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Sports Economics Uncut

Brian Goff

“Sport has the power to change the world.” Sports Economics Uncut expresses this insight from Nelson Mandela, exploring sports as a fascinating mirror of the world and a powerful agent of change. In it, Brian Goff covers subjects ranging from the ebb and flow of racial discrimination, to inequality, law enforcement, managers and risky decisions, club membership, and politics. Much more than merely a review or synthesis, this book extends existing perspectives and explores provocative questions such as: how systematic is racial bias in pro sports today? Is all racial segregation in sports due to racial bias? How much are college athletes really worth, and is league parity really optimal? 
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Index

Brian Goff

AAU see American Athletic Union
Abrahams, Harold 168
Abramovich, Roman 120
absolute advantage, for black athletes 80
abusive behavior 13940
ACC see Atlantic Coast Conference (ACC)
adverse selection 90
age eligibility rules 434
agency costs 116
Alabama 28, 129, 152, 162, 163
Alderson, Sandy 90
amateurism restrictions 16871
American Athletic Union (AAU) 168
American League 56, 116, 117, 129
American League pitchers 11617
Andujar, Joaquin 87
“arms race” metaphor 15052
Arsenal 12022, 133, 137
Aston Villa 122
athlete value 12, 14853
athletic skills 68, 73, 767
Atlantic Coast Conference (ACC) 91, 94
Auburn versus Alabama 26
Babe Ruth 72, 74, 123
Baltimore Colts 21
Baltimore Ravens 171, 172
Baltimore riots 84
Barnett, Larry 87
baseball
consumers 24
football and 1822
labor markets 11
metrics 107
national viewership of 19
see also Major League Baseball (MLB)
baseball’s integration 549
basketball revenues 1456, 149
BCS see Bowl Championship Series (BCS)
Beane, Billy 103, 107, 108, 114
Becker, Gary 39
behavioral economics 113
Beijing Olympics, viewership of 3
Belichick, Bill 102, 104, 136
decisions 1045, 107, 109
bias
customer 39
fan 40
manager 39, 40, 445
racial 3641, 6871
by age eligibility restrictions 434
black athletes 418
financial impact 43
in MLB 41, 45
in NBA 45
penalty for 58
umpire, in MLB 42, 45
Big 12 1613
big revenues
clubs 137
and low profits 1448
members 159
schools 163
sports 155
Big Ten 94, 125, 126, 16063
black athletes 44, 579
absolute advantage for 80
civil rights for 46
discrimination against 39, 40, 44, 468, 60
dominance 80
economic conditions 489
in MLB 378, 44, 53
on NCAA basketball 57
in NFL 37, 62
pay differences 46
percentage of 81
regional classifications 767
in sports 3740
young 81
black head coaches 4041, 46, 60
percentage of 62
performance difference 6061
black quarterbacks
intelligence 73, 74
median performance of 67, 74
passing skills 812
percentage of 656
professional ranks 68, 69
running skills 812
run-pass ratios 6971, 74
rushing yards per game 745
Blank, Arthur 117
Blatter, Sepp 164, 166, 167
Boise State football 130, 163
“Bosman ruling” 12
Boston Braves 56
Boston Red Sox 40, 54, 72
Bottlegate 84, 86
Bowie, Sam 105
Bowl Championship Series (BCS) 16061
Bowlsby, Bob 150
Brady, Tom 136, 150, 171, 172
Brand, Myles 118
Braun, Ryan 173
Braves 22
Brazil, regional classifications 76
Brees, Drew 150
“BRIC” nations 166
Bridgewater, Teddy 82
“Broken Windows” problem 978
Brooklyn Dodgers 546
Brown, Jim 44
Bruggink, Thomas H. 35
Buffalo, playoffs 127
Burkhart, Ken 87
Bush, Reggie 139
Byers, Walter 158, 159
cable telecasts 22
Caminiti, Ken 100
Canseco, Jose 100
Carlos, John 36, 46
Centrowitz, Matt 106
Champions League 136
Chelsea 122, 132, 133, 137
Chicago Cubs 22, 25
chronic poverty 49
City College of New York 57
civil rights, for black athletes 46
Clarett, Maurice 43
Clemson-Louisville 26
Cleveland Browns 44
Cleveland Cavaliers 95
Cleveland Indians 25, 40, 546
Cleveland, playoffs 127
club loyalty 28
club membership 8
coaches
black head see black head coaches
discretionary power 11718
expected points calculation 114
4th down decisions 104, 107, 10911, 114, 115
objectives 114
Coble, Drew 87
college athletics 141
expenditures 145, 147, 15052
college basketball
economic challenge 34
physicality 94
revenues 170
risk aversion 94
college coaches, salary for 143, 151
college football
economic challenge 34
live attendance 267
revenues 26, 170
college sports
challenges to change 16063
filling seats 152
fundamental fixes 1535
high revenues and low profits 1448
illicit payments 168
player value 14853
politics of 160
profitability 145
revenues 141, 143, 1456, 14950, 155, 160
salary for college coaches 143, 151
scandals in 13941, 144, 151, 153, 155
scheduling issue in 162, 163
scholarships 155
college sports fans 259
club loyalty 28
internet and 28
team affiliation 278
comparative advantage 80
and specialization 713
of young black players 81
competitive balance 123, 132, 135
competitiveness 122, 125, 13032, 162
competitive penalty 60, 62
competitive pressures 55, 56
complexity, of equality and inequality 12634
Conference Champioships, median and minimum scores 96
contracts 23, 25
correlation coefficients 124
corruption 164, 166, 168, 171
FIFA 1657
cost containment 152
costs and benefits 104
Crawford, Joey 91
Crimson Tide 28
Cuba, regional classifications 76
Cunningham, Randall 65, 71
customer bias 39
CVS, sports revenue for 1
Cy Young 110
Dallas Cowboys 18, 26, 69, 107, 135
Dallas Mavericks 91
decision makers 113
decision making, managerial 102, 1048, 110, 115, 117
defensive tactics 98, 99
“Deflategate” case 171
demand and revenue 151
Denkinger, Don 87, 88, 93
Denver, playoffs 127
DeZonie, Hank 45
disciplinary actions 91
discretionary power 11718
discrimination 14, 3740, 468, 66
against black athletes 44, 60
Doby, Larry 55
Dodgers 23, 40
domestic leagues 136
Dosh, Kristi 146
Duncan, Tim 91
durable consumption 67
earned run average (ERA) 42
Eaton, James W. 35
Eckersley, Dennis 110
economic analysis, of managers 108
economic challenge, college basketball 34
economic conditions, of black athletes 489
economic factors 79
economics of clubs 9, 11
economics of sports 1013
Elliott, Ezekiel 33
Entine, Jon 80, 83
Epstein, David 83
equality 1225, 130, 134
in NFL 126, 135
of outcomes 122, 1357
Yankees 128
see also inequality
ERA see earned run average (ERA)
European Championships of 2016 5
evaluation mechanisms, for umpires 90
Evans, Vince 69
expenditures, college athletics 145, 147, 15052
fan bias 40
Fédération Internationale de Football
Association (FIFA) 1648, 171
corruption 1657
FBI’s case 166
power 164, 1668
and money 168
revenues in World Cup Finals 1646
rules 136
Fiesta Bowl 130
FIFA see Fédération Internationale de
Football Association (FIFA)
financial advantages 120, 121, 128, 129, 131
“Financial Fair Play” (FFP) standard 136, 137
Fisk, Carlton 87
Florida football 132
Florida games 162, 163
Florida State football 132
football
and baseball 1822
players, revenue for 1456, 1489
telecasts, restrictions on 1589
and television 21
viewership of 1921, 33
foreign cash infusion 133
for-profit entity 146, 154
Fort, Rodney 123
4th down decisions 104, 107, 10911, 114, 115
Fox Sports 23
game attendance 135
game theory 106
Gant, Ron 87
Gee, Gordon 1534
Gilliam, Joe 71
Gini coefficient 123, 124, 145
Golden State Warriors 95
Goodell, Roger 33, 171, 172
governance structures 164
Green Bay Packers 135, 163
Griffin III, Robert 74, 82
Harbaugh, Jim 143, 148, 167
Harris, James 71
“head-hunting” bounties 117
Herfindahl Index 779, 125
Hernandez, Angel 89
high revenues, and low “profits” 1448
historically black colleges and universities (HBCUs), NFL players from 634
Howland, Ben 144
Hrbek, Kent 87
illicit payments, college sports 168
incentives 90, 91, 116
Indianapolis Colts 102, 1045, 171, 172
inequality 1225, 133
in NFL 127
optimal 1347
innovation 525
in management 6061
“S-shaped” dispersion of 524
intangible values 46
intelligence, black quarterbacks 73, 74
internal politics, and racial integration 62
International Olympic Committee (IOC) 166, 16871
growing power 169
internet, and college sports fans 28
IOC see International Olympic Committee
Irvin, Monte 56
Jackson, Peter 143
James, LeBron 143
Jones, Shawn 71
Jordan, Homer 71
Jordan, Michael 105
Kaepernick, Colin 36, 46, 48, 49, 75, 82
Kahn, Lawrence 68
Kelling, George 97
Kelly, Chip 115
Kentucky Wildcats basketball 278, 51, 589, 134
Kenyan runners performance 80
Kimeu, J. M. 83
Knight, Bob 118, 139, 140, 144
Kroger, sports revenue for 1
Kyle Field 151
labor markets, baseball 11
Lagat, Bernard 77
LaRussa, Tony 107, 110
LaSalle 57
Latin America, regional classifications 76
Latino participation 81
law enforcement
impediments to 939
risk aversion of leagues 94
role 856
league competition 137
Leicester City 12022
championship in 1969 134, 135
Levias, Jerry 39
Lloyd, Earl 60
Lombardi, Vince 116
London Olympics, viewership of 3
long-run revenue 162
lower revenue clubs 137
low profits, high revenues and 1448
low revenue sports 155
Lucas, George 143
Major League Baseball (MLB)
attendance 25
black players in 378, 44, 53, 62
competitive balance 135
competitive pressures 55
consumers 24
future fans 335
game between Cleveland and Oakland 89
integration 54
local television revenues 23
racial bias 41, 45
Reserve Clause 1112
resurgence 225
salary cap 129
team win probabilities 112
TV contracts 23, 25
umpire bias 42, 45
umpires 8990, 93
viewership for 20, 25, 33, 34
average age 34
white players in 378
see also National Football League (NFL)
manager bias 39, 40, 445
managerial decisions 102, 1048, 110, 115, 117
optimal 10811
uncertainty in 1067
managerial economics 115
managers
behavior of 115
costs and benefits 104
economic analysis of 108
objectives 11315
optimal decisions 10813
as politicians 11519
risk taking 114
Manchester City 122, 133, 137
Manchester United 122, 133, 137
Mandela, Nelson 1
market penalties 60, 62
market value, college athletes 148, 150, 152
Mays, Willie 44
McAuley, Terry 84
McNabb, Donovan 65
McPherson, Don 71
median performance, of black quarterbacks 67, 74
median scores
and minimum scores
Conference Championships 96
NBA Finals 96
NCAA final four games 95
Melvin, Bob 89
men’s basketball tournament
median scoring margins 312
viewership of 30
men’s sport 29, 30
see also women’s sports
Mets 22
championship in 1969 134, 135
Michaels, Alan Richard 19
Michigan versus Ohio State 26
Mickelson, Phil 143
Mid-American Conference (MAC) 126
Milwaukee Brewers, fan bases 135
Minnesota Twins 87
mistake pattern 8991
MLB see Major League Baseball
(MLB)
MLB Players Association (MLBPA),
politics of 1723
Monday Night Football viewers 1920
Moneyball 103, 107, 108
moral hazard 116
multinomial regression 79
National Basketball Association (NBA) 27, 33, 37, 128
age eligibility rules 43
black players in 378
finals
2017 96
median and minimum scores 96
“no tolerance” policy 97
players’ associations in 43
racial bias 45
rule and enforcement 96, 98
white players in 38
National Collegiate Athletic Association (NCAA) 28, 1534, 159, 168, 169, 171
basketball Finals, black players on 578
basketball tournament, annual TV revenue 1423
corruption 167
final four games, median score of 95
football and basketball, profitability of 148
men’s basketball tournament median scoring margins 312
viewership of 30
rules, violations of 139
women’s softball tournament median scoring margins 312
viewership of 30
National Football League (NFL) 37
age restrictions 434
attendance 33
black athletes in 37, 62
black head coaches in 4041
Championship game of 1958 217
coaches, performance difference 6061
consumers 24
economic challenge 34
equality 126, 135
inequality 127
officiating 113
players’ associations in 43
playoff appearances and consecutive runs 127
political economy of 171
quarterbacks 66, 689, 71, 128
passer ratings for 67
referees, mistakes 90
revenues 20
rise of 20
salary shares 14950
sports revenue 1
viewers 21, 26
National Football League Players Association (NFLPA), politics of 1712
National Hockey League (NHL) 91, 946
rule changes in 98
sports revenue 1, 149
National League Championship Series (1997), Game 4 of 89
national viewership of baseball 19
NBA see National Basketball Association (NBA)
NCAA see National Collegiate Athletic Association (NCAA)
Neale, Walter C. 12
Newcastle United 1223, 134
New England Patriots 103, 1045, 171
playoffs 127
New Orleans Saints 117
Newton, Cam 82
New York Giants 21, 26, 40, 54, 56, 108
New York Yankees 11, 56, 87, 123
equality 128
fan bases 135
performance 124, 128
winning percentage 1234, 128
NFL see National Football League (NFL)
NFLPA see National Football League Players Association (NFLPA)
NHL see National Hockey League (NHL)
Northington, Nate 39
not-for-profit entity 146, 147, 154
“no tolerance” policy 97
Notre Dame 26, 158, 1612
Notre Dame–NBC deal 160
Nurmi, Paavo 168
Oakland Athletics 110
Oakland Raiders 135
offensive tactics 94, 98
officiating 86, 9094, 97, 98
Ohio State football 129
and basketball, revenues 146
Olajuwan, Hakeem 105
Olympic events 76, 77, 79
see also running events
Olympic sports
amateur restriction 16971
countries televising 34
evidence from 7580
television rights revenues 169
optimal decisions 10813
expected points calculation 10910
salaries of closers and starters 11012
optimal inequality 1347
“organizational inertia” 47
organizational power 117
Oswalt, Roy 172
outcomes, equality of 122, 1357
Pac 8 conferences 158
Pac 10 160
Pac 12 162
passing skills
black quarterbacks 812
see also running skills
Paterno, Joe 118, 119
pay differences, black athletes 46
Payton, Sean 117
penalty 61
competitive 60
market 62
for racial bias 58
Penn State child abuse scandal 118
Penn State football 144
performance differences 668
black head coaches 6061
performance-enhancing drugs (PEDs) 172
performance measures 107
performance metrics 122, 123
performance statistics, Yankees 124
personal objectives 116
Philadelphia Eagles 115
Phillies 56
physical differences 80
physical endowment 712
and skills 68, 73
Pitino, Rick 139
Pittsburgh Steelers 135
playoffs 127
Platini, Michael 164, 166
player compensation, limits on 144
players
associations for
politics among 1713
salary for 152, 1545
skills 132
underpayment of 144
player share of revenues 150
player value 14850, 152
playoff appearances 127
policies, and equality 1378
policing 85, 913, 97
political economy, of NFL 171
politics
of college sports 160
of players’ association 1713
of sports 160
positional discrimination 66, 68, 72, 75
positional performance 68
power
of FIFA 164, 1668
of IOC 169
“Power 5” Conference 131, 1589
football revenues 142, 149
members 163
preferences of athletes 81, 131
pre-labor markets 80
Premier League 8
competitive balance 123, 132, 135
complexity of equality and inequality 12634
“Financial Fair Play” rule 1367
inequality 1226
optimal 1347
policies 1378
revenues of 12021, 1334
pricing policies 147
professional football
live attendance 267
viewers 33
professional ranks, black quarterbacks 68, 69
profitability 1456, 148
public goods 856
public policies 47
Qatar, World Cup in 165, 166
quarterbacks
black see black quarterbacks
NFL 669, 71, 128
salary share 150
white, median performance of 67
Quirk, James 123
race 43, 68, 80
positional differences by 68
racial bias 3641, 6871
by age eligibility restrictions 434
black athletes 418
financial impact 43
penalty for 58
racial differences 72, 80, 81
racial discrimination 81
racial integration 512
black players on NCAA finals 578
internal politics and 62
Kentucky Wildcats basketball 51, 589
penalty for racial bias 58
percentage of black coaches/players 623
pressures to 549
UCLA 58
racial progress 46
racial segregation 68, 72, 80
racial superiority 68
Radner, Roy 113
Ranieri, Claudio 121
Reagan, Ronald 86
“Red River” rivalry game 162
Red Sox 56
Reeves, Dan 117
regional classifications 767
regional differences 73, 76, 79
regional dominance 778
relative equality 124, 128, 1378
“relegation zone” 121
rent extraction 150
rents 147
revenue 170
basketball 159, 170
college sports 141, 143, 1456, 14950, 155, 160
football 26, 141, 143, 159, 170
players 1456, 1489
player share of 150
of Premier League 120, 121, 1334
revenue clubs 136, 137
Rice, Mike 139, 140
Rickey, Branch 55
risk 11415
risk aversion 114, 115
of leagues 94
Rivera, Mariano 11012
Robinson, Frank 45
Robinson, Jackie 7, 36, 37, 39, 40, 42, 44, 45, 47, 55, 60, 87
Robinson, Tony 71
Rodgers, Aaron 82, 150
Rodriguez, Alex 173
Romer, David 109, 114
“Rooney Rule” 41
Rose Bowl 4, 16061
Rottenberg, Simon 11, 128
Rugby World Cup of 1995 51
running events 76, 77, 79
running skills
black quarterbacks 812
quarterbacks 812
run-pass ratios, black quarterbacks 6971, 74
Rupp, Adolph 58
rushing yards per game, black quarterbacks 745
Russell, Bill 60
Saban, Nick 148, 154, 163
salary
of closers 11012
for college coaches 143, 151
for players 1545
“Samaritan’s Dilemma” 97
San Antonio Spurs 91
San Diego, playoffs of 127
Sandusky, Jerry 118, 140
scandals
in college sports 13941, 144, 151, 153, 155
in NCAA 153
Schelling, Thomas 72
scholarships 152, 155
Scully, Gerald 2, 11, 12
Seattle, playoffs of 127
SEC see Southeastern Conference (SEC)
segregation
of blacks and whites 66
practices 37, 39
racial 68, 72, 80
Sharapova, Maria 29
Shell, Art 40, 41, 60
shirking 116
Simpson, O. J. 44
skill differences 72, 73
slow-motion replay 92
Smith, Dean 97
Smith, Tommie 36, 46
Snowden, Edward 100
soccer 8, 88, 92, 98
soccer penalty kicks 106
socioeconomic factors 76
Southeastern Conference (SEC) 125, 126, 1613
Soviet bloc athletes 170
Spielberg, Steven 143
Sports Act of 1977 170
sports and society 459
sports consumers 710, 247, 30, 32
sports economics 1013, 135
sports leagues 12
sports revenue 12
sports viewership 19, 34
football 1921, 33
MLB 20, 25, 33, 34
“S-shaped” dispersion 524
Staubach, Roger 74, 81
Sterling, Donald 48
steroid use 99, 173
St. Louis Cardinals 87, 88
strategic games 106
Summer Olympic Games
gold medals 170
telecast 34
Sunday Night Football viewers 1920
Super Bowl viewers 1921
Supreme Court decision of 1984, for telecasts restrictions 15860
Tainsky, Scott 35
Taylor, Tyrod 82
TCU 130, 161
team affiliation, college sports fans 278
technology 923
televised sports 225
television
channels 4
contracts 23, 25
and football 21
viewership 26
Texas Longhorns 126, 129, 152, 1612
Texas Western 57
Thompson, Hank 56
Thorpe, Jim 168
ticket pricing mechanism 147
Tigers 56
Tiger Woods 46, 143
Title IX 155
Todd, Richard 71
Tomlin, Mike 61
transfers policies 147
UCLA 58
umpire bias 42, 45
uncertainty, in managerial decisions 1067
underpayment of players 144
Union of European Football Associations (UEFA) 164
University of San Francisco 57
University of Southern California (USC) 129
Veeck, Bill 55
video replay 84, 89, 92, 93
violence 48
WalMart 1, 3
Washington, Kenny 37
Washington Redskins 18, 39, 65
Watson, Deshaun 82
Weaver, Earl 107
weightlifting event 76, 79
Herndahl Index for men 78
Wendell, Turk 100
Western Kentucky University (WKU) 1256
whistleblowers 99100
white athletes
in sports 379
see also black athletes
white quarterbacks
median performance of 67
see also black quarterbacks
Whitlock, Jason 48
“Wild Card” playoff 129
Williams, Doug 65, 71
Williams, Serena 29, 31
Wilson, James Q. 97
Wilson, Russell 82
Wimbledon tennis, optimal strategy 113
Winfrey, Oprah 143
winning percentages 125
Yankees 1234, 128
win probabilities 112
Winton, Jameis 82
Wisconsin-Michigan games 26
WKU see Western Kentucky University (WKU)
Wolverines’ Michigan Stadium 25
women’s college basketball, consumer interest 32
Women’s National Basketball Association (WNBA) 29
women’s softball tournament, viewership of 30, 32
women’s sports 2933
consumer interest 3032
women’s tennis 2930
advantages of 31
women’s tour (WTA) 29
Women’s World Cup of 2015, viewers of 29
Wooden, John 58
World Cup Finals
Berlin water usage in Germany v Brazil 3
FIFA revenues 1646
Young, Steve 74, 81