Competitive Balance Theory: Evolution and Essay

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This is in direct contrast to the efforts afforded by the leagues to try to reduce competitive advantage all around. One reason why the teams with larger media and crowd resources do well could be the fact that as more talented players are able to move into free agency, they seek higher and higher compensation and attention through larger media and crowd outlets (Grant, 1991). A very talented player may not want to play in a small town because there would theoretically be less exposure to media and fans, and as a marketable good or commodity, that player knows that his or her talent would not be compensated for as well as it could be in a larger town.

The basis for argument with Rottenberg's presentation of competitive advantage mitigation lies in the basic economic theories that govern other markets. It is only logical that these theories be applied to labor markets within sports leagues. Although many fans and sports enthusiasts were happy to see that changes intended to increase the competitive balance were enacted in many different sports leagues within the U.S., it remains to be see whether or not these change have resulted in much more than higher revenues and better labor conditions for the players and teams themselves.

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Other outside factors such as media coverage and the size of the team's fan base have much more of a direct impact on specific franchise revenues and their ability to attract talented, often expensive players to their team (Grant, 1991).

While Rottenberg's original ideas and feelings toward wanting to help level the competitive edge that some teams had over others is rather idealistic and optimistic, in reality, there will always be methods for leagues, teams, and individual players to maximize their own revenues and salaries in the face of unfair competitive advantages. Professional sports is such a huge industry and has so much political and economic clout in countries like the United States that it is questionable whether or not the leagues and players will ever really agree to subject themselves to labor and economics policies designed to encourage perfect competitive balance. All economic theories begin to break down in an imperfect world, and so long as there are other distinct incentives for leagues, teams, and players to enact or even throw out policies intended to foster competitive balance, it will likely remain that maximized or perfect competitive balance is an ideal yet to be achieved......

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