In: Economics
1. We have seen that competitive balance is not quite as important to the demand of sports leagues. But let’s say you were charged with improving the balance we see in a league. Given what was learned, what policies would you advocate to accomplish this objective?
2. Why does the NBA have less balance than other major North American sports?
Appropriate measurement of Competitive balance is a cornerstone of the economic analysis of professional sports leagues.Stimulation methods are used to evaluate the effects of changes in season length on the distributions of competitive balance measures for different for different distributions of the strength of teams in a league.
Competitive balance largely does not exist in sports today, and it may not today and it may actually drive audience interest in sports.The research suggest that greater uncertainty can actually reduce attendance.the San Francisco Giants and Boston Red Sox each won the Worlds series three times over the past 11 years.The 50 most watched sports events of 2014 each had more than 21 million viewers .The NFL,NBA and NHL all signed record setting media rights agreements for their leagues in recent years.How ever, the economics also do not suggest that it is competitive balance alone that is driving the leaguer's bottom lines.This could play a large role in many areas of the sports industry.If the NBA has a lockout in 2017,then it its players could claim that the should paid market rates rather than having any forms of salary limits or caps.What role competitive balance takes will be one of the central questions facing the sports industry going into the future.