FACT: “The most enduring tradition of the ancient sports is the Olympic Games, founded by the Greeks in 776 BCE. The ancient Olympics involved 200-meter and 400-meter sprints, the pentathlon, long jump, discus and javelin throwing, forms of athletic competition that have more immediacy for us than any other ancient sports. Ancient Greece was a patchwork of independent city-states and overseas colonies, frequently at war with each other. Each city would organize their own games, but festivals such as the Olympics were ‘Panhellenic’—open to all Greeks. Games were held in honor of specific gods (the Olympics for Zeus, the Pythian Games for Apollo, the Isthmian Games for Poseidon), and the sanctity of the Olympics was indicated by the requirement that all military engagements cease during the games so that soldiers could attend.”
Playbooks and Checkbooks:
An Introduction to the Economics of Modern Sports
by Stefan Szymanski
What economic rules govern sports? How does the sports business differ from other businesses? Playbooks and Checkbooks takes a fascinating step-by-step look at the fundamental economic relationships shaping modern sports. Focusing on the ways that the sports business does and does not overlap with economics, the book uncovers the core paradox at the heart of the sports industry. Unlike other businesses, the sports industry would not survive if competitors obliterated each other to extinction, financially or otherwise—without rivals there is nothing to sell. Playbooks and Checkbooks examines how this unique economic truth plays out in the sports world, both on and off the field.
Noted economist Stefan Szymanski explains how modern sporting contests have evolved; how sports competitions are organized; and how economics has guided antitrust, monopoly, and cartel issues in the sporting world. Szymanski considers the motivation provided by prize money, uncovers discrepancies in players’ salaries, and shows why the incentive structure for professional athletes encourages them to cheat through performance-enhancing drugs and match fixing. He also explores how changes in media broadcasting allow owners and athletes to play to a global audience, and why governments continue to publicly fund sporting events such as the Olympics, despite almost certain financial loss.
Using economic tools to reveal the complex arrangements of an industry, Playbooks and Checkbooks illuminates the world of sports through economics, and the world of economics through sports.
“Mr. Szymanski, an economics professor at the Cass Business School at City University in London, tackles the apparent paradoxes of the sports business in the head-on style of an N.F.L. linebacker. . . . He displays an impressive global knowledge of sports ranging from basketball and cricket to tennis and rugby, and provides a wealth of revealing financial information as well as entertaining sports trivia.”—Harry Hurt III, New York Times
We invite you to read Chapter 1 here: http://press.princeton.edu/chapters/s8888.pdf