Monday, July 30, 2007

Antitrust Analysis of Sports Leagues

Posted by D. Daniel Sokol

Gregory_pelnar With Barry Bonds approaching Hank Aaron's all time home run record in baseball, I thought this might be a good time to think about antitrust in sports more generally.  One recent contribution to the field is that of Gregory Penlar, a VP at economic consulting firm Lexecon.  His study is Antitrust Analysis of Sports Leagues: Part 1 - What is a Sports League and How are They Analyzed Under the Antitrust Laws.

ABSTRACT: This paper is the first of a four-part series on the antitrust analysis of sports leagues. It presents a brief history of the major North American sports leagues, discusses significant differences between leagues, reviews the cartel, joint venture, and natural monopoly theories of sports leagues, summarizes the antitrust laws (and their exemptions), discusses the steps involved in conducting per se and rule of reason analyses, and describes the types of economic evidence used to conduct an antitrust analysis of a sports league.

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