Sport Economics 2400-ZEWW1012
Sport, from the perspective of economic theory, is a field of human activity that lies at the intersection of various fields. For most of society, engaging in sport is a form of recreation and an active way to spend leisure time, while for others, sporting activities or those related to sport are the primary source of livelihood. Mass sporting events are used by companies or institutions for marketing and promotional purposes. The aim of these activities will be to familiarize participants with the economic aspect of sporting activities. Practical aspects of the activities of sports clubs in Poland, Europe, and the USA will be presented, while on the other hand, the theoretical framework of the basic economic analysis of sporting activities will be presented. Often, during the classes, empirical research results in the field of analyzed sports economics will be referred to. The classes will have the form of a seminar. This means that the instructor appreciates active participation in the classes, and in particular, speaking and expressing one's own opinions on the discussed topics. Passing the classes will consist of writing a work on a topic related to the classes. It can be a theoretical or empirical work. Additional points can be earned for active participation in the classes, i.e., attendance and speaking on matters related to the substantive topic of the classes.
1. Sport as part of the economy [1]
- macroeconomic approach
- definitions of sport, statistical definitions of sport
- contribution of sport to GDP and the value added
- sports consumption by households
2. Legal foundations of sports activities [2]
- physical culture
- the Act on Sport
- sports clubs
- sports associations
- sports companies
- associations
3. The production of Olympic medals, or how to raise an Olympic champion? [3]
- neoclassical trade model and comparative advantages in sports
- study on the Summer Olympic Games
- study on the Winter Olympic Games
4. Microeconomic foundations of sports activities. The sports club as an enterprise. [4-5]
- microeconomic foundations
- sports club, its goals and sources of income in a traditional approach
- sports club as a company in the service sector for the population
- revenues and their sources (TV rights, ticket sales, advertising, etc.)
- costs of sports activities (salaries, event organization)
- market size and price discrimination
- taxes and subsidies for sports clubs
- profits, losses
- how professional clubs in top leagues function (England, Italy, Spain)
- why it doesn't work like that in Poland, local specifics?
- financial investments in sports activities
- sport as a marketing product, the role of advertising and sponsors
- empirical research results on demand for football tickets in Spain
- research on the relationship between payroll budgets and sports results
- economic convergence model and conclusions for the sports sector
5. The sports labour market [6-8]
- economic foundations of the labour market functioning
- the European sports labour market
- "Bosman Rule" and labour market deregulation
- evolution of sportsmen's income distribution over the years and their determinants
- the American sports market
- Professional sports leagues in the United States (North America)
- Structure of competitions
- Structure of the sports market
- tools for equalizing chances and the problem of competitive balance in sports
- players incomes and the economic consequences of "salary caps"
- the transfer system and the role of agents in the market
- sports stars
- economic justification for high salaries
6. Competitive balance and its impact on the attractiveness of sports competitions in the light of empirical results. [9-11]
- competitive balance
- Definition, Coase's Theorem
- The problem of measuring the degree of competitive balance in sports
- The strength paradox
- Distribution of profits between clubs and competitive balance
- Profit maximization model
- Maximization of utility model
- Small clubs against large ones
- Subsidies, revenue sharing (gate sharing)
7. The dark side of sports [12]
- ethics, sports ethics code
- corruption, fixing sports competition results
- doping, causes, economic justification
- motivation for corruption, corruptive actions, economic justification for a propensity for unethical behaviour
8. Mass sport [13]
- recreation,
- social functions of sport,
- amateur sports leagues
- participation model in sports
Type of course
Course coordinators
Learning outcomes
Upon completion the course, the participant:
KNOWLEDGE
Knows economic models for analyzing phenomena occurring in sports S2A_W06
Can recognize an economic problem related to sports S2A_W06.
SKILLS
Is able to use an economic model to analyze economic and social phenomena in the area of sports
S2A_U04, S2A_U07
Can write an analytical scientific paper using the knowledge acquired during classes S2A_U09, S2AU_10.
SOCIAL COMPETENCES
Based on the presented interpretations of the obtained results, can be critical of the presented results S2A_K04, S2A_K07.
Assessment criteria
The participant is required to be present during classes. In accordance with the provisions of paragraph 33 of the Study Regulations at the University of Warsaw, students absent during classes must submit a request to the instructor to justify their absence without undue delay. Absences exceeding 3 are not justified and result in the student not being classified.
The grade for the classes will be given based on the student's independent work or work in a group. Credit - presentation of a selected study or one's own empirical work. An additional condition is the timely submission of the credit paper.
Completion of written work (80%), activity during classes (20%).
Bibliography
Sport as a part of the economy
Barry Burgan, Trevor Mules (1992) Economic Impact of Sporting Events, Annals of Tourism Research
Barbara Liberda, Paweł Strawiński, Iwona Świeczewska, Łucja Tomaszewicz (2011) Sport Satelite Account for Poland 2006
Phillip Hone (2005) Assessing Contribution of Sport to the Economy
Legal foundations of sports activities
Ustawa O sporcie z 25 czerwca 2010 z późn. zm.
Ustawa Prawo o stowarzyszeniach z 7 kwietnia 1989 z późn. Zm.
The production of Olympic medals
Moon-Jung Tcha i Vitaly Pershin (2003) Reconsidering Performance at the Summer Olympic and Revealed Comparative Advantage, Journal of Sports Economics vol. 4/3 pp. 216-239.
Pfau, Wade Donald (2006) Predicting the Medal Wins by Country at the 2006 Winter
Olympic Games: An Econometrics Approach, The Korean Economic Review vol. 22/2 pp. 233-247.
Microeconomic foundations of sport
Vladimir Andreff, Paul Staudohar (2000) The Evolving European Model of Professional Sports Finance, Journal of Sports Economics, vol 3/1.
Grant Thornton Finansowa Ekstraklasa
Demand for sport
Jaume Garcia Villar, Placido Rodriguez Guerrero (2002) The Determinants of Football Match Attendance Revisited, Journal of Sports Economics (2002), vol 3/1 pp.18-38.
Jaume Garcia Villar, Placido Rodriguez Guerrero (2009) Sport Attendance: A survey of the literature 1973-2007, Rivista di Diritto ed Economia Dello Sport (2009), vol 5/2
pp.111-151.
Stephen Dobson, John Goddard, Carlyn Ramlogan (2001) Revenue Convergence in the English Soccer League, Journal of Sports Economics (2001) vol. 2/3 pp. 257-274.
Stephen Hall, Stefan Szymanski, Andrew Zimbalist (2002) Testing Casuality Between Team Performance and Payroll, Journal of Sports Economics (2002) vol. 3/2 pp. 149-168.
European sport labour market
Bernd Frick (2007) The football players’ labor market: empirical evidence from the
major European leagues, Scottish Journal of Political Economy, (2007) vol 54/3
Mihailo Radoman (2015) Labor Market Implications of Institutional Changes in European
Football: The Bosman Ruling and Its Effect on Productivity and Career Duration of Players, Journal of Sports Economics, (2015)
American sport labour market
Stephen Ross (2003) Antitrust, Professional Sports and Public Interest, Journal of Sports Economics, (2003) vol 4/4
Craig Depken (2002) Free Agency and the Concentration of Player Talent in Major
League Baseball, Journal of Sports Economics, (2002) vol 3/4
Paul Staudohar (1998) Salary Caps in Professional Team Sports, Compensation and Working Conditions, (1998)
John Vrooman (2009) Theory of the Perfect Game: Competitive Balance in Monopoly Sports Leagues, Review of Industrial Organization (2009) 34:5-44
Economy of sport superstars
Shervin Rosen (1981) Economics of Superstar, American Economic Review, vol 71: 845-858
Moshe Adler (1985) Stardom and talent, American Economic Review, vol 75:
Lex Borghans, Loek Groot (1998)
Rodney Fort (2005) Sports Economics, Pentrice Hall.
Claudio Luccifora, Rob Simons (2003) Superstar Effect in Sport. Evidence from Italian Soccer
Journal of Sports Economics, vol 4/1
Nikolai Alan Christiansen, Hans Henrik Sievertsen
(2008) Exploitation of talent, Nationalokonomisk Tidsskrift 146: 319-326
Erik Lehmann, Gunther Schultze (2007) What Does it Take to be a Star? The role of Performance and Media for German Soccer Players, University of Freiburg Discussion Paper (2007).
Rachel Scarfe, Carl Singleton and Paul Telemo (2021) Extreme wages, performance and superstars in a market for footballers, Industrial Relations: A Journal of Economy and Society (2021), 60(1):
84-118.
Competitive balance
Andrew Zimbalist (2002) ”Competitive Balance in Sport Leagues”, Journal of Sports Economics vol. 3/2
Stefan Szymanski (2006) ”Competitive Balance in Sport Leagues and the Paradox of Power” Working paper
Rodney Fort and James Quirk (1995) ”Cross Subsidization, Incentives and Outcomes in Professional Sports Leagues”, Journal of Economic Literature, vol 23
Revenue sharing and competitive balance
John Vrooman (2009) The theory of Perfect Game: Competitive Balance in Monopoly
Sport Leagues, Review of Industrial Organization, (2009) vol 34
Stefan Kesenne (2000) Revenue Sharing and Competitive Balance in Professional Team Sports, Journal of Sports Economics, (2000) vol 1/1
Stefan Kesenne, Wilfred Pauwels (2002) Club Objectives and Ticket Pricing in Professional Team Sports, mimeo,
Stefan Kesenne (2006) The Win Maximization Model Reconsidered: Flexible Talent
Supply and Efficiency Wages, Journal of Sports Economics, (2006) vol 7/4
Dark side of sport
Holger Strulik (2008) Riding High - Success and the Rise of Doping Cultures, Leibnitz Universitat Hannower, Working Paper, (2008)
Mark Duggan, Steven Levitt (2002) Wining Isn’t Everything: Corruption in Sumo Wrestling, American Economic Review, vol 92/5 (2002)
Mass sport
Paweł Strawiński (2010) Economic determinants of sport participation in Poland, Rivista di Diritto ed Economia dello Sport, vol 6/3
Paweł Strawiński (2011) Społeczno-ekonomiczne determinanty aktywności sportowej, Wiadomości Statystyczne, (2011) nr 12
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: