The effects of broadcast on a team's market and on competitive balance from the perspective of fans maximizing utility

Abstract

We examine the decision of fans to attend the game or watch the exact televised match to address whether broadcast lowers revenue collected at the gate and worsens competitive balance. In most cases, broadcasts lower attendance and collection at the gate but do not necessarily worsen competitive balance. Weaker teams can benefit from broadcast revenue and catch up with their stronger counterpart. However, teams that make more money from broadcasts and a broad fan base can gain more advantages from broadcasts and worsen competitive balance.