Sport, Economics, and Finance

This chapter focuses on the economics and finance of professional team sports. The business models of individual pro sports teams and pro sports leagues are considered and the key issues of the sporting and financial viability of teams and leagues are discussed. Four approaches to studying the business of professional team sports are identified: allocative (i.e., mainstream) economics; corporate finance; strategic management; and radical political economy. It is argued that only the radical political economy approach sets the business of sport in its social, cultural, and historical context but this approach has had a very limited influence within the sports economics literature. The chapter then considers three ongoing debates in sports economics: the motivation of team-owners; the role of league regulation; and innovation and the Moneyball story.