Question

Discuss some of the reasons why both fans and owners want competitive balance. (econ of sports)

Answer 1

Competitive balance among the competing teams is critical for successful of sports in USA:

• First, Competitive balance leads to evenness in distribution of players in different teams. Unbalanced competition will lead to scenario where only team would be successful in hiring all great players, thus it will kill uncertain outcomes of match and people will grow less inclined to attend matches.
• Second, balanced competition will keep people excited and interested which is critical for future of sports.
• Third, Sponsorship would be available to all team easily and profitably.

Thus, Competitive balance is important for keeping sports alive in USA.