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NBA Fans Give the League a Predictable Present on Christmas

Before labor peace came to the NBA, it was not uncommon to hear stories that the lockout was going to negatively impact fan interest in the game (here is one example in this genre). The story basically went as follows:

1. Fans become angry when the games are taken away.
2. The longer fans go without games, the angrier they become.
3. Stay away too long and the angry fans will never come back.

This story actually gets repeated every time a labor dispute that taken away games in North American sports. And the story certainly seems plausible.

A few years ago, though, Martin Schmidt and I investigated the impact disputes have upon fan attendance; and much to our surprise (yes, we tended to believe the stories sports writers had told us for years) we failed to find an effect. Attendance in the major North American sports is not statistically impacted by labor disputes. Read More »





A Free Market Solution (from Europe) to the Labor Problems in North American Sports

The following is a guest post by David Berri, a Professor of Economics at Southern Utah University. He is also the lead author of Stumbling on Wins, the general manager of the sports-economics blog Wages of Wins, and is a frequent contributor to the Freakonomics blog.

Soon after presents are opened on Christmas morning, the NBA – after a lengthy lockout – will finally open its 2011-12 season with a slate of five games. Although NBA fans are pleased the lockout has ended, they’d probably prefer that it had never happened. Unfortunately for fans of pro sports in North America, such disputes frequently cause games to be missed. But maybe there is a free market solution to this problem to be found in, of all places, Europe.

Although we tend to think such disputes are a contest between labor and management, frequently the real conflict – as noted in my recent posts here — is between small and large market teams. In North American sports, team revenue seems to depend on the size of the market where the team plays. Read More »





Why the NBA Players Keep Losing to the Owners

The following is a guest post by David Berri, a Professor of Economics at Southern Utah University. He is also the lead author of Stumbling on Wins, the general manager of the sports-economics blog Wages of Wins, and is a frequent contributor to the Freakonomics blog.

In the past couple weeks I have written about labor negotiations in the NBA and the recent labor agreement in Major League Baseball. Now that we have agreements in both sports, thanks to the new NBA deal, I would like to address why the two unions involved in these negotiations have historically achieved such different outcomes.

Let’s begin with how the outcomes are different. Read More »





Labor Peace in Baseball May Not Last Forever

The following is a guest post by David Berri, a Professor of Economics at Southern Utah University. He is also the lead author of Stumbling on Wins, the general manager of the sports-economics blog Wages of Wins, and is a frequent contributor to the Freakonomics blog.

Last week I looked at the labor negotiations in the NBA. Since then, the NBA appears to have reached an agreement with its workers, ending the latest dispute in professional North American sports.

Over the last three decades, labor disputes have become a common feature in professional sports. In fact – as The Wages of Wins indicated– relative to non-sports industries, labor disputes are about 25 times more likely in professional sports. So the recent lockout in the NBA was hardly surprising. Read More »





The Economic Battlefield of the NBA Lockout

The following is a guest post by David Berri, a Professor of Economics at Southern Utah University. He is also the lead author of Stumbling on Wins, the general manager of the sports-economics blog Wages of Wins, and is a frequent contributor to the Freakonomics blog.

With the NBA away, sports fans are looking for something to satisfy their need to watch teams strive for victory. Well, why not take a look at the teams competing in the lockout? Okay, maybe this is a contest only a sports economist could love. But while it may not appeal to everyone, the labor dispute is still best thought of as a contest between two teams.

The first team is the NBA owners. The owners are the dominant buyer in the world market for elite basketball talent, so they have substantial monopsony power. In the other corner are the players, who are currently trying to disband their union. This union gave the players monopoly power in the sale of elite basketball talent (more specifically, in helping to determine the conditions under which individual players would sell their services). When a monopsony meets a monopoly on the economic battlefield, the outcome is determined by bargaining. Read More »





The Sports Economists Answer Your Questions

Readers’ sports questions answered. Read More »





How About a Free Market for College Athletes?

In 2010, CBS and Turner Broadcasting agreed to pay $10.8 billion to broadcast the NCAA men’s basketball tournament from 2011 to 2024.  As a result of this contract, fans of this tournament can watch these games on four different networks.   And perhaps more importantly (for those of us who work during the day), we can see these games on our computers in our offices.

Certainly all these games make us fans very happy.  And all that money has to make coaches, athletic directors, and other university administrators happy.  But what about the people we are actually watching?  

The people on the court are referred to as student-athletes.  And according to the NCAA rules, these athletes are supposed to be amateurs.  In other words, other than a scholarship, these athletes are not supposed to be paid. Read More »





Is Changing the Coach Really the Answer?

Much of the focus today on college football is on the teams at the top.  Will Notre Dame win the national title and finish undefeated? Can Alabama win another championship?  Then there are the 34 other bowl games.  In all, 70 teams have an opportunity to finish the year as a winner.

For those without this opportunity, though, this past season was a disappointment.  For these “losers,” the focus these past few weeks has been strictly on preparing for the next season.  And part of that preparation appears to be changing the head coach.

Already, at least 25 schools have announced that the head coach from 2012 will not be on the sideline in 2013.  For some, this is because a successful team lost their coach to another program.  In many instances, though, teams have asked a coach to depart in the hope that someone else will alter their team’s fortunes. Read More »