Junior Management Science, Volume 3, Issue 1, March 2018<\/p>\n
Niklas T. Bretschneider, Otto Beisheim School of Management (Bachelorarbeit)<\/strong><\/p>\n<\/div> Abstract It starts with defining the new system, before introducing its background and a brief history of revenue sharing in the Bundesliga. Then this thesis sketches the most important concepts in sports economics, i.e. competitive balance and demand, before pointing out interdependencies between them. Afterwards, revenue sharing is introduced as a means to enhance competitive balance, including a brief description of alternative mechanisms. To compare the new model externally, revenue sharing models of other major sports leagues are presented. Finally, it evaluates the Bundesliga\u2019s current situation in order to comprehend the league\u2019s potential objectives. The thesis discusses possibilities on how revenue sharing can help the Bundesliga achieve those objectives, and ultimately assesses the new system\u2019s feasibility in doing so. After modelling the league\u2019s potential reaction to different revenue sharing models, its result is that the four-pillar model features several useful mechanisms, but does not give sufficient weight to them. The thesis\u2019 assessment consequently is that the reformed system can be generally seen as positive, with room for further enhancements. It concludes with some starting points for potential future improvements, namely (1) increasing the equally-distributed share, (2) scaling up the new pillars\u2019 relative importance and mitigating the danger of an overdominant team, and (3) implementing a top-to-bottom maximum payout cap.<\/p>\n<\/div> Keywords:\u00a0TV Revenue Sharing, Four-Pillar Model, Bundesliga, Football, Soccer, DFL<\/em><\/p>\n<\/div>
\n<\/strong>This thesis assesses the Bundesliga\u2019s recently introduced TV revenue sharing system. Despite the prominent literature discussing the relationship between revenue sharing in team sports and competitive balance, evaluations of specific distribution systems are limited. Hence, very little is known about the repercussions of different allocation keys on leagues and clubs. Contributing to the sports economics literature, this thesis examines the key decision factors that influence the effectiveness of revenue sharing systems, and analyses the feasibility of the Bundesliga\u2019s reformed system.<\/p>\n