ECC2450 · Sports economics

Overview

The purpose of this unit is to understand how economics affects sport. We begin by focussing on the importance of sport to the economy. Microeconomic principles are then applied to various sports in order to understand the concept of comparative advantage in sport, whether ticket prices are set to maximise profit, and whether the method of ticket distribution leads to scalping. The sports broadcasting rights market is analysed to help explain the growth in sports leagues revenues. Sports leagues not only set player rules and fixtures, but negotiate the business side of sports such as TV rights, collective bargaining agreements, strategic location of teams, and public subsidies. Whether clubs and teams are profit maximisers or win-maximisers is important, because this can impact outcomes in sport and whether sports league policies are effective. Evenness of competition is a goal of many sporting bodies, commonly known as the uncertainty of outcome hypothesis. This gives rise to consideration of the concept and measurement of competitive balance, and the effectiveness of policies to address competitive imbalance, such as reverse-order player drafts and the invariance principle, team salary caps, gate revenue sharing, league revenue sharing, league expansion and contraction, and relegation and promotion. The player labour market is analysed to explain player pay, and tournament theory is used to explain rewards in individual sports. A much-debated issue is the economic impact of mega sports events and the case for government subsidy. Case studies of professional team sports leagues and individual sports in Australia and overseas are used throughout to illustrate the application of the economics principles developed in the unit.

Offerings

Assessment

The Handbook does not list a final examination among the assessment items. That is not a guarantee there is none.

Assessment details may change. Please refer to the assessment information in Moodle closer to the start of the teaching period.

Requisites

Learning outcomes

1. analyse how economics affects stakeholders in both individual sports and team sports leagues
2. evaluate the impact of different government, sporting organisation, league, and club policies on the sports industry
3. compare and contrast how different institutional arrangements and organisational practices impact on sport in Australia and overseas
4. apply the economic principles learned to identify and analyse issues in sport and present workable policy solutions.

Workload

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. You are expected to complete all pre-class activities prior to your scheduled class, and post-class activities should be completed after your scheduled class. Learning activities may include a combination of teacher directed, peer directed and online engagement activities.

Student experience, not official rules. Nothing here changes what the Handbook says.