KTTA3220 Sports Economics (3 cr)
Description
Content
Sports have an enormous global footprint, with
billions of practitioners. In addition to recreational participants, there are also tens of
millions professional athletes. Sports equipment manufacturers sell billions of dollars
worth of gear to the public on the backs of sports idols, and companies pay hefty fees to
have their logos prominently displayed in international telecasts. The players on teams and
individual winners of major events can become international celebrities, with potentially
millions fans all over the world. In a supremely competitive environment, top athletes can
earn tens of millions of dollars a year in prize and promotional money. Modern sports
venues have also become mass entertainment centers, often subsidized from local tax
revenue. In all, even if one wanted to, it is hard, if not impossible, not to be cognizant of
some sports events in one’s locality. Sports are simply part of people’s daily lives all over
the world, with many associated socio-economic issues. This course in Sports Economics is
a wide-ranging introduction to the subject. During the course standard economic tools are
developed to analyze major aspects of professional and college sports. Prerequisite: One
year of university studies, no previous course work in economics is assumed.
Lecture Content:
While there is no required book, a recommended book is Rodney Fort’s “Sports
Economics” 3rd edition, on which the majority of lectures are based.
Section 1. Warm Up: The Business of Sports
Section 2. Demand and Sports Revenue
Section 3. The Market for Sports Broadcast Rights
Section 4. Team Cost, Profit, and Winning
Section 5. Sports Market Outcomes I
Section 6. Sports Market Outcomes II
Section 7. The Value of Sports Talent
Section 8. The History of Player Pay
Section 9. Labor Relations in Pro Sports
Section 10. Subsidies and Economic Impact Analysis
Section 11. The Stadium Mess
Section 12. Taxes, Antitrust and Competition Policy
Section 13. College Sports
Completion methods
25 hours of lectures, group discussions and exercises.
Assessment details
Active participation in the lectures, a final exam.
Learning outcomes
- apply basic microeconomic principles, such as supply and demand, competition,
opportunity costs, monopoly power, rate of return, etc., to explain and analyze the
business of sports.
- explain the choices of sports organizations, owners, players, and fans.
- explain the primary determinants of compensation and prize money to players and teams
in major professional sports.
- explain the economic impact and returns to investment of public dollars in the
development of new stadiums and sports arenas.
- have a better understanding of the role of sports in society.
Study materials
edition. Prentice Hall: London, UK.