Roger G. Noll tries to investigate
the essence of broadcasting rights and team sports. He examines that what kind
of competition affects are there on revenues, coverage as well as competitive
balance, with regards to sales of rights and commercial television. The article
has included an argument that if sales of rights are not centralized by leagues
and television gets more commercial, then it is good for the consumers. But it
was concluded in the end that teams, which are financially weak, they may not
get any benefit from this competition as well as rights sales’ centralization,
and if still leagues wants to do it, then policy intervention is a must for
this centralization.
The article has also analyzed three
different aspects related to economics of broadcasting with regards to team
sports. The first aspect is sports rights demand, and the second one is sports
rights supply for leagues as well as teams keeping centralization in view, and
third aspect is to see that what changes in performance are there for sports
industry and broadcasting industry keeping the policy in view. The high income
nations get a lot of revenues from television broadcasting, like in Europe; the
revenue growth has increased in last few years in terms of television
broadcasting.
In the end, it was concluded that
most of the popular sports have been able to earn more revenues with the help
of television broadcasting. However, how this revenue growth will happen, it is
dependent on the fact that what the competition policy is, and what market
structure is there for rights. The information provided in the article is very
useful and insightful, not only for team sports teams and leagues, but for TV
broadcasters as well.