Subject Index

Cambridge University Press 978-0-521-87661-2 - Sports Economics Roger D. Blair Index More information

Subject Index

Abbot Nutrition, 274 Antiscalping laws, 112–113 Adu, Freddy, 478–479 Antitrust policy.SeealsoMonopoly models Advertising, promotion American Football League v. National demand function, 118 Football League, 187–189 economic, demographic information in, American Needle v. National Football 121–123, 123t League, 183 endorsements, 129n, 129–130, 454–455, broadcasting restraints, 184–185 456t broadcast rights, 139, 139n expenditures, 120–121, 121t challenges by coaches, 372–376 league-wide (public goods theory), challenges by league members, 184–187 131–135, 132f challenges by outsiders, 187–193 naming rights, 24, 124–126, 127, 127n, challenges by student-athletes, 376–378 128n, 295 Clayton Act of 1914, 435–436 of NCAA student-athletes, 377–378 economic rationale for, 175–178, 176f, in NFL, 125t, 131–135, 132f 177n optimal, 118–120, 119f enforcement, 179–182 overview, 7, 117, 135 entry restrictions, 189, 193 profit function, 118 equipment restrictions, 191–193, 194 sponsorships, 124t, 128–129 exemptions, 184 sports agents role in, 459 exemptions for players’ unions, 435–436 sports publications, 124t, 124 Herfindahl-Hirschman Index (HHI), 69, strategic behavior in, 121t, 130–131 69n, 70 African Americans.SeeDiscrimination league rules in, 182–184 Age limits, 478t, 477–480 legal rules, agreements in, 183 Ainge, Danny, 347 market definition, 180 Almagro, Nicolas, 498t monopoly power, 176f, 181–182 American Football League v. National Norris-La Guardia Act of 1932, 436 Football League, 187–189 overview, 9, 175 American League history, 60t, 59–60.Seealso public ownership ban, 185–186, 186n National Football League (NFL) relevant geographic market, 181 American Needle v. National Football League, relevant product market, 180–181 183 relocation restrictions, 186–187 Ameriquest Mortgage Company, 126 rent-seeking, 177n Amphetamines, 266, 269n, 271–272 restrictions on schedules by organizations, Anabolic androgenic steroids, 265–266, 190–191 267n, 271–272 rule of reason, 179–180, 182–183, 374–375 Anaheim Angels, 22t Sherman Antitrust Act (See Sherman Anaheim Ducks, 31t Antitrust Act) Andrews, Erin, 129n Sports Broadcasting Act of 1961, 139–141, Anheuser-Busch advertising revenues, 130 140t, 142t, 188 Anthony, Carmelo, 249, 250, 405 ticket bundling in, 102

509

510 Subject Index

Antitrust policy (cont.) Basketball shoes, 194 United States Football League v. NFL, Bat-gate, 228 189–190, 190n Beamer, Frank, 390t walk-on players litigation, 376–377, 377n Beer advertising revenues, 121t, 130 Arena Football League (AFL), 208, 269n Beimel, Joe, 427t, 426–427 Arenas, Gilbert, 249t, 339t Belichick, Bill, 232 Arizona Cardinals, 27t, 28t, 327t Bell, Mark, 253 Arizona Diamondbacks Belle, Albert, 169 broadcast revenues, payrolls 2001, 23t Beltran, Carlos, 80, 339t capital appreciation of, 34t Benson, Kris, 168 franchise value 2010, 30t Berdych, Tomas, 498t history of, 61t, 60–61 Berri, D. J., 93–95 stadium financing in, 325t Beta-2 agonists, 266, 273 Arrington, LaVar, 411, 411n Bettman, Gary, 53t, 253 Artest, Ron, 249t, 250 Bidding, bargaining (labor) Asomugha, Nnamdi, 339t for coaches, 387–388, 388n, 389n Association of Tennis Professionals (ATP) coaches’ contracts of, 390t, 395–396 age limits in, 478t, 479 economics of, 391–396 cheating in, 236n, 236–237 head coach salaries, 390t, 390 commissioner’s salaries, 52 incentives, bonuses, 396 gender discrimination in, 497–498, 498t overview, 12–13, 383, 402 restrictions on schedules by organizations, posting system (MLB), 397n, 397–402, 191 398t steroid policies, 272 private value auctions (English auctions), Athletic Propulsion Labs, 194 384n, 384–386, 385n Atlanta Braves Big 12 conference, 257 broadcast revenues, payrolls 2001, 23t Big Ten network, 153 broadcast rights monopoly by, 150–151 Black, William “Tank,” 457, 462–463 capital appreciation of, 33–35, 34t Black Sox scandal, 234 final offer arbitration by, 419, 422n Blalock, Jane, 224, 224n franchise value 2010, 30t Blood doping, 267, 271 history of, 61t Board of Regents of the University of payrolls in, 7t Oklahoma and University of Georgia stadium financing in, 325t Athletic Association, NCAA v., 184–185 transfer of ownership, 50–51 Bodenheimer, George, 148 Atlanta Falcons, 27t, 28t, 255–256 Bonds, Barry, 170–171, 281–282, 385, 412 Atlanta Hawks, 29t Bookies, 204–205, 209n Atlanta Thrashers, 31t Boras, Scott, 386, 452–454 Austrian Olympic Committee, 267 Boston Bruins, 31t Azarenka, Victoria, 498t Boston Celtics, 29t, 125–126 Boston Marathon, 224–225 Babby, Lon, 459–460 Boston Red Sox Bagwell, Jeff, 169t, 169–170 broadcast revenues, payrolls 2001, 22t Bailer, Champ, 339t capital appreciation of, 34t, 33–35 Baltimore Orioles final arbitration settlements by, 428–429 broadcast revenues, payrolls 2001, 22t franchise values, 6t, 30t capital appreciation of, 34t history of, 60t franchise value 2010, 30t luxury tax, 79–81, 81t history of, 60t posting system use by, 398t, 399–402 stadium financing, 324t stadium financing, 324t team insurance coverage for, 169 ticket prices, 93–94 Baltimore Ravens Boulerice, Jesse, 252 attendance, performance 2010, 27t Bradford, Sam, 339t criticizing game officials penalties, 257 Brady, Tom, 167 franchise value 2010, 28t Brand, Myles, 211 multiyear contracts with, 409 Brewer, Corey, 467n Barclay’s, 4, 24, 126, 127 Broadcast rights Barkley, Charles, 201 antitrust litigation, 189–190 Barnes, Rick, 396 antitrust policy restraints, 184–185

Subject Index 511

benefits of, 147–148 in tennis, 236n, 236–237 bidding, 140–149, 143f violating rules of play, 224–226 contracts, transaction costs of, 152 to win, 223 market structure for, 138f, 138–139 Chester, Ed, 167, 167n, 467 overview, 8t, 8, 137, 153–154 Chicago Bears ownership limits, 141 attendance, performance 2010, 27t revenues, 22t, 23t, 21–23 franchise value 2010, 28t revenue sharing, 54, 152 stadium financing, 327t Sports Broadcasting Act of 1961, 139–141, ticket prices, 93–94 140t, 142t weapons charges policy, 254–255, 255n sports networks, 140t, 152–153, 153t Chicago Blackhawks, 31t, 78 United States Football League v. NFL, Chicago Bulls, 6t, 29t 189–190, 190n Chicago Cubs vertical integration in, 138f, 149–152, 151f broadcast revenues, payrolls 2001, 23t winner’s curse, 145–146, 146f, 147f, capital appreciation of, 33–35, 34t 295–296 final offer settlement by, 418–419 Brown, Chris, 468 franchise value 2010, 30t Brown, Kwame, 472, 480 history of, 61t Brown, Mack, 390t host city competition for, 299–300 Brown, R. W., 368 multiyear contracts with, 405 Brown, Shawn, 168 stadium financing in, 325t Bryant, Decory, 167 Chicago White Sox Bryant, Kobe, 250, 338, 339t, 480, 481 Black Sox scandal, 234 Buffalo Bills, 27t, 28t broadcast revenues, payrolls 2001, 22t Buffalo Sabres, 31t capital appreciation of, 34t Burgess, Paul, 427t franchise value 2010, 30t Burton, Isaac Jr., 212, 234 history of, 60t Bush, Michael, 166, 166n, 470–471 stadium financing, 324t Business of sports.SeeSports business stadium lease agreement, 293 Chizik, Gene, 390t Cabrera, Miguel, 339t, 426–427, 427t Choi, Na Yeon, 495, 496t Calgary Flames, 31t Cincinnati Bengals, 27t, 28t Cameron, Mike, 269 Cincinnati Reds Cap Relief for Veterans rule, 444t broadcast revenues, payrolls 2001, 23t Carolina Hurricanes, 31t capital appreciation of, 34t Carolina Panthers, 27t, 28t franchise value 2010, 30t Carruth, Rae, 457 history of, 61t Carter, Anthony, 453 posting system use by, 398t Carter, Vince, 457 stadium financing in, 325t Casey, Paul, 496t Citi Group, 7, 24, 126 Certainty equivalent, 164f, 164 Clarett, Maurice, 478, 479 The Challenge at Manele, 96t Clark, Tim, 496t Charlotte Bobcats, 29t, 93–94 Clayton Act of 1914, 435–436 Cheating Clemens, Roger, 170, 354t Bat-gate, 228 Cleveland Browns, 27t, 28t deterrence of, 219–220, 221f Cleveland Cavaliers, 29t, 293–294 distraction by cheerleaders, 229 Cleveland Indians doctored baseballs, 228–229 broadcast revenues, payrolls 2001, 22t Formula One racing, 233 capital appreciation of, 34t illegal equipment use, 227–233 franchise value 2010, 30t to lose, 233–234 history of, 60t in NCAA, 230n, 230–231, 231n stadium financing, 324t overview, 9–10, 218–219, 238 stadium lease agreement, 293, 294t penalties, changing, 221–223, 222f Clijsters, Kim, 498t player collusion in, 211 Coaches point shaving, 212, 234–235 bidding, bargaining for, 387–388, 388n, probability of detection, changing, 221 389n (See also Bidding, bargaining sanctions (death penalty), 370–372 [labor]) sumo wrestling, 235–236 contracts of, 390t, 395–396, 408, 410, 413

512 Subject Index

Coaches (cont.) Competition for franchises, events. incentives, bonuses, 396 See Franchises, events demand multiyear contracts of, 408, 410, 413 Competitive balance racial discrimination, 493t, 493–494, 495t definition of, 65–66 salaries, 390t, 390 economic analysis of, 70–72, 71f, 73 Title IX impacts on, 502–503, 503t free agency in, 70–72, 71f, 73, 74 Coates, T., 93–95 Herfindahl-Hirschman Index (HHI), 69, Coca-Cola advertising revenues, 130 69n, 70 Collective bargaining.SeealsoPlayers’ luxury taxes (See Luxury taxes) unions measures of generally, 67, 70 overview, 13, 432, 441 in New York Yankees, 75, 80–81, 81t by players’ unions, 436–438, 437f Noll-Scully measure, 67n, 67–68, 68t strikes, lockouts, 441 overview, 6–7, 7t, 25, 65, 82 College conferences, 140t, 153t, 153.Seealso reserve clause, 71–72, 73–75 National Collegiate Athletic Association revenue sharing economic implications, (NCAA) 76–77 Collins, Mardy, 249t revenue sharing generally, 75–76 Collusive monopsony reverse-order player drafts, 79 amateurism vs. exploitation, 363, 368 rules, procedures generally, 73 antitrust challenges by coaches, 372–376 salary caps, 77f, 77–78 antitrust challenges by student-athletes, Concussions, 252 376–378 Connecticut General Life Insurance, average costs, 365f, 365, 381 169–170 cheating sanctions (death penalty), Consumer surplus, 89–90, 90f, 91f, 91–92, 370–372 176, 177 coaches in, 367–369, 369t, 372–376, Contador, Alberto, 277–279 376n Contracts effects on costs, 364n, 364–365, 365f, broadcast rights, 152 380–381 of coaches, 390t, 395–396, 408, 410, 413 Hennessey v. NCAA, 372–373, 375, 376 (See also Coaches) incentives, 362f, 362–364 contingent fee, 460–461 Law v. NCAA, 373–376 fixed-fee, 459, 460 marginal costs, 364–365, 365f, 380 hire, 459–460 O’Bannon v. NCAA, 377–378 legal remedies, 463 overview, 12, 348–349 multiyear (See Multiyear contracts) price, quantity limitations, 366n, 366–367, principal-agent, 458–459 367t, 374n stadium naming rights, 24, 124–126, 127, profit maximization in, 362–363 127n, 295 restricted earnings coaches, 373–376, Conyers, John Jr., 479 376n Coors Brewing advertising revenues, 130 revenue sharing in, 370 Coral Creek Golf Course, 101t student-athlete compensation, 366, 366n, Cordero, Chad, 426–427, 427t 368 Corso, Lee, 129n walk-on players antitrust litigation, Cousy, Bob, 434–447 376–377, 377n Cox, Willilam, 207–208 White v. NCAA, 377 Creamer, Paula, 469–470, 496t Colorado Avalanche, 31t Crittenton, Javaris, 249t Colorado Rockies Crosby, Sidney, 339t broadcast revenues, payrolls 2001, 23t Crowell, Germane, 457 capital appreciation of, 34t Cuban, Mark, 17–18, 168, 256–257 franchise value 2010, 30t history of, 60–61, 61t Dallas Cowboys stadium financing in, 325t attendance, performance 2010, 27t Columbus Blue Jackets, 31t, 125–126 franchise values, 6t, 28t Commissioners profit maximization by, 17–18 authority of, 52 stadium financing, 327t salaries, 52, 53t, 338n Dallas Mavericks Commodity bundling (season tickets), franchise value 2010, 29t 102–103, 103t misconduct penalties on, 256–257 Community facility subsidies, 328t, 329t multiyear contracts with, 407

Subject Index 513

profit maximization by, 17–18 Dumervil, Elvis, 339t team insurance coverage for, 168 Duncan, Tim, 339t, 459–460 Dallas Stars, 31t Daly, John, 201, 248 Earnhardt, Dale Jr., 456t Dareus, Marcus, 464 Economic analysis tools Davis, Al, 186–187 Herfindahl-Hirschman Index (HHI), 69, Davydenko, Nikolay, 237 69n, 70 Daytona 500, 129, 229–230 Lerner Index of monopoly, 176f, 181–182 Deadweight social welfare loss of monopoly, overview, 4 178 power measurement (Lerner Index), Death penalty, 370–372 350–351, 351t Deion Sanders Rule, 444t present value calculations (See Present Demand function, 118 value calculations) Dementieva, Elena, 498t uncertainty (See Uncertainty) Dent, Marvin, 492 Economic impact analysis, 11 Denver Broncos, 27t, 28t, 327t Edmonton Oilers, 31t Denver Nuggets, 29t, 250, 405 Educational Amendments, Civil Rights Act, Detroit Lions 1972, 498–504 attendance, performance 2010, 27t Elias, Patrick, 405, 406 franchise value 2010, 28t Els, Ernie, 496t mismanagement of, 66, 66n Elseneer, Gilles, 236n stadium financing, 327t Eminent domain, 300–301 Detroit Pistons, 29t, 206–207, 250 Endorsements, 129n, 129–130, 454–455, Detroit Red Wings, 31t 456t Detroit Tigers English auctions, 384n, 384–386, 385n broadcast revenues, payrolls 2001, 22t Enron, 126 capital appreciation of, 34t Entry restrictions, 189, 193 franchise value 2010, 30t EPO (erythropoietin), 267, 279 history of, 60t Equilibrium wage, 342f, 342–343 luxury tax, 81t, 80–81 Equipment restrictions, 191–193, 194 stadium financing, 324t Erickson, Dennis, 388 DiPietro, Rick, 405–407 Erythropoietin (EPO), 267, 279 Disability insurance, 166–167 ESPN Discount rate business model, 149 importance, 43 Monday Night Football broadcast rights, selection, 32n, 43 148 Discrimination U.S. Open Tennis Championship competition impacts on, 489f, 489–490 broadcast rights, 146–147 concept, identification of, 485–486 ESPN Regional Television, 153 economics of, 486–487 Events, competition for.SeeFranchises, by fans, 490f, 490–491 events demand gender, 494–498, 495t, 496t Exceptional Student Athlete Disability impact of, 487–489, 488f, 489f, 491t Insurance, 166–167 overview, 14, 485, 504 Expected utility model racial, 492t, 492–494, 493t, 495t cheating deterrence of, 219–220, 221f role, 491t, 491–492 gambling, 203f, 203–204 Title IX (gender equality), 498–504 measurement of, 164f, 163–164, 173–174, Diuretics, 266 175–196 Djokovic, Novak, 236, 498t performance-enhancing drugs, 274–281, Dog fighting, 255–256, 256n 276f, 278f Dominguez, Gus, 455 risk aversion, 159–164, 161t, 162f, 163f Donaghy, Tim, 214–215 uncertainty calculations, 4–5 Donald, Luke, 496t Donovan, Billy, 396 Facilities.SeealsoFranchises Dooley, Derek, 390t costs of, 5 Dr. Pepper/Seven Up, 130 financingof(See Financing of facilities) Drew, J. D., 168n naming rights, 24, 124–126, 127, 127n, 295 Drury, Chris, 339t new facilities demands, 295 Duffy, Bill, 453 stadium lease agreements, 293, 294t, 294 Duggan, Mark, 235–236 subsidies, 296–297, 297f

514 Subject Index

Farmer, Amy, 427t financing of facilities (See Financing of Favre, Brett, 456t facilities) Federal Baseball Club of Baltimore, Inc. v. location of, league policies on, 51 National League of Professional Baseball profitability in, 26–31, 28t, 29t, 30t, 31t Clubs, 184 (See also Profitability) Federer, Roger, 129–130, 456t, 498t public ownership ban, 185–186 Fehr, Don, 435 relocation restrictions, 186–187 Feller, Bob, 228 as stand-alone investments, 32 Ferentz, Kirk, 390t Franchises, events demand Ferrari, 233 competition influences on location, Ferrer, David, 498t 297–300 Fighting, 249–250 consumption value, 292 Final Four tickets, 111 economic incentives to host city, 289–292 Final offer arbitration eminent domain in, 300–301 challenges in, 423–424 job creation as incentive, 290 conditions for, 422–423 naming rights, 24, 124–126, 127, 127n, 295 costs of, 424–425 new facilities demands, 295 economic conditions for, 420–422 overview, 11, 289, 292–293, 301 empirical results of, 426t, 426–428, 427t, prestige, exposure as incentive, 291–292 428t Pro Bowl, 291 negotiation of, 418–419, 420t revenue guarantees, 295 overview, 13, 418, 429 stadium, ballpark, arena as player protection, 428–429 construction/leasing, 293–294 settlement economics, 419–425 stadium revenues, 295 Financing of facilities subsidizing of franchise, 296–297, 297f alcohol, cigarette taxes in, 333t tax revenue as incentive, 290–291 bonds, taxation, 331t, 332t, 333t, 334t winner’s curse, 145–146, 146f, 147f, community facility subsidies, 328t, 295–296 329t Franco, John, 164–166 debit financing, equity, 334t Free agency as investment, 321–323 bidding, bargaining (labor) (See Bidding, logrolling, 330t bargaining (labor)) lottery taxes in, 333t collusive monopsony in, 348–349 overview, 11, 320, 334t in competitive balance, 70–72, 71f, 73, 74 political decisions in, 329t in MLB, 442 private and public funding, 323–327, 324t, monopsonistic exploitation in, 352t 325t, 327t in NBA, 443 scrap value, 322–323 in NFL, 442–443 Finchem, Tim, 52, 273 in NHL, 443 Finley, Michael, 168 posting system (MLB), 397–402 First Union, 126 restrictions on, 442, 442n Fitzgerald, Larry, 468–469, 469t, 471, 478 Fuentes, Brian, 428t Florida Marlins Furyk, Jim, 205–206, 227, 496t broadcast revenues, payrolls 2001, 23t Future stream valuation, 41–42, 42t capital appreciation of, 34t Future values, 38–39, 41t franchise value 2010, 30t history of, 60–61, 61t Gambling stadium financing in, 325t AFL, 208 Florida Panthers, 31t Donaghy case, 214–215 Formula One racing, 233 economics of, 201–204, 202f, 203f Fort, Rodney, 67, 68 expected utility model, 203f, 203–204 Fowler, Chris, 129n (See also Expected utility model) Fox Entertainment Group, 153 by game officials, 212t, 212–215 Franchione, Dennis, 210 horse racing, 208 Franchises.SeealsoFacilities NCAA (See under National Collegiate celebrity benefit, 35 Athletic Association (NCAA)) competition for (See Franchises, events Neuheisel case, 213 demand) overview, 9, 201, 215 financial disclosure by, 27–29, 28n point spread wagers, 204–205

Subject Index 515

by professional athletes, 205–208 Henkel, Bill, 459 risk seeker utility function, 201–203, 202f Hennessey v. NCAA, 372–373, 375, 376 risksofinMLB,208–209 Henry, Chris, 248t, 248–254, 254n sports books (bookies), 204–205, 209n Herbstreit, Kirk, 129n Garnett, Kevin, 339t, 480, 481 Herfindahl-Hirschman Index (HHI), 69, 69n, Garrison, Zina, 492 70 Gasol, Pau, 339t Hill, Grant, 459–460 Gate receipts, 20–21, 21t, 54, 75–76 Hockey, 193 Gatlin, Justin, 282 Hollweg, Ryan, 251 Gender equality.SeeTitle IX (gender Horford, Al, 467n equality) Hormones, 266–267 Gill, Turner, 390t Hornung, Paul, 206 Gillispie, Billy, 389, 396 Horse collar tackles, 252 Glavine, Tom, 406, 409–410 Horse racing, 208 GlaxoSmithKline, 274 Hossa, Marian, 78 Goggins, Jason, 458 Hot face drivers, 227 Golden State Warriors, 29t Houston Astros Golf.SeealsoLPGA; PGA; PGA Tour broadcast revenues, payrolls 2001, 23t equipment restrictions in, 227 capital appreciation of, 34t gender discrimination in, 494–497, 495t, franchise value 2010, 30t 496t history of, 60–61, 61t peak load pricing, 99–102, 101f, 101t multiyear contracts with, 411–412 price discrimination in, 96t stadium financing in, 325t rules violations, cheating in, 224 team insurance coverage for, 169t, sponsorships in, 128–129, 124t 169–170 steroid policies, 272–273 Houston Rockers, 29t Gomez, Scott, 339t Houston Texans, 27t, 28t, 124 Goodell, Roger Howard, Dwight, 456t, 481 on broadcast rights ownership, 141 Howard, Ryan, 339t, 427t, 428t dress code violations policy, 258 Hull, Katherine, 496t misconduct policies, 244–246 Humphries, B. R., 93–95 repeat offenders policy, 253–254 Hunter, Billy, 435 salary, 52, 53t Hunter, Lindsey, 249t suspensions of players by, 248t, 248–255 Huston, Nyjah, 480 taping fines imposed by, 232 weapons charges policy, 254–255, 255n Igawa, Kei, 398t, 398–399, 399n Goosen, Retief, 496t Ilitch, Michael, 51 Gordon, Jeff, 229, 456t Image, integrity Green, A. J., 464 cheating (See Cheating) Green, Jacquez, 457 gambling (See Gambling) Green, Taurean, 467n overview, 9 Green Bay Packers participant misconduct (See Participant attendance, performance 2010, 27t misconduct) franchise value 2010, 28t performance-enhancing drugs as publicly owned, 186n (See Performance-enhancing drugs) stadium financing, 327t Implicit fines, suspensions, 248, 249t Gregg, Kevin, 426–427, 427t Indiana Pacers, 29t, 250 Griffey, Ken Jr., 342 Indianapolis Colts, 27t, 28t, 327t Grimes, Mickey, 271 Insurance of player talent Grossman, Rex, 474–475 certainty equivalent, 164f, 164 Gunter Harz, 191–192 cooperation in, 170 Gurode, Andre, 251 decisions, 170–171 expected utility model (See Expected Hambric Sports, 463 utility model) Harvey, Donnell, 407 failure to insure, 167 Hawaii Kai Golf Course, 101t NCAA disability insurance, 166–167 Haynesworth, Albert, 248t, 248–251, 251n overview, 8, 158–159, 171 Heatley, Dany, 339t premiums, 167–168 Henin, Justine, 498t risk aversion, 159–164, 161t, 162f, 163f

516 Subject Index

Insurance of player talent (cont.) Kovalchuk, Ilya, 78 risk neutrality, 160–161, 161t, 163f, 163 Kraft, Whitney, 492 shifting risk, 164–166, 165f Krautmann, A. C., 93–95, 352t team purchases, 168n, 168–171, 169t Kuchar, Matt, 475, 495, 496t Interest accommodation test, Title IX, 501 Kuhn, Bowie, 207–208 International Automobile Federation, 233 Kuznetsova, Svetlana, 498t International Olympic Committee (IOC), 145–146, 280–281 Lacrosse stick head design, 193 Ishii, Kazuhisa, 398t La Frentz, Raef, 168 Ivanova, Lyubov, 277–279 Landis, Kennesaw Mountain, 207–208, 234 Iwamura, Akinori, 228, 398t, 398 Lanham Act, 23 Larry Bird Exception, 445t Jackson, Bo, 347 Law v. NCAA, 373–376 Jackson, Jesse, 479 Leach, Mike, 257 Jackson, Stephen, 250 Leaf, Ryan, 79 Jackson, Steven, 249t Leagues, organizations. See also specific Jacksonville Jaguars, 27t, 28t franchises and organizations James, LeBron, 456t, 480, 481 athletic competition production, 52–53 James Madison University, 501 as cartels, 48 Jennings, Brandon, 481 commissioners, authority of, 52 Jeter, Derek, 13, 339t, 383, 412, 456t commissioner’s salaries, 52, 53t, 338n John, Tommy, 158 consumer welfare in, 56–58, 59f Johnson, Ben, 271–272, 272n, 282 cooperation off the field, 47 Johnson, Dustin, 496t expansion of, 58n, 58–61, 60t, 61t Johnson, Jimmie, 456t formation of, 47 Johnson, Larry, 393–394 governance, 52, 53t Johnson, Paul, 390t as joint ventures, 47n, 47–48, 48n Johnson, Tank, 248t, 248–255 membership, 50n, 50–51 Jones, Adam “Pacman,” 248t, 248–254, 253n, as monopolies, 56–58, 57f, 57n (See also 254n, 255n Monopoly models) Jones, Jerry, 17–18 overview, 5–6, 46–47 Jones, June, 390t players market, 53–54 Jones, Marion, 279, 282–283 product marketing, 53 Jones, Pacman, 52 profit maximization in (See Profitability; Jonkovic, Jelena, 498t Profit maximization) Jordan, Michael, 347 revenue sharing in, 54–56 (See also Revenue sharing) Kafelnikov, Yevgeny, 237 rules, procedures in, 50–54 Kansas City Chiefs, 27t, 28t, 327t sports networks, 140t, 152–153, 153t Kansas City Royals transfers of ownership, 50–51 broadcast revenues, payrolls 2001, 22t League-wide advertising, 131–135, 132f, 133f capital appreciation of, 34t Lecavalier, Vincent, 339t franchise value 2010, 30t Lee, Carlos, 339t history of, 59–60, 60t Lee, Cliff, 387 payrolls in, 7t Leinert, Matt, 470 stadium financing, 324t Lerner Index Karras, Alex, 206 of monopoly, 176f, 181–182 Karsten Manufacturing Company, 192–193 monopsony power measurement, Keith, Duncan, 339t 350–351, 351t Kelly, Chip, 390t Levitt, Steven, 235–236 Kerr, Cristie, 496t Lewis, Carl, 271–272 Kesler, Ryan, 252 Lewis, Jamal, 409 Kidd, Jason, 257 Lewis, Rashard, 249t, 339t Kim, Anthony, 463 Li, Na, 498t Kim, In-Kyung, 496t Lincicome, Brittany, 496t Kim, Song-Hee, 496t Ljubicic, Ivan, 498t Kirilenko, Andrei, 339t Lockouts, strikes, 441 Kitna, Jon, 251n Lo Duca, Paul, 208 Kontak, Brian, 497 Logrolling, 330t

Subject Index 517

Long, Jake, 446–447, 452 illegal equipment use in, 227–229 Lopez, Felipe, 427t, 428t injury risks in, 158–159 Loretta, Mark, 428t league membership policies, 51 Los Angeles Angels of Anaheim leagues as joint ventures in, 47n, 47–48, capital appreciation of, 34t 48n franchise value 2010, 30t luxury taxes in, 77–80, 80t, 81t, 443, 445t history of, 59–60, 60t as monopoly, 56–58, 57f, 57n (See also luxury tax, 80–81, 81t Monopoly models) stadium financing in, 324t multiyear contracts in, 406, 409–410, Los Angeles Clippers, 29t 411–413 Los Angeles Dodgers payrolls in, 7t broadcast revenues, payrolls 2001, 23t performance-enhancing drug penalty in, capital appreciation of, 33–35, 34t 10 franchise value 2010, 30t posting system in, 397n, 397–402, 398t history of, 61t pricing complements in, 109t posting system use by, 398t racial discrimination in, 492t, 492–493 profit maximization by, 17–18 reserve clause in, 71–72, 73–75, 433 stadium financing in, 325t revenue sharing in, 54, 55–56, 447–448 Los Angeles Kings, 31t salary, average, 338 Los Angeles Lakers, 6t, 29t, 125–126 salary, top ten 2010, 339t Los Angeles Open, 129 salary caps in, 77f, 77–78 LPGA stadium financing in, 324t, 325t age limits in, 478t, 479–480 stadium lease agreements in, 293, 294t commissioner’s salaries, 52 steroid policies, 268–269 gender discrimination in, 494–497, 495t, Major League Baseball Players Association, 496t 433 rules violations, cheating in, 224 Major League Soccer (MLS), 137, 478t sponsorships in, 124t, 128–129 Makaha Resort, 101t steroid policies, 272–273 Makaha Valley, 96t Luongo, Roberto, 338, 339t Malkin, Evgeni, 339t Luxury taxes Mangini, Eric, 232 economic implications, 80–81 Manning, Eli, 456t overview, 77–80, 80t, 81t, 443, 445t Manning, Peyton, 79, 338, 339t, 456t, 470 Marburger, Daniel, 427t Maddon, Joe, 228 March Madness, 145 Maddux, Greg, 392–393, 419, 420–422, 422n Marginal costs, 364–365, 365f, 380 Madrazo, Roberto, 225 Marino, Dan, 158 Mahan, Hunter, 496t Massachusetts Supreme Court, 499 Major League Baseball (MLB) Masters golf tournament, 111–112 age limits in, 478t, 478–479 Matsuzaka, Daisuke, 398t, 399–402, 400n antitrust policy exemptions, 184 Mauer, Joe, 419, 419n Bat-gate, 227n, 228 Maxwell, Vernon, 248, 249t Black Sox scandal, 234 Mayo, O. J., 481 broadcast revenues, 21–23, 22t, 23t Mayweather, Floyd Jr., 456t broadcast rights sales in, 140–141 McClain, Denny, 207–208 capital appreciation in, 33–35, 34t McCormack, Mark, 451 commissioner’s salaries, 52, 53t, 338n McCoy, Gerald, 339t competitive balance in, 6–7, 7t McGahee, Willis, 158 consumer welfare in, 56–58 McGwire, Mark, 281–282 doctored baseballs, 228–229 McLaren Mercedes, 233 expansion of, 58n, 58–61, 60t, 61t McNabb, Donovan, 339t, 405 fighting penalty, 250 McNally, Dave, 433 final offer arbitration in (See Final offer Melzer, Jurgen, 498t arbitration) Memphis Grizzlies, 29t, 189 franchise values, 6t, 30t Merriman, Shawne, 269–270 free agency in, 442 Messersmith, Andy, 433 gambling restrictions in, 207–208 Meyer, Urban, 388, 388n, 390t, 390, 395, 408 gambling risks in, 208–209 Miami Dolphins, 27t, 28t, 50–51 gate receipts 2009–2010, 21t Miami Heat, 29t, 256–257

518 Subject Index

Mickelson, Phil, 205–206, 456t, 496t Montreal Canadiens, 6t, 31t Mid-Level Exception, 445t Montreal Expos, 23t, 60–61.Seealso Miles, Darius, 249t Washington Nationals Miles, Les, 390t Mori, Shinji, 398t Millen, Matt, 66n Morrison, Jeff, 475 Miller, Marvin, 433 Moss, Jarvis, 244–246 Miller Brewing, 130 Moss, Randy, 79, 353t, 354n, 354t Milwaukee Brewers Mota, Guillermo, 281 broadcast revenues, payrolls 2001, 23t Multiyear contracts.SeealsoInsurance of capital appreciation of, 34t player talent franchise value 2010, 30t for coaches, 408, 410, 413 history of, 60–61, 61t economic value of, 13, 405–406, 413–414 payrolls in, 7t with guarantees, 412–413 stadium financing in, 325t without guarantees, 410–411 Milwaukee Bucks, 29t, 293 incentive clauses in, 413 Minimum salaries, 443n, 446t, 447t, 447 in NFL, 409, 411, 411n, 412–413 Minnesota Hockey Inc., 193 option years in, 411–412 Minnesota Made Hockey (MMH), 193 as present value calculation, 4(See also Minnesota Timberwolves, 29t Present value calculations) Minnesota Twins signing bonuses, 412 broadcast revenues, payrolls 2001, 22t uncertain terms in, 408–410 capital appreciation of, 34t valuation fundamentals, 406–408 final offer settlement by, 418–419 Munoz, Anthony, 241–242 franchise value 2010, 30t Murray, Andy, 498t history of, 60t Murray, Stephen, 170 posting system use by, 398t, 401 stadium financing in, 324t Nadal, Rafael, 456t, 469–470, 498t Minnesota Vikings, 27t, 28t Nakamura, Norihiro, 398t Minnesota Wild, 31t Naming rights, 24, 124–126, 127, 127n, 295 Miyazato, Ai, 496t NASCAR Mohawk Trail Regional High School, 499 cheating in, 233 Molinas, Jack, 206–207 illegal equipment use in, 223n, 229–230 Monday Night Football, 148 offensive language, gestures policy, Monfils, Gael, 498t 257–258 Monopoly models sponsorships in, 129 antitrust issues (See Antitrust policy) Nash, Steve, 168 bilateral, 438–441, 439f, 440f Nashville Predators, 31t deadweight social welfare loss of National Basketball Association (NBA) monopoly, 178 age limits in, 478t, 478–479, 480 leagues, organizations as, 56–58, 57f, 57n commissioner’s salaries, 52, 53t MLB, 56–58, 57f, 57n equipment restrictions in, 194 power, 176f, 181–182 fighting penalty, 250 pricing, 90–92, 91f franchise values, 6t, 29t structural, 179 free agency in, 443 successive, 149–151, 151f gambling restrictions in, 206–207, 214–215 Monopsony.SeealsoSalary determination gate receipts 2009–2010, 21t collusive (See Collusive monopsony) gender discrimination in, 494 monopsonistic exploitation, 351t minimum salaries in, 443n, 446t, 447t, in NCAA, 12t, 12, 361–362, 366, 378 (See 447 also Collusive monopsony) misconduct penalties, 256–257 overview, 11–12, 343–345, 344f, 345f multiyear contracts in, 407, 412–413 player drafts, 347–348 naming rights sale in, 125–126 power measurement (Lerner Index), racial discrimination in, 492t, 492–493 350–351, 351t reserve clause challenges in, 434 power sources, 345n, 347–348 revenue sharing in, 54 profit maximization in, 340–341, 341f, revenue sources, 19 341n salary, average, 338 reserve clause, 347 salary, top ten 2010, 339t social welfare loss in, 345f, 345–347 salary caps in, 13–14, 77f, 77–78, 445t

Subject Index 519

stadium lease agreements in, 293–294 multiyear contracts in, 409, 411, 411n, steroid policies, 270 412–413 suspensions, implicit fines, 248, 249t performance-enhancing drug penalty in, National Basketball Player’s Association, 434, 10 438 personal conduct policy, 242t, 242–243 National Collegiate Athletic Association practice facility naming rights, 124 (NCAA) preseaon games in, 103t broadcasting restraints, 184–185 public ownership ban, 185–186 broadcast revenues, 153t racial discrimination in, 492t, 492–493 business of generally, 16 relocation restrictions, 186–187 cheating in, 230n, 230–231, 231n revenue sharing in, 54 cheating sanctions in (death penalty), reverse-order player drafts, 79 370–372 salary, average, 338 disability insurance, 166–167 salary, top ten 2010, 339t equipment restrictions, 193 salary caps in, 13–14, 77f, 77–78, 443–444, Final Four tickets, 111 444t Franchione newsletter, 210 sponsorships in, 128 gambling policy, 209n, 209–210 spygate, 52, 231n, 231–232, 232n gambling sanctions, 210–213 stadium financing in, 326–327, 327t monopsony in, 12t, 12, 361–362, 366, 378 stadium lease agreements in, 294 (See also Collusive monopsony) stadiums in, 125t multiyear contracts in, 413 steroid policies, 269–270 point shaving, 212, 234–235 team quality, attendance in, 26, 27t profit maximization in, 50 ticket bundling in, 102, 103t revenues, top programs, 12t trademarks rights in, 183 safety policies, 258–259 weapons charges policy, 254–255, 255n sports agents in, 458, 464, 477 National Football League, American Football steroid policies, 267–268 League v., 187–189 Title IX compliance, 499–500 National Football League, American Needle National Football League (NFL) v., 183 advertising, promotion in, 125t, 131–135, National Football League Players 132f Association, 433–434, 438, 462–463, 479 age limits in, 477, 478t, 478, 479 National Hockey League (NHL) American Football League v. National age limits in, 478t Football League, 187–189 broadcast revenues, 21–23, 22t, 23t as bilateral monopoly, 438–441, 439f, 440f commissioner’s salaries, 52, 53t broadcast revenues, 21–23, 22t, 23t, 137 drunk driving policy, 253 broadcast rights ownership limits, 141 fighting penalty, 250 broadcast rights pooling by, 138f, franchise values in, 6t, 31t 138–139 free agency in, 443 commissioner’s salaries, 52, 53t, 338n gate receipts, 20–21, 21t criticizing game officials policy, 257 intentionally hurting opponent, 251–252 distraction by cheerleaders, 229 minimum salaries in, 446t, 447t, 447 dog fighting policy, 255–256, 256n multiyear contracts in, 406–407 draft results, 471–473, 473t naming rights sale in, 125–126 dress code violations policy, 258 revenues, player’s share of, 444t drunk driving policy, 253 salary, average, 338 fighting penalty, 250 salary, top ten 2010, 339t franchise value growth in, 28t, 32–33, 33t salary caps in, 13–14, 77f, 77–78, 444t franchise values in, 6t, 33t steroid policies, 270–271 free agency in, 442–443 National Hockey League Players Association, gambling restrictions in, 206 435, 438 gate receipts, 20–21, 21t National League, 60–61, 61t.SeealsoMajor horse collar tackles, 252 League Baseball (MLB) injury risks in, 158–159 National League of Professional Baseball intentionally hurting opponent, 251, 252 Clubs, Federal Baseball Club of league expansion antitrust ligitation, Baltimore, Inc. v., 184 187–189 NBC, 145–146, 170 minimum salaries in, 446t, 447t, 447 NCAA, Hennessey v., 372–373, 375, 376

520 Subject Index

NCAA, Law v., 373–376 franchise values, 6t, 30t NCAA, O’Bannon v., 377–378 history of, 60t NCAA, White v., 377 luxury tax, 79–81, 81t NCAA v. Board of Regents of the University of payrolls in, 7t, 75, 81t Oklahoma and University of Georgia posting system use by, 398t, 398–399, Athletic Association, 184–185 401–402 Nelson, Brett, 471 profit maximization by, 17–18 Neuheisel, Rick, 213 Rodriguez negotiation, 453–454 New England Patriots stadium financing in, 324t attendance, performance 2010, 27t team insurance coverage for, 170–171 broadcast rights ownership limits, 141 NFL, United States Football League v., franchise values, 6t, 28t 189–190, 190n public ownership ban, 185–186 Nike, 129n, 129–130 spygate, 52, 231n, 231–232, 232n, 233n Nishioka, Tsuyoshi, 398t stadium financing, 327t Niskioka, Tsuyoshi, 401 NewJerseyDevils,31t, 78, 405 Nissan, 129 NewJerseyNets No agent rule, 458, 464, 477 franchise value 2010, 29t Noah, Joakim, 467n stadium naming rights, 4, 24, 126, 127 Noll, Roger, 67 Newman, Terence, 251n Noll-Scully measure, 67n, 67–68, 68t New Orleans Hornets, 19, 29t Nomo, Hideo, 397n New Orleans Saints, 27t, 28t Norris-La Guardia Act of 1932, 436 New York Giants Northern Trust, 129 attendance, performance 2010, 27t Nowitzki, Dirk, 168 broadcast rights ownership limits, 141 Nutt, Houston, 390t franchise value 2010, 28t multiyear contracts with, 411, 411n Oakland A’s, 22t stadium financing, 327t Oakland Athletics New York Islanders, 31t, 405 capital appreciation of, 34t New York Jets franchise value 2010, 30t attendance, performance 2010, 27t history of, 60t franchise value 2010, 28t stadium financing in, 324t practice facility naming rights, 124 Oakland Raiders, 27t, 28t, 186–187 spygate, 52, 231n, 231–232, 232n O’Bannon v. NCAA, 377–378 stadium financing, 327t Oden, Greg, 481 New York Knicks Oklahoma City Thunder, 29t fighting penalty, 250 Oliver, Andy, 477 franchise value, 6t Olomana Golf Links, 96t franchise value 2010, 29t O’Neal, Jermaine, 249t, 250 multiyear contracts with, 407 O’Neal, Shaquille, 456t, 469, 469n ticket prices, 93–94 Orlando Magic New York Mets franchise value 2010, 29t bidding for Zito by, 386 stadium financing, 331t, 332t, 333t broadcast revenues, payrolls 2001, 23t Orr, Colton, 251 capital appreciation of, 34t Ortiz, David, 456t final arbitration settlements by, 427t Otsuka, Akinori, 398t franchise values, 6t, 30t Ottawa Senators, 31t history of, 60–61, 61t Ovechkin, Alexander, 251, 339t multiyear contracts with, 406 Overton, Jeff, 496t shifting risk, 164–166, 165f Owens, Terrell, 353n, 353t stadium financing, 325t, 334t stadium naming rights purchase, 7 Palmeiro, Rafael, 281–282 New York Rangers, 6t, 31t Palmer, Arnold, 451 New York Yankees Pan American Games, 144 bidding for Zito by, 386 Park, Inbee, 496t broadcast revenues, payrolls 2001, 22t Parry, Craig, 273 capital appreciation of, 33–35, 34t Participant misconduct competitive balance in, 75, 80–81, 81t appeal rights, 244 final offer arbitration by, 425, 427t cheating, 211, 259 (See also Cheating)

Subject Index 521

criticizing game officials, 256–257 stimulants, 266, 269n, 271–272 deterrence, 244–248, 245f Perry, Gaylord, 228 disciplining players for, 241–242 Personal conduct policy, NFL, 242t, dog fighting, 255–256, 256n 242–243 dress code violations, 258 Personal seat licenses (PSLs), 295, 323n drunk driving, 253 Peterson, Adrian, 470–471 duty to report, 244 Peterson, Julian, 411n fighting, 249–250 Petrino, Bobby, 390t gambling (See Gambling) Pettersen, Suzann, 496t intentionally hurting opponent, 251–252 Pettite, Andy, 385 legal problems, 253 PGA offensive language, gestures, 257–258 advertising expenditures by, 120, 122t off-field, 52, 253 age limits in, 478t, 479–480 overview, 10, 241, 259 commissioner’s salaries, 52 personal conduct policy, NFL, 242t, restrictions on schedules by organizations, 242–243 190–191 persons charged with criminal activity, sponsorships in, 124t, 128–129 243 steroid policies, 272–273 persons convicted of criminal activity, PGA Tour 243–244 appearance fees, 391n point shaving, 212 equipment restrictions, 192–193, 227 prohibited conduct, 243 gambling restrictions in, 205–206 repeat offenders, 253n, 253–254, 254n gender discrimination in, 494–497, 495t, safety concerns, 258–259 496t spygate, 52, 231n, 231–232, 232n suspensions, implicit fines, 248 steroid use (See Performance-enhancing Philadelphia Eagles drugs) attendance, performance 2010, 27t suspensions, implicit fines, 248, 249t franchise value 2010, 28t violence on field, 250–251, 251n practice facility naming rights, 124 violent activity in workplace, 244 stadium financing, 327t weapons charges, 254–255, 255n Philadelphia 76ers, 29t Patterson, John, 426–427, 427t Philadelphia Flyers, 31t, 125–126 Paul, Josh, 427t, 426–427 Philadelphia Phillies Pavano, Carl, 158–159, 159n, 168 broadcast revenues, payrolls 2001, 23t Peak load pricing, 99–102, 101f, 101t capital appreciation of, 34t Pecorino, Paul, 427t final arbitration settlements by, 427t Pedroia, Dustin, 428–429 franchise value 2010, 30t Pennetta, Flavia, 498t gambling litigation involving, Peppers, Julius, 339t 207–208 Pepsi-Cola advertising revenues, 130 hand signal theft by, 231n Perez, Oliver, 427t, 428t history of, 61t Performance-enhancing drugs payrolls in, 7t abuse prevalence, 263–265, 264t, 269n stadium financing in, 325t anabolic androgenic steroids, 265–266, Phoenix Coyotes, 31t, 125–126 267n, 271–272 Phoenix Suns, 29t, 293 banned substance benefits, risks, 265–267 Ping Eye 2 Irons, 192–193 beta-2 agonists, 266, 273 Pinkel, Gary, 390t blood doping, 267, 271 Pitino, Rick, 395–396 diuretics, 266 Pittsburgh Penguins, 31t EPO (erythropoietin), 267, 279 Pittsburgh Pirates financial sanctions, 281 broadcast revenues, payrolls 2001, 23t hormones, 266–267 capital appreciation of, 34t loss of reputation, 281–282 franchise value 2010, 30t overview, 10, 218, 218n, 227n, 263, history of, 61t 283–284 payrolls in, 7t sanctions, deterrence, 274–281, 276f, 278f stadium financing, 325t steroid-free nutritional supplements, 274 Pittsburgh Steelers, 27t, 28t, 124 steroid policies generally, 267 (See also Player, Gary, 273 specific organizations) Player drafts, 347–348

522 Subject Index

Players’ unions.SeealsoCollective Pro Bowl, 291 bargaining Producer surplus, 176, 177 antitrust exemptions for, 435–436 Profitability.SeealsoPresent value collective bargaining by, 436–438, 437f calculations excess supply approaches, 438 capital appreciation, MLB, 33–35, 34t executive directors, 435 defined, 24–25 goals, economic consequences of, franchise value growth in NFL, 28t, 32–33, 436–437, 437f 33t Major League Baseball Players Association in franchise values, 26–31, 28t, 29t, 30t, 31t (MLBPA), 433 as goal, 16–17 minimum salaries, 443n, 446t, 447t, 447 as stand-alone investments, 32 National Basketball Players Association team quality in, 25–26, 27t (NBPA), 434, 438 Profit function, 118 National Football League Players Profit maximization Association (NFLPA), 433–434, 438, athletic talent (monopsony), 340–341, 462–463, 479 341f, 341n National Hockey League Players in collusive monopsony, 362–363 Association (NHLPA), 435, 438 overview, 48–50, 49f, 50n organization of, 432–433 by player’s unions, 436–437, 437f overview, 13, 432, 448 price discrimination in, 97 sports agents supervision by, 462–463 revenues in, 17–19 Player talent.SeeInsurance of player talent ticket pricing, 97–99, 98f, 100f Point shaving, 212, 234–235 Program expansion test, Title IX, 501 Point-spread wagers, 204–205 Proportionality test, Title IX, 500 Portland Trail Blazers, 29t Prothro, Tyrone, 458 Posting system (MLB), 397n, 397–402, 398t Public goods theory, 131–135, 132f, 133f Present value calculations.Seealso Public ownership ban, 185–186, 186n Profitability Puckett, Kirby, 385 discount rate importance, 43 Puerta, Mariano, 272 discount rate selection, 32n, 43 Pujols, Albert, 456t equal amount streams, 42–43 equations, 39t, 39–40 Querrey, Sam, 498t future stream valuation, 41–42, 42t Quezada, Alejandro, 398t future values, 38–39, 41t Quinn, Brady, 394 overview, 4, 38 Quirk, James, 67, 68 present-future relationship, 40 Pressel, Megan, 469–470 Ramirez, Ramon, 398t Pressel, Morgan, 496t Randolph, Zach, 339t Price discrimination, 95–99, 96t, 98f, 100f Redd, Michael, 339t Pricing complements, 21 Reliant Stadium naming rights contract, 126 Pricing decisions Relocation restrictions, 186–187 commodity bundling (season tickets), Reserve clause 102–103, 103t challenges to, 433, 434 competition vs. monopoly, 92 competitive balance, 71–72, 73–75 competitive pricing, 89–90, 90f in MLB, 71–72, 73–75, 433 complements, 107–109, 109t monopsony, 347 demand elasticity in, 93–95 Revenues empty seats in, 93f, 93–94 broadcast, 21–23, 22t, 23t Final Four tickets, 111 gate receipts, 20–21, 21t, 54, 75–76 monopoly pricing, 90–92, 91f generating costs, 24 overview, 7, 89, 113 naming rights, 24, 124–126, 127, 127n, 295 peak load pricing, 99–102, 101f, 101t pricing complements, 21 price discrimination, 95–99, 96t, 98f, 100f in profit maximization, 17–19 student tickets, 110–111 sharing (See Revenue sharing; specific ticket scalping, 110f, 110–113, 113n organizations) two-part pricing, 104t, 106f, 107 sources of, 19 Principal–agent problem, 451, 457–461 stadium, 21 Private value auctions (English auctions), trademark licensing fees, 23 384n, 384–386, 385n transfer to weaker teams, 54–55

Subject Index 523

Revenue sharing Salary determination.SeealsoMonopsony broadcast rights, 54, 152 athletic talent demand, 340–342, 341f, in collusive monopsony, 370 341n economic implications, 76–77 bidding, bargaining (labor) (See Bidding, in NBA, 54 bargaining (labor)) in NFL, 54 equilibrium wage, 342f, 342–343 overview, 54–56, 75–76, 447–448 market demand for labor, 342 Reverse-order player drafts, 79 overview, 11–12, 338, 339t Revis, Darrelle, 394–395 San Antonio Spurs, 29t, 293 Rezai, Aravane, 498t Sanders, Deion, 347 Richt, Mark, 390t San Diego Chargers, 27t, 28t, 294 Risk aversion, 159–164, 161t, 162f, 163f San Diego Padres Risk neutrality, 160–161, 161t, 163f, 163 broadcast revenues, payrolls 2001, 23t Risk seeking, 201–203, 202f capital appreciation of, 34t Rivera, Mariano, 425 franchise value 2010, 30t Robinson, Nate, 249t, 250 history of, 60–61, 61t Roddick, Andy, 498t posting system use by, 398t Rodman, Dennis, 248, 249t stadium financing in, 325t Rodrigues, Geoffrey, 455 San Francisco 49ers, 27t, 28t Rodriguez, Alex, 228, 338, 339t, 452, San Francisco Giants 453–454 bidding for Zito by, 386 Rodriguez, Francisco, 428t broadcast revenues, payrolls 2001, Rodriguez, Rich, 390t 23t Roethlisberger, Ben, 244 capital appreciation of, 34t Rogers, Kenny, 228–229 franchise value 2010, 30t Rogers, Shaun, 269–270 history of, 61t Rookie Exception, 445t stadium financing in, 325t Rooney, Dan, 50–51 SanJoseSharks,31t Rose, Justin, 496t Santana, Johan, 339t Rose, Pete, 207–208 Savage, Raymond, 458 Roy Williams Rule, 252 Scarborough Research, 121 Rubio, Ricky, 478–479 Schiavone, Francesca, 498t Ruiz, Rosie, 224–225 Schilling, Curt, 413 Rule of reason, 179–180, 182–183, 374–375 Scoggins, John, 427t Russell, JaMarcus, 452 Scott, Bart, 257 Ruutu, Jarko, 252 Scott, Ian, 167 Ryan, Matt, 452 Scrap value, 322–323 Ryan, Rex, 257–258 Scully, Gerald, 67, 73, 351t Season tickets, 102–103, 103t Saban, Nick, 388–389, 389n, 390t, 390, 395 Seattle Mariners Sabathia, C. C., 339t bidding for Zito by, 386 Sacramento Kings, 29t broadcast revenues, payrolls 2001, 22t Salary caps capital appreciation of, 34t Cap Relief for Veterans rule, 444t franchise value 2010, 30t Chicago Blackhawks, 78 history of, 59–60, 60t in competitive balance, 77f, 77–78 payrolls in, 7t Deion Sanders Rule, 444t posting system use by, 398t hard, 442n, 443–445, 444t, 445t stadium financing in, 324t Larry Bird Exception, 445t Seattle Seahawks Mid-Level Exception, 445t attendance, performance 2010, 27t minimum salaries, 443n, 446t, 447t, 447 franchise value 2010, 28t in MLB, 77f, 77–78 multiyear contracts with, 411n in NBA, 13–14, 77f, 77–78, 445t practice facility naming rights, 124 New Jersey Devils, 78 stadium financing, 327t in NFL, 13–14, 77f, 77–78, 443–444, 444t Seattle Supersonics, 299 in NHL, 13–14, 77f, 77–78, 444t Seitz, Peter, 433 overview, 443 Selig, Bud, 53t, 338n Rookie Exception, 445t Sharapova, Maria, 469–470 soft, 445t Sherburne, Ryan, 499

524 Subject Index

Sherman Antitrust Act competitive balance (See Competitive on broadcast rights, 139, 139n balance) on entry restrictions, 193 insurance of player talent (See Insurance history, purpose of, 178 of player talent) Section 1 (collusive efforts to emulate leagues, organizations (See Leagues, monopoly), 178, 178n, 182, 374–375, organizations) 435–436 overview, 5, 6t, 16–17 Section 2 (prevention of emergence of pricing decisions (See Pricing decisions) monopoly), 179 profit (See Profitability) Shin, Jiyai, 496t revenues (See Revenues) Shula, Mike, 410, 458 Sports economics generally, 3 Silman, Benny, 234 Sports networks, 140t, 152–153, 153t Simon, Chris, 251n, 251–252 Sports publications, 124t, 124 Smith, Emmitt, 469 Sprewell, Latrell, 248, 249t Smith, J. R., 249t, 250 Spurrier, Steve, 388, 388n Smith, Steven, 212, 234 Spygate, 52, 231n, 231–232, 232n SMU (Southern Methodist University), 371 St. Louis Blues, 31t Soccer, 137, 478t St. Louis Cardinals Social welfare, 176, 177 broadcast revenues, payrolls 2001, 23t Social welfare loss franchise value 2010, 30t in monopoly, 178 history of, 61t in monopsony, 345f, 345–347 stadium financing in, 325t Socony-Vacuum Oil Co, United States v., St. Louis Rams, 27t, 28t 178n, 374n St. Petersburg Paradox, 160–161, 161t Soderling, Robin, 498t Stadium naming rights, 24, 124–126, 127, Soft drink advertising revenues, 121t, 130 127n, 295 Soriano, Alfonso, 339t, 405 Stafford, Matthew, 339t Sosa, Sammy, 227, 227n Stallworth, Dante, 253 Spaghetti racquets, 191–192 Stango, Victor, 427t Spezza, Jason, 339t Staples Center, 126 Sponsorships, 124t, 128–129 Steinbrenner, George, 17–18 Sports agents Stern, David, 53t, 214–215 Alabama regulation of, 458 Steroid-free nutritional supplements, appearances, 455 274 competition among, 464 Stevens, Jerramy, 248t, 248–253 contract law, 463 Stewart, Tony, 257–258 contracts (See Contracts) Stimulants, 266, 269n, 271–272 corrective, preventive measures, 461–464 St. Louis Cardinals, 34t endorsements, 129n, 129–130, 454–455, Stoops, Bobby, 390t, 390 456t Stosur, Samantha, 498t financial management by, 456–457 Strickler, Steve, 496t multiple club negotiations, 452–454 Strikes, lockouts, 441 in NCAA, 458, 464, 477 Student tickets, 110–111 on-field performance improvement, 452 Subsidies overview, 13–14, 451, 463–464 community facility, 328t, 329t player smuggling by, 455 franchise, 296–297, 297f player’s union supervision, 462–463 Suh, Ndamukong, 339t principal–agent problem, 451, 457–461 Sullivan, Billy, 185–186 reputation of, 462 Sumo wrestling, 235–236 role of, 14, 451–452 Sunday Night Football, 142–143, 143f salary negotiation, 452 Suspensions, implicit fines, 248, 249t Sports books (bookies), 204–205, 209n Suzuki, Ichiro, 398t, 399n Sports Broadcasting Act of 1961, 139–141, 140t, 142t, 188 Tagliabue, Paul, 32, 33t, 338n Sports business Talent.SeeInsurance of player talent advertising, promotion (See Advertising, Tampa Bay Buccaneers, 27t, 28t promotion) Tampa Bay Devil Rays antitrust policy (See Antitrust policy) broadcast revenues, payrolls 2001, 22t broadcast rights (See Broadcast rights) capital appreciation of, 34t

Subject Index 525

history of, 59–60, 60t age limits in, 478t, 480 posting system use by, 398t, 398 steroid policies, 271–272, 279 Tampa Bay Lightning, 31t Tracking chips, 225 Tampa Bay Rays, 30t, 324t Trademarks, 23, 183 Taylor, Fred, 457 Tressel, Jim, 390t, 391 Team quality Tseng, Yani, 496t competitive balance in, 25 (See also Turning pro early Competitive balance) age limits, 477–480, 478t insurance of (See Insurance of player athletic development, 468–469 talent) benefits, 470–471 selecting, 25–26 changed market conditions, 471 Tedford, Jeff, 390t costs, 468–470, 469t Teixeira, Mark, 339t decision process, 468–471, 469t Tennessee Titans economic model of, 473–476 attendance, performance 2010, 27t educational development, 469 franchise value 2010, 28t enjoyment of college life, 470 practice facility naming rights, 124 injuries, 470–471 repeat offenders policy, 248t, 248–254, leaving high school, 480–481 253n, 254n maturity, 469–470, 480–481 Tennis.SeealsoAssociation of Tennis NFL draft results, 471–473, 473t Professionals (ATP); Women’s Tennis overview, 14, 467n, 467–468, 468n, 481 Association (WTA) personal performance reduction, 471 age limits in, 479 poor team performance, 471 gender discrimination in, 497–498, 498t professional earnings, 470 racial discrimination in, 492 Turtle Bay Resort, 96t Tennis Anti-Doping Program, 272 Two-part pricing, 104t, 106f, 107 Tennis Australia, 237 Tyler, Jeremy, 480–481 Texas Rangers bidding for Zito by, 386 U-grooves, 192–193 broadcast revenues, payrolls 2001, 22t Uncertainty capital appreciation of, 34t bidding and, 146–147 franchise value 2010, 30t expected utility model calculations, 4–5 history of, 60t (See also Expected utility model) payrolls in, 7t in multiyear contracts, 408–410 stadium financing in, 324t overview, 4–5 Thomas, Hallis, 269–270 in turning pro early, 476 Thomas, Marcus, 244–246 Unions.SeeCollective bargaining; Players’ Thompson, Alexis, 479–480 unions Thurman, Odell, 248t, 248–253 United States Football League v. NFL, Ticket scalping, 110f, 110–113, 113n 189–190, 190n Title IX (gender equality) United States Golf Association (USGA), impacts on coaches, 502–503, 503t 192–193 interest accommodation test, 501 United States v. Socony-Vacuum Oil Co, 178n, NCAA compliance, 499–500 374n overview, 14, 498–504 United State Tennis Association (USTA), program expansion test, 501 191–192 proportionality test, 500 University of Alabama, 410, 458 Tomlinson, LaDamian, 459 University of Southern California, Toronto Blue Jays 371–372 broadcast revenues, payrolls 2001, 22t Upshaw, Gene, 338n, 435 capital appreciation of, 34t U.S. Open Tennis Championship, 146–147 franchise value 2010, 30t USA Network, 146–147 history of, 59–60, 60t USFL (United States Football League), 9 stadium financing in, 324t Utah Jazz, 29t Toronto Maple Leafs, 6t, 31t Toronto Raptors, 29t Valverde, Jose, 428t Torre, Joe, 228 Vancouver Canucks, 31t Trachsel, Steve, 168 Van Pelt, Bo, 496t Track and field Verdasco, Fernando, 498t

526 Subject Index

Vick, Michael, 129–130, 248t, 248–256, 253n, Weis, Charlie, 395 256n, 456 Welfare triangle, 178 VIP Connection, 210 Welki, A. M., 93–95 Von Neumann-Morgenstern utility function, West, Delonte, 249t 161–163, 162f White v. NCAA, 377 Wie, Michelle, 469–470, 479–480, 496t Wachovia, 126 Wilfork, Vince, 251 Wade, Dwayne, 456t Williams, Roy, 248t, 248–252 Wagner, Billy, 411–412 Williams, Serena, 498t Walker, Todd, 426–427, 427t Williams, Venus, 226, 498t Walk-on players antitrust litigation, 376–377, Williams and Bullocks L.L.C., 456 377n Winner’s curse, 145–146, 146f, 147f, Waltrip, Michael, 230 295–296 Wang, Chien-Ming, 427t, 428t Wolfers, Justin, 234–235 Warner, Kurt, 167 Women’s Tennis Association (WTA) Warrior Sports, 193 age limits in, 478t, 479 Washington, Kermit, 248, 249t commissioner’s salaries, 52 Washington Capitals, 31t gender discrimination in, 497–498, 498t Washington Nationals.SeealsoMontreal Wong, Mary Roy, 456 Expos Woods, Tiger, 205–206, 227, 273, 456t capital appreciation of, 33–35, 34t World Anti-Doping Agency (WADA), franchise value 2010, 30t 263–264, 265 history of, 61t World Cup Skateboarding, 480 Nationals Park ﬁnancing, 325–326 World Football League, 189 stadium ﬁnancing in, 325t Wozniacki, Caroline, 498t Washington Redskins Wrestling, 502 attendance, performance 2010, 27t franchise values, 6t, 28t Yang, Amy, 496t multiyear contracts with, 405 Yao Ming, 339t Washington Senators, 59–60 Youzhny, Mikhail, 498t Washington Wizards, 29t, 472 Watson, Bubba, 496t Zambrano, Carlos, 393, 418–419 Weapons charges, 254–255, 255n Zito, Barry, 383, 385, 386, 387t, 413, 453 Weinke, Chris, 467, 467n Zlatoper, T. J., 93–95 Weir, Mike, 205–206 Zvonareva, Vera, 498t

Author Index

Adams, W., 196 Choi, J. P., 63, Alexander, D. L., 44, 115 Ciecka, J., 84 Allen, W. D., 262 Clapp, C. M., 303 Andersen, T.N., 507 Coase, R. H., 152, 156 Araujo,I.C.,337, 356 Coates, D., 95, 303, 319, 450 Areeda, P., 436, 450 Cochran, J. J., 319 Ashman, T. D., 381, 430 Conlin, M., 404, 507 Asinof, E., 234 Coulombe, S., 508 Coulson, N. E., 319 Baade, R. A., 290, 303, 314, 316, 319, 336, Crompton,J.L.,319 356 Crooker,J.R.,84 Baimbridge, M., 156 Curry, J., 240 Balfour, A., 84 Cymrot, D. J., 507 Balsdon, E., 240 Banaian, K., 430 Dawson, P., 156, 304, 319 Barget, E., 303 DeGennaro, R. P., 45 Baumann, R., 316, 319 DePasquale, C., 25, 26, 44 Becker, G. S., 219, 240, 262, 507 Depken, C. A., II., 45, 84, 303, 507 Bellemore, F.A., 507 DeSchriver,T.D.,136 Bergmann, T. J., 450 Digler, A., 286 Berri, D. J., 21, 45, 84, 85, 95, 116, 381, 404 Dinardo, J. E., 286 Birren, G. F.E., 186, 196 Dixit, A., 391, 404 Blair, R. D., 25, 26, 44, 48, 63, 102, 115, 128, Dobson, S., 84 150, 152, 156, 175, 196, 350, 361, 366, 381, Dohrman, G., 466, 439, 450 Dorman, G., 351 Bodvarsson, O. B., 430, 507 Drape, J., 240 Bollinger, C. R., 174 Duggan, M., 235, 240 Borick,C.P.,337, 356 Duqette, G. H., 466 Bradbury,J.C.,15, 64, 84, 196, 286, 303, 404 Durrance, C. P., 25, 26, 44 Brastow, R. T., 507 Dworkin, J. B., 450 Brock, J. W., 196 Dye, R. F., 319 Brook,S.L.,84, 381, 404 Brown, L. J., 190 Easton,S.T.,450 Brown, R. W., 368, 381, 507 Eber, N., 286 Burgess, P.L., 427, 430 Eckard,E.W.,84, 381 Bursik,P.B.,337, 356 El-Hodiri, M., 64 Emerson, P.M., 507 Cain,L.P.,84 Cameron, S., 156 Fainaru-Wada, M., 282, 286 Carlino, G., 319 Falconieri, S., 156 Chang, Y-M., 84 Farmer, A., 404, 419, 427, 430

527

528 Author Index

Faurot, D. J., 404, 430 Jacobson, J., 351 Fehr,S.A.,196 Jensen, P.E., 136 Fenn, A. J., 84, 85 Jewell, R. T., 507 Ferguson,D.G.,116 Johnson, A. T., 304 Fielding, L. W., 466 Johnson, B. K., 304 Findlay, D. W., 507 Johnson, C., 507 Fizel, J., 313, 430 Jones, G. A., 507 Fleisher, A. A., III., 45, 361, 366, 381 Jones, J. C. H, 116, 508 Fong, L., 240 Ford,J.M.,507 Kahane,L.H.,84 Forrest, D., 156, 217 Kahn,L.M.,64, 361, 381, 417, 450, 508 Fort,R.D.,15, 45, 64, 67, 68, 70, 73, 84, 85, 86, Kanazawa, M. T, 508 116, 197, 304, 319, 337, 356, 450, 507 Kaplan, D., 327, 336, 356 Freitas, R. E., 196 Kaserman, D. L., 48, 63, 102, 115, 150, 152, Frick, B., 84, 286 156, 175, 196, 366, 381, 439, 450 Funk.J.P.,508 Kendall, T. D., 262 Kepner, T., 240 Gabriel, P.E., 507 Kern, W., 44 Gandar, J. M., 157 Kesenne, S., 45, 64, 84, 116 Gerrard, B., 136 Knowles, G., 45 Gill, A., 507 Koning, R. H., 85 Glazer, A., 231, 240 Krattenmaker, T. G., 181, 196 Goddard, J., 84 Krautmann, A. C., 21, 45, 84, 85, 95, 116, 352, Goff, B. L., 45, 361, 366, 381 430 Goldfein, S., 196 Gouguet, J., 303 La Croix, S. J., 507 Gould, J., 420, 430 Laband, D. N., 319 Greenberg, M. J., 303 Lambrinos, J., 381, 430 Grenier, G., 508 Lande, R. H., 181, 196 Groothuis, P.A., 304, 450, 484, Landes,W.M.,420, 430 507 Larsen, A., 85 Gustafson, E., 84, 313, 430 Lavoie, M., 319, 508 Gwartney, J., 507 Le Dressay, A., 116 Lee, Y. H., 64, 84, 85 Haddock,D.D.,84, Leeds, E. M., 127, 128, 136 Hadley, L., 84, 85, 313, 430 Leeds, M. A., 127, 128, 136, 150, 156 Hakes, J. K., 303 Lehn, K., 174, 196 Hanssen, F.A., 507 Lentz, B. F., 319 Harris,C.B.,337, 356 Leonard, W. M., II., 507 Harrison,C.C.,363, 381 Leonard, J., 382 Harrison,J.L.,350, 361, 363, 381 Lerner, A., 350 Harrison, T., 450 Lertwachara, K., 319 Haugen, K. K., 286 Levitt, S. D., 235, 240 Haupert, M., 45 Lewis, M., 508 Haworth, C., 507 Long, J. G., 337, 356 Haynes,J.S.,128, 450 Longley, N., 508 Heckelman, J. C, 240 Longo, A., 304, 319 Herndon, J., 186, 196 Lopatka, J. E., 186, 191, 196 Hill, J. R., 450, 484, 507 Hinshaw, C. E., 157 Maennig, W., 286 Hirshleifer, D., 231, 240 Marburger, D. R., 404, 427, 430, 431 Hirshleifer, J., 231, 240 Mason, D. S., 466 Horowitz, I., 84, 15 Matheson,V.A.,314, 316, 319, 336, 356 Hotchkiss, J. L., 174 Maxcy, J., 64, 85, 417 Hovenkamp, H., 175, 196, 436, 450 McAfee, P. R., 384, 404 Hudson, I., 319 McAllister, S., 430 Humphreys, B. R., 70, 84, 95, 262, 303, 319, McCann, M. A., 484 507 McClain, D. L., 240 Hylton, K. N., 175, 196 McCluskey, J. J., 262

Author Index 529

Meehan, J. W., Jr., 45, 85 Sanghoo, B., 63 Meggyesy, D., 466 Sauer, R. D., 201 Miles, S. E., 507 Sappington, D. E. M., 466 Miller, L. K., 466 Schmalensee, R., 152 Miller, P.A., 45, 85, 336, 356, 431 Schmidt, M. B., 45, 85, 381, 404 Molitor, C. J., 484 Schmitt, R. L., 507 Mondello,M.J.,85, 304 Scoggins, J., 427, 430 Morgenstern, O., 160, 174 Scoville, J., 450 Mulligan, J. G., 116 Scully, G. W., 45, 64, 67, 73, 85, 351, 431, 508 Nadeau, S., 508 Sherony, K., 45 Nash,J.F.,Jr.,392, 404 Shmanske, S., 116, 496, 508 Neale, W. C., 45 Shubnell, L. D., 337, 356 Nelson, R. A., 45, 85 Siegfried, J. J., 157, 319 Noll, R. G., 15, 64, 67, 95, 116, 156, 196, 290, Simmons, R., 156, 217 292, 304, 319, 337, 356, 450 Skeath, S., 391, 404 Slack, T., 136 Owen, J. G., 304, 337, 356 Sloane, A. A., 450 Smith, D. R., 136, 507 Palomino, F., 156 Soebbing, B. P., 45 Parent, M. M., 136 Sommers, P.M., 431 Parkin, M., 15, 18, 45, 307, 466 Spenner, E. L., 85 Partridge, M. D., 507 Spurr, S. J., 484 Pauwels, W., 116 Stango, V., 404, 419, 427, 430 Pecorino, P., 404, 419, 427, 430 Stanton, T. J., 507 Pedace, R., 508 Steinberg, L., 466 Peel, D. A., 45 Stewart, K. G., 116 Perloff, J. M., 132, 457, 466 Stigler, G. J., 230, 240, 345 Perri, T. J., 484 Surdam,D.G.,85, 156, 404 Petersen, J. E., 337, 356 Sutter, D., 86 Philips, L., 384, 404 Sykuta, M., 196 Pickard, J. L., 337, 356 Szymanski, S., 15, 45, 64, 156, 157, 197, 240, Pistolet, I., 127, 128, 136 337, 356 Pitts, B. G., 466 Porter,P.K.,84, 116, 297, 304, 313 Tainsky, S., 45, 286, 508 Preston, I., 240 Thayer,M.A.,240 Prinzinger, J., 382 Thomas, C. R., 297, 304 Thomas, D. A., 45 Quinn, K. G., 337, 356 Tollison, R. D., 45, 187, 197, 361, 366, 381 Quirk, J., 15, 45, 64, 67, 68, 70, 73, 84, 85, 197, Tolone, W. L., 507 304, 319, 337, 356, 450 Tolsdorf, F., 286 Tygiel, J., 508 Raethz, L., 337, 356 Reid, C. E., 507 Utt, J., 86 Richardson,T.V.,45, 85 Roberts, G. R., 197, 466 Varian, H., 384, 404 Robinson, J., 345 Vicente-Mayoral, R., 84 Rockerbie, D. W., 397, 450 von Allmen, P., 150, 156 Rodriguez. G., 319 von Neumann, J., 160, 174 Romano, R. E., 361, 381, 439, 450 Rosen, J. S., 484 Walsh, W. D., 508 Ross, S. F., 197 Walton, H., 304, 319 Rottenberg, S., 45, 70, 85 Welki, A. M., 95 Ruseski, J. E., 262 Whitehead, J. C., 304 Whitney, J. D., 86 Sakovics, J., 156 Williams, L., 282, 286 Salop, S. C., 181, 196 Williamson, O., 152, 157 Sanders, S., 84, 85 Willig, R., 152 Sanderson, A. R., 85, 290, 303 Wilson, D. P., 45, 84

530 Author Index

Winfree, J. A., 45, 197, 262, 286, 484, 508 Zimbalist, A. S., 15, 45, 86, 157, 197, 290, 292, Winkler, S., 86 304, 313, 319, 326, 337, 356, 382, 397, 450, Wolfers, J., 217 508 Zirin, D., 15 Yates, A. J., 240 Zlatoper, T. J., 95 Yost, M., 64 Zuber, R. A., 157