An Economic Comparison between North Amercan and European Sports Leagues

An Economic Comparison between North Amercan and European Sports Leagues

Length: 846 words (2.4 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

An Economic Comparing North American Sports Leagues with European Sports Leagues

For some Americans supporting a team or a club is a relaxing Sunday afternoon activity, for some this social event is a good excuse to be loud and let of some steam but for most Europeans supporting a team is a way of life. These people would do anything for your team to be successful. They would gladly go to every away and home game, buy all of their merchandise and get as many people as they can involved. This affects the amount of revenues clubs earn and their profitability. Many would argue that this is because of the cultural difference between Europe and America but in reality this is a result of an economic phenomena that is caused by the way the respective leagues are set up.

European leagues are considered as open, platforms not only because in European leagues teams can be relegated or promoted, but also in the sense of property rights and free entrance to all market sides. North American leagues, on the other hand, are organized as closed platforms with exclusive property rights and high entry barriers for major leagues. This difference explains why European clubs outperform their North American counterparts in terms of revenue generation and value creation, and why North American clubs are much more profitable than most European clubs.
The list below provides us with important numbers to get a better understanding of how European soccer clubs match up with American sports teams. As seen the top 6 clubs are all European, this is because European clubs “create wealth”.

Rank Team Revenue 2007/08
1 Real Madrid ...

... middle of paper ...

...n open platform the more games that enter form side B automatically increase the amount of interest in side A because more games are available. The more gamers that join in side A makes game developers more interested in entering through side B. This is how open platforms generate wealth and grow.
However these types of platforms are less profitable because the platform owners have less ways to profit because they are giving up a huge amount of their property rights. On the other hand in closed platforms property rights are much more concentrated. This property right concentration allows for values appropriation.
In closed platforms, on the other hand, property rights are much more concentrated. This property right concentration facilitates value appropriation.
How do sports leagues generate wealth?
These network effects are how sports leagues generate wealth

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Should Sports Leagues Do More Prevent Concussions And Other Sports Injuries?

- Should Sports Leagues do More to Prevent Concussions and Other Sports Injuries. As a kid, I wanted to try all types of sports. I played soccer, swimming, Basketball, and Flag Football, and after I did little league Flag football, I wanted to try the real thing. One of the sports with the highest amount of concussions and other injuries is Football, and that is why my parents never let me play it, as a kid, even though I wanted to. Today, I thank my parents for not letting get into football because, even at that young age, kids can get serious injuries, including concussions....   [tags: American football, National Football League]

Better Essays
1625 words (4.6 pages)

Drug Policies of the Four Major Sport Leagues Essay

- ... Each league has improved its policies in recent years, but the support for increased and better testing continues to grow. The MLB can require players to provide blood samples and the NFL had talks of taking blood samples during training camp in order to test for Human Growth Hormone (HGH), but the NBA and NHL have not applied these procedures in their programs (Calcaterra, 2013). Best Drug Policy The policies and procedures for drug testing within the four major sport leagues are changing rapidly, due to the rise of players using illegal substances....   [tags: leagues, players, testing]

Free Essays
725 words (2.1 pages)

Essay on Sports and Politics

- "Politics has come to be considered not only inappropriate in the arena of sports, but actually antithetical to it," Zirin says. "We want so much to see sports solely as an arena of play, not seriousness. But here's the thing, this can cheapen not only the greatness and relevance of sports to us as a society, but also the courage of the athletes" . The pursuit of fame, wealth and status can blind the human conscience, which is why it is important for us to encourage athletes to voice their opinions....   [tags: Sports]

Better Essays
1309 words (3.7 pages)

Sports in the Chicano/a Community Essay

- Sports are a major contributing factor in the Chicano/a community. It constructs ones gender by oppressing women due to their exclusion in partaking in sporting events as well as by providing an outlet for men to vent and regain their manhood. Delgado's article, “Golden But Not Brown” refers to Oscar de la Hoya and how some in the Chicano/a community view him as lacking masculinity; comparing him to “El Lion”, Julio Cesar Chavez. “El lion” evokes a more traditional and manly way of boxing which is an aggressive one while Oscar de la Hoyas involves more strategy and movement....   [tags: Sports]

Better Essays
1012 words (2.9 pages)

Women and Sports Essay

- In today’s society women are not allowed to play baseball with men due to patriarchal myths and misconceptions that have been around since the emergence of baseball in America. All women should be able to play baseball with men and there is no legitimate reason why they shouldn't. Women are physically, mentally, and emotionally capable of playing baseball just as men are. With that being said their biological sex or gender should not and does not affect their ability to play baseball in the company of men....   [tags: Gender Roles, Sports, Social Issues]

Better Essays
2765 words (7.9 pages)

Essay about Professional Athletes Get Into The Major Leagues

- Professional athletes get into the major leagues because it is an activity they love to do. Though some do go into the leagues mainly for the fame, these people are there because they feel they deserve to be there due to all their hard work and dedication. Although there are good intentions involved in the choices they choose to take, the means begin to vary in time. Every major sport is a competition of individuals to prove which of whom is the best suited for the time and occasion of the event....   [tags: Major League Baseball, Promotion and relegation]

Better Essays
809 words (2.3 pages)

Essay about Expanding Leagues, Expanding Cities

- Expanding Leagues, Expanding Cities Sports have always played a major role within societies. The area of Rome was the most populated area of the world during the time of the Roman Empire. The form of sport most demanded by the large population was watching two men fight till the death. These Gladiators were personified as larger than life beings and were able to captivate tens of thousands with a swing of a sword. People flooded to cities where they could watch these Gladiators fight. The popularity of these events grew so immensely stadiums were built that were able to hold over 80,000 screaming fans....   [tags: Sports Teams Essays Papers]

Better Essays
1970 words (5.6 pages)

Public Subsidies for Sports Facilities Essay

- Public Subsidies for Sports Facilities America is in the midst of a sports construction boom. New sports facilities costing at least $200 million each have been completed or are under way in Baltimore, Charlotte, Chicago, Cincinnati, Cleveland, Milwaukee, Nashville, San Francisco, St. Louis, Seattle, Tampa, and Washington, D.C., and are in the planning stages in Boston, Dallas, Minneapolis, New York, and Pittsburgh. Major stadium renovations have been undertaken in Jacksonville and Oakland....   [tags: Sports Athletics American Culture Essays]

Better Essays
3519 words (10.1 pages)

Essay on Sports History and Sports Halls of Fame

- Sports History and Sports Halls of Fame Below are websites dealing with sports history, particularly those halls of fame which exist. In the dead of winter, many people's interest turn to sports, and the nominees and inductees are announced for many halls, including professional baseball and professional football. Professional Baseball Hall of Fame This website discusses the National Baseball Hall of Fame in Cooperstown, New York. The site combines baseball history and the Hall of Fame itself....   [tags: Sports]

Free Essays
1428 words (4.1 pages)

Essay on Sports Media

- Sports of old were merely competitive activities rooted in heroism and romanticism. Sports activities today, however, have no such innocence or simplicity. Currently in America, the activities that make up our sports culture is not only the competitive events themselves but the processes and issues that underlie and surround them. Entwined in our sports culture is the giant business of mass broadcasting. Indeed, sports and the media go hand in hand like peanut butter and jelly, like Mickey and Minnie, Darth Vader and Luke....   [tags: Sports]

Better Essays
1050 words (3 pages)