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The effects of broadcast on a team's market and on competitive balance from the perspective of fans maximizing utility
Authors:Hon Foong Cheah
Institution:School of Economics and Management, Shanghai University of Sport, Shanghai, China
Abstract:We examine the decision of fans to attend the game or watch the exact televised match to address whether broadcast lowers revenue collected at the gate and worsens competitive balance. In most cases, broadcasts lower attendance and collection at the gate but do not necessarily worsen competitive balance. Weaker teams can benefit from broadcast revenue and catch up with their stronger counterpart. However, teams that make more money from broadcasts and a broad fan base can gain more advantages from broadcasts and worsen competitive balance.
Keywords:labor market  sports attendance  sports broadrcast
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