUTIONAL IMPACT

Intercollegiate Athletics and the American University: A University President’s Perspective

James J. Duderstadt

University of Michigan Department of Athletics Operating Budgets, 2009–2010

Faculty Perceptions of Intercollegiate Athletics Survey, Executive Summary, Prepared for the Knight Commission’s Faculty Summit on Intercollegiate Athletics, Oct. 15, 2007

DIRECT IMPACTS OF INTERCOLLEGIATE ATHLETICS

The Physical Capital Stock Used in Collegiate Athletics

Jonathan M. Orszag and Peter R. Orszag

The Empirical Effects of Collegiate Athletics: An Update to the Interim Report

Jonathan M. Orszag and Peter R. Orszag

INDIRECT IMPACTS OF INTERCOLLEGIATE ATHLETICS

Challenging the Myth: A Review of the Links Among College Athletic Success, Student Quality, and Donations

Robert H. Frank

The Impact of College Sports Success on the Quantity and Quality of Student Applications

Devin G. Pope and Jaren C. Pope

FUNDRAISING

Scoreboards vs. Mortarboards: Major Donor Behavior and Intercollegiate Athletics

Jeffrey L. Stinson and Dennis R. Howard

EMPHASIS ON INTERCOLLEGIATE ATHLETICS

The Impact of Reclassification from Division II to I-AA and from Division I-AA to I-A on NCAA Member Institutions from 1993 to 2003

OPERATIONAL ISSUES

Circumstantial Factors and Institutions’ Outsourcing Decisions on Marketing Operations

Willie J. Burden and Ming Li

TAX ISSUES

Tax Preferences for Collegiate Sports, May 2009

The Congress of the United States, Congressional Budget Office

Sources of Revenue of Athletic Departments

CHAPTER 16    Gender Equity

OPERATIONAL ISSUES

The Growth of NCAA Women’s Rowing: A Financial, Ethical, and Legal Analysis

Scott R. Rosner

LEGAL FRAMEWORK

Clarification of Intercollegiate Athletics Policy Guidance: The Three-Part Test (January 16, 1996)

United States Department of Education, Office for Civil Rights

Letter Clarifying Apportionment of Financial Aid in Intercollegiate Athletics Programs (July 23, 1998)

United States Department of Education, Office for Civil Rights

Further Clarification of Intercollegiate Athletics Policy Guidance Regarding Title IX Compliance

United States Department of Education, Office for Civil Rights

IMPACT ON COACHES

Gender Equity in College Athletics: Women Coaches as a Case Study

Deborah L. Rhode and Christopher J. Walker

CHAPTER 17    Amateurism and Reform

THE IDEAL

Legislation for the Glory of Sport: Amateurism and Compensation

Kenneth L. Shropshire

REFORM

Symposium: Sports Law as a Reflection of Society’s Laws and Values: Pay for Play for College Athletes: Now, More Than Ever

Peter Goplerud III

Advice for the Next Jeremy Bloom: An Elite Athlete’s Guide to NCAA Amateurism Regulations

Christopher A. Callanan

The Game of Life

James L. Shulman and William G. Bowen

A Call to Action: Reconnecting College Sports and Higher Education

Report of the Knight Foundation Commission on Intercollegiate Athletics

Quantitative and Qualitative Research with Football Bowl Subdivision University Presidents on the Costs and Financing of Intercollegiate Athletics: Report of Findings and Implications, October 2009

Knight Commission on Intercollegiate Athletics

PART IV    Sociological Considerations

CHAPTER 18    Race

MANAGERS AND COACHES

Discrimination in Major League Baseball: Hiring Standards for Major League Managers, 1975–1994

Edward Rimer

The Fritz Pollard Alliance, the Rooney Rule, and the Quest to “Level the Playing Field” in the National Football League

N. Jeremi Duru

OWNERS

Diversity, Racism, and Professional Sports Franchise Ownership: Change Must Come from Within

Kenneth L. Shropshire

SALARIES

The Sports Business as a Labor Market Laboratory

Lawrence M. Kahn

EUROPEAN FOOTBALL

The European Union and Fan Racism in European Soccer Stadiums: The Time Has Come for Action

Michael Ryan

CHAPTER 19    Ethics

The Ethical Issues Confronting Managers in the Sport Industry

Mary A. Hums, Carol A. Barr, and Laurie Gullion

The Olympics and the Search for Global Values

John Milton Smith

Doping in Sports: Legal and Ethical Issues: Corruption: Its Impact on Fair Play

Richard H. McLaren

Index

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