The Economic Consequences of Foreigner Rules in National Sports Leagues

Markus Lang, Alexander Rathke and Marco Runkel ()

No 908, Working Papers from International Association of Sports Economists, North American Association of Sports Economists

Abstract: This paper provides a contest model of a professional team sports league and analyzes the impact of a restriction on foreign players. It shows that a league with binding restrictions on foreign talent for all clubs is more balanced than a league without binding restrictions on foreign talent. Moreover, the wage level of domestic (foreign) talent is higher (lower) in a league with a binding restriction on foreign players. Finally, a tighter restriction on foreign players increases profits of all clubs.

Keywords: Team Sports Leagues; UEFA's Homegrown Rule; FIFA's 6+5 Rule; Competitive Balance; Player Salaries (search for similar items in EconPapers)
JEL-codes: L83 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2009-06
New Economics Papers: this item is included in nep-spo
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: THE ECONOMIC CONSEQUENCES OF FOREIGNER RULES IN NATIONAL SPORTS LEAGUES (2010)
Working Paper: The Economic Consequences of Foreigner Rules in National Sports Leagues (2009)
Working Paper: The Economic Consequences of Foreigner Rules in National Sports Leagues (2009)
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