Showing posts with category "college sports"

3 Big Soccer Transfers We’re Predicting To Happen In Spite Of COVID-19

With the leagues halted and crowds dispersed, our soccer itch can only be scratched by one thing: transfer talk. Some would argue coronavirus has left teams too reserved to splash the cash. But some players are just too talented to miss out on. Here are three major transfers about to happen, in spite of Covid-19. Timo Werner With Bundesliga resuming amidst the pandemic, it’s clear Timo Werner’s final days at RB Leipzig will be behind closed doors. The 24-year-old German international is a consummate goal-getter with lightning-quick pace: scoring 88 goals in 123 appearances. And his surprisingly low £52 million […]

May 20, 2020
tags
soccer

NCAA Sanctions and Economic Impact

TSE readers know that we here at TSE roll our eyes at economic impact claims regarding sports and economic development.   So when I saw that the governor of Pennsylvania was filing suit against the NCAA regarding the sanctions handed down on Penn State, I raised an eyebrow Spock-wise. The projected loss to the state's economy combined with the hit to Penn State's prestige are the basis for Gov.  Tom Corbett's lawsuit to have the sanctions, including a $60 million fine and a four-year ban from lucrative postseason bowl games, thrown out. Legal and strategic questions notwithstanding, we're talking about an […]

May 12, 2020
tags
economic impact

Cubsidies: The Cubbies Want in on the Subsidy Action

The ownership of the Chicago cubs want to restore Wrigley Field and, surprise, surprise, surprise, they want public funding.  Here's Phil Rogers of the Chicago Tribune: The round figure being thrown around for Wrigley updating is $500 million, with $300 million going to the ballpark itself and $200 million going to the long-proposed "triangle building'' adjacent to the park. It has been reported that the team will construct the building itself but would like about $150 million in public funding to help pay for the ballpark improvements. Here's what Rogers has to say on the subject of economic impact: You […]

May 12, 2020
tags
Uncategorized

Ice Hockey Success in the Sun Belt

A couple of weeks ago I was contacted by John Miller about a story he was writing on the Phoenix Coyotes. As readers of EZDzine are well aware, evidence that sports franchises and stadium and arena construction generate large impetus to economic growth and urban development exists only in the minds and reports of consultants to sport franchises and their rent-seeking employers. Subsidies for such activities is especially troubling when city and state budgets are in disarray with service reductions and layoffs of public employees from teachers to police and firefighters. Miller's story, Taxpayers take the puck, describes […]

May 12, 2020
tags
economic development

Is an exit fee a barrier to entry?

The big news out of the ACC is that Noitre Dame has been unanimously voted in as a member of the conference... in every sport but football (of course) and hockey.  The not-so-big news in the grand scheme of things is that the ACC voted 10-2 to increase its exit fee from $20 million to more than 2.5 times that amount: $50 million. One of those two naysayers was Maryland's president Wallace Loh.  Loh voted against the increased exit fee because it could be seen as a barrier to entry by some who may otherwise want to join the ACC […]

May 12, 2020
tags
college sports

Harsh Punishments, but No Death Penalty, for Penn State

The NCAA has hit Penn State with harsh penalties as punishment for the Jerry Sandusky case.  Penn State is put on probation for 5 years, is banned from bowl games for 4, loses numerous scholarships, is fined $60 million, and has the dreaded "vacating wins" penalty imposed on it (for the period 1998-2011).  It's players are allowed to transfer without penalty, which is also a penalty for Penn State football because it makes it easier for players to leave. No doubt about it, these are harsh penalties, and they seem appropriate to me.   There's no death penalty because of […]

May 12, 2020
tags
college football

From Monopsony to Arbitration: Time to get Paid

♪♫I just got paid today, got me a pocket full of change♫♪ Last week saw the day by when arbitration-eligible players and their teams had to exchange final offers in Major League Baseball.  Baseball uses a variant of what is known as final offer arbitration, a type of arbitration (suggested by economist Carl Stevens in 1966) where the arbitrator renders a decision restricted to being one party's offer or the other's.   The word "final" is a misnomer in MLB since players and their teams may continue bargaining until a decision is rendered, so those offers really aren't final. One […]

May 12, 2020
tags
Uncategorized

The Death Throes of the Big XII?

In what has to be the most unsurprising development in college athletics, Texas A&M has officially sent notice to the Big XII that it wants a divorce.  Apparently fed up with the Texas-centric economics and politics of the conference, A&M wants out. This is no small thing.  Texas A&M has been one of the premier schools in the conference.  Their traditions and the passion of their football fans is legendary, as is their rivalry with Texas, not to mention that they field very competitive teams in many sports.  If the Aggies can get upset enough to leave the conference, something's […]

May 12, 2020
tags
college sports

What Makes a College Coach Overpaid?

From the Bleacher Report, we have a list of 20 coaches who are supposedly being paid too much. College football coaches make incredible amounts of money in today's football-obsessed society. Schools want wins and they want a lot of them. They want conference championships and national championships. And they're willing to pay for them. According to a study conducted by USA TODAY, at least two-dozen head coaches made more than $2 million in 2010. Doesn't that seem ridiculous? There is no doubt that these men work extremely hard in an excruciatingly competitive field, but many are overpaid. Here are the 20 most-overpaid […]

May 12, 2020
tags
coaching salaries

NFL Even MORE Competitively Balanced than We Thought

With the NFL regular season having reached its (customarily gripping) climax moments ago, sports economists will take note, as usual, of the within-season competitive balance measures, based on the end-of-season standings.  The figures generated from these measures are often used in the literature on the effectiveness (or otherwise) of labor market and revenue-sharing policies used by leagues to maintain/improve competitive balance.  On the basis of these measures, it is generally accepted by sports economists that the NFL has been the most competitively balanced (on average) of the four major leagues over the last few decades.  However, there is continued debate […]

May 12, 2020
tags
Competitive Balance

Football and University Priorities

At Northeastern, a private university in Boston, the college football model wasn't working very well.  Expenses averaged $3.5 million, and attendance was just 1,600 fans per game from a student body of over 20,000.  After a two year review of the athletic department, the decision was made to drop the sport.  Shira Springer describes the fallout in two articles in today's Boston Globe.  One focuses on the institution at large, the other on the players, many of whom transferred.  The negative fallout appears to be modest.  Those with ties to the program are understandably upset with the institution's change in priorities.  But as Springer […]

May 12, 2020
tags
college football

Planned vs. Spontaneous Order in Sports/Entertainment

Eric Parsons sends me this link to an Kansas City Star article about the need for an annual subsidy on the order of $10-$15 million to keep Kansas City's Power and Light (P&L) District financially viable.  The P&L District is a retail and entertainment area in downtown Kansas City located across the street from the gleaming Sprint Center, itself in the news at times for not having a major sports tenant. The city first gave the OK to the P&L in 2006 with nearly $300 million in bonds floated to cover the project.  Back then, it was expected  to be […]

May 12, 2020
tags
Uncategorized