Sports Economics Chapter 3.
1 Suppose that you are the owner of a professional baseball team in
a major city, and MLB allows a second team to locate in your city. Describe and show using a graph the potential impact on your attendance.
2 Draw a graph that shows the demand for attendance at a given game at an NFL stadium. Show how this demand would be affected if:
a. The prices of parking and food at the games increase.
b. Televised games switch from free TV to pay-per-view only.
c. A new league forms with a team that plays nearby.
d. The quality of the team decreases dramatically.
e. The length of the season is increased.
3 True or false; explain your answer: "If all teams are of equal quality, it doesn't matter whether they share gate receipts—revenue will remain unchanged."
4 Some researchers argue that revenue sharing is like socialism in that it removes the incentive to outperform rivals. Do you agree with this statement? Why or why not?
7 How can it be that the weakest teams in the National League from a wins/losses perspective are among the most profitable?
9 Why might a league favor a single-entity ownership model? Explain the differences in the risks and rewards of such a system compared to a franchise