ON THE ECONOMY CHICAGOADVERTISING LIFE JUNE SUPPLEMENT 2018

Tanks for the Memories Winning and Losing in Sports and Life

he first academic appear to be following the same article ever written on game plan. sports economics was But is this an effective way to win by Simon Rottenberg, games and fan’s hearts and wallets? then at the University Last November a of Chicago. In his cover proclaimed with regard to seminal 1956 work, the Astros that “this World Series he said that: “The nature of the [sports] won’t be their last.” Given that 13 industry is such that competitors must be different teams have won the World ofT approximately equal size if any are to be Series in the 21st century, and no successful.” By “size” he was referring to team has ever won back-to-back teams having the same number of players championships, the smart money in and approximately equal payrolls and other Las Vegas won’t be on them to repeat germane factors, though in boxing, tennis, in 2018. and youth sports we also segment by age The NFL Cleveland Browns have and gender to ensure that there is some raised losing to an art form, stringing modicum of fair play. together ten consecutive losing He went on to say that some inequality seasons, and winning only a handful is desirable; that is arguably true in life of games in total in the last three alternative: promotion and relegation, a as well. seasons. Tanking, and thus securing the process that demotes—that is, relegates— top pick in the , doesn’t seem to have the worst teams in the higher division to a BY ALLEN R. SANDERSON made them a Super Bowl perennial. lower one, and the highest ranked teams This behavior—losing on purpose—is in a lower division are promoted to the Another ingredient for successful not new, and all leagues have had to premier division for the next season. competitions is that the outcome is confront it. And police it. In the 2012 When it comes to life or the economy, perceived as uncertain. Thus we go to some Summer Games in London, eight Asian the same principles and traits apply. On lengths to ensure that the matches are not female badminton players were disqualified one side of the table, tax attorneys and fixed and that players or teams are trying for tanking their matches so they could accountants make their livings in part to win—but not trying too hard, such as in receive a better seeding in a subsequent by being able to find “redder” short-run the case of steroid use, intentionally injur- round of play. In the 2011 NFL season, pastures for their clients. On the other ing an opponent or, let’s say, the fans of several woebegone franchises side, the IRS, Department of Labor, New England Patriots. exhorted their teams to “Suck for Luck”— Social Security Administration and other This last assumption—that both sides losing on purpose so they could move up government agencies monitor earnings and are trying to win—has received mention in the draft and acquire the consensus best various public transfer programs to ensure this year, as some franchises have been player, Stanford’s . compliance with statutes and that other- accused of losing on purpose—“tanking”— Over time, the NBA has tweaked its wise eligible recipients are reporting their to gain some advantage in subsequent draft several times to dissuade teams from incomes, looking for work, or are actually years, including receiving a better prospect sitting their stars and going on embarrass- disabled. Our willingness to assist the less in the draft. The ing season-ending losing streaks; there will fortunate is tempered when there signs of champion are one example certainly be yet one more adjustment in tanking—“gaming the system”—among of this strategy, losing more than 100 place for 2019. beneficiaries. games in three consecutive seasons Part of the problem, obviously, is the In sporting competitions and in life we (2011-2013), followed by 92 losses in draft itself and the disincentive to win. struggle in deciding how much to take 2014 before beginning their ascent. The leagues award the worst team the first away from the successful and give to the Locally, the finished last selection in each round and the top team less fortunate. We often don’t object to in their division from 2010 to 2014 before the last pick. Thus we are rewarding failure some level of inequality or redistribution as their recent rise to glory. The rest of our and incompetence while punishing success, long as there is agreement and reasonable local franchises have substituted the term all in the name of parity. Maybe we should certainly that the process—at both the top o “rebuilding” for tanking but otherwise adopt the European sports leagues’ and the bottom—is fair.

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