Progressive taxation as a means for improving competitive balance

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The existing instruments for improving the competitive balance within a sports league, such as revenue sharing, restrictions on free agency and salary caps, all have their shortcomings. In this paper, we show that a progressive sports tax, the revenues of which are not redistributed to smaller teams in the league, could be a better instrument. From the broader perspective of the theory of optimum taxation, this instrument may have advantages as well.
Original languageUndefined
Pages (from-to)65-74
JournalScottish journal of political economy
Issue number1
Publication statusPublished - 2005


  • Sports economics
  • competitive balance
  • IR-58450
  • optimal taxation

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