The extent to which sports leagues can make their own rules has a long history in sports law. This is complicated by the competing and often contradictory objectives from owners, some of whom are profit maximizers, while others are sportsmen owners who simply want to field a winning team. In the hopes of creating competitive balance, many leagues have adopted a myriad of rules – including revenue sharing, salary caps, and player drafts – which can have unintended consequences. While a league may believe it is acting in a pro-competitive manner, because franchises must collaborate to reach these agreements, some league decisions may run afoul of antitrust laws.
SportsEconomics analyzes the entire range of economic issues that arise in antitrust cases, including market definition and market power, market structure and entry conditions, pricing and other conduct affecting competition, profitability, liability and damages. We identify key issues, apply appropriate economic and financial theories, and use empirical techniques to develop independent and objective analyses and opinions.
Click here to link to our case study: Antitrust Liability
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