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Sports Effect on Economic world

 Games ( football, cricket, Hockey, Olympic games,etc) also play a very good role in any country's Economy. 

Competitive Balance is one of the most important ideas within sports economics. This idea, in general, refers to the comparison of wins between all teams in a league. Rottenberg, effectively built this seminal idea with his interest in "dispersion of games won." Related to competitive balance is the understanding of different leagues and different team within those leagues objectives. Understanding the ownership structure and motives of front office personnel through their financial, read economic, decisions will reveal whether a team is looking to only generate profit, attempt to win a championship, or something entirely different. Making sense of human behavior through data is the central idea of economics and certainly applies to Sports Economics as well.

 Sports leagues look to promote competitive balance to make more games appealing to fans to watch, both in person and on TV. Many European leagues achieve competitive balance through promotion and relegation systems where multiple leagues are intertwined with teams moving between leagues based upon performance. Most sports leagues in the United States are standalone league and work towards competitive balance through other measures. These can include salary caps and roster size limits.

The Importance


                Sometimes Sports Economics can be dismissed as a side hobby for number crunchers. However, with the proliferation of globalized sports markets as well as the extreme rise in sports media, the economics of sport cannot be dismissed. In the United States, the Super Bowl regularly commands the attention of millions. In the EU, over 15 million people are employed in the sports world. On a larger scale, sports and sporting outlets provide immense health benefits as well as general satisfaction for a citizenry which are both prominent state concerns the world over. Another great feature of Sports Economics is the data rich environment that sports provide. In sports there are ample data sets provided from which economists can easily apply and investigate common economic models or problems, thus contributing to the field of economics at large.





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