STRIVING FOR COMPETITIVE BALANCE IN MAJOR LEAGUE BASEBALL: OPTIMIZATION OF REVENUE SHARING

Open Access
Author:
Hillen, Blair Matthew
Area of Honors:
Economics
Degree:
Bachelor of Arts
Document Type:
Thesis
Thesis Supervisors:
  • Mark Mc Leod, Thesis Supervisor
  • David Shapiro, Thesis Supervisor
  • Bee Yan Roberts, Honors Advisor
Keywords:
  • revenue sharing
  • Major League Baseball
  • competitive balance
Abstract:
This thesis takes a look at competitive balance, one of Major League Baseball’s most prominent issues, and how it can be remedied with revenue sharing and other instruments. The thesis starts off by analyzing market sizes to illustrate how competitive balance can be affected by inherent characteristics of a team. This analysis leads into the Blue Ribbon Panel that reported to MLB on this issue. The thesis dissects the findings and recommendations of this panel, and expands upon the analysis after the implementations that altered the revenue sharing program. Pros and cons are both evaluated in regards to the program, and other potential mechanisms are examined. This thesis then culminates into what seems to be the best possible solution to create more competitive balance in America’s pastime.