Professional Team Sport Leagues in Australia III


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Sports Economics


This lecture, the second of three on 'Professional Team Sports Leagues in Australia', follows on from the previous one insofar that the 'unrestricted' model under the assumption of win-max (AFL) [and compared to profit-max (Major Leagues)], is now 'restricted' with common past and present policies used to ensure competitive balance. These policies include, draft/zoning/reserve clause; salary cap (and minimum salary); gate-revenue sharing; and league-revenue sharing. As we see, the conclusions on the effectiveness (or otherwise) of these policies varies greatly depending on the scenario involved. Copyright 2012 La Trobe University, all rights reserved. Contact for permissions.