The Economics of Sport

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Write an essay in response to the following instruction. The Word limit is 2000 words.
In professional team sports, the objectives of the owners of clubs and franchises are often thought to have serious consequences for the structure and regulation of leagues. Use economic theory to explain why this might be the case, and discuss the empirical evidence for this hypothesis.

Your essay should include the following:

• A discussion of the feasible objectives of owners of clubs in sports leagues. (Should account for about 10% of the essay)

• A theoretical section in which the statement above is subjected to an economic analysis. This section should include economic concepts/models used in the course. (Should account for about 40% of the essay).

• A section in which you subject the conclusions from the theoretical section with empirical evidence (i.e. data). (Should account for about 40% of the essay).
• A conclusion.

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