The Economic Analysis Of Professional Sports League

Generally speaking, the researchers who investigated the economic analysis of professional sports league attempted to answer the following questions:Why do people choose league system rather than other systems; How did the law of origin, development, survival, expansion and evolution of professional sports leagues happen in the real world and in the logic sense; How did professional sports league constrain or motivate various actions of the behavior subject within the Union; How did professional sports league determine the level of performance and ultimately affect its development, expansion and so on.In general, the answer from sports theory researchers to the question why there exists professional sports leagues is basically as "the presence of transaction costs leads to the emergence of professional sports leagues". However, as we study this issue further, we find that simply using the premise of transaction costs to explain the existence of professional sports league to answer the problem, for researchers, it is clearly a superficial, simplistic or lazy approach. Because economic theorists had reached more profound ideas on the nature of enterprise, and they corrected the shortcoming of Kos's enterprise theory, meanwhile, its pioneering work has been further developed. In the premise of generalized transaction costs, some economists have adopted a number of other specific factors to replace the transaction costs, which can more clearly explain the specific system.Through investigating the historical data of well-developed professional sports league in relatively fast growth rates and some in the initial stage, we found that Professional Sports Leagues are basically in the situation of development of virtuous circle, and the growth trend of "league Fortune" in the world.From the development of History of Economic Thought, the economic theory considered the "surplus" as main contents of economic research. Therefore, our discussion revolved around the idea that professional sports league generated "surplus". Given the special nature of professional sports fields, we believe that except for the additional economic surplus in the process of establishment, survival, development and expansion of professional sports leagues, there must be other surplus, which we called it as "League Surplus" in this paper.The methodology of this paper is mainly based on new institutional economics, by using the theories of institutional change, property rights theory, transaction costs and enterprise theory, collective action and state theory and other new institutional economics as analytical tool, the authors did some original research on the origin, survival, development and expansion of professional sports leagues. In this paper, the specific research methods include:methodological harmonic between individualism and collectivism; combination of normative analysis and empirical analysis; Counterfactuals method; comparative institutional analysis as well as experience and case study.This article is divided into five parts. The first part is introduction, which mainly to clarify why we need to study this problem and the basic ideas. The second part is the research methods and assumptions, focusing on specific methods of this study and auxiliary assumptions.The third part of this article is theoretical research and empirical studies. The elaboration part of assumption can be considered as preliminary research, and the outcome of it form theoretical system of professional sports league. Firstly, the concept of organization, system, professional sports league and league surplus were defined; Secondly, the author elaborated specific meaning of auxiliary assumptions; Finally, based on the above analysis, the paper made out the model description and theoretical analysis of the model. Furthermore, using the development history of National Football League history as an example, it made out the observed verification on the above discussion.The fourth part is the revelation from evolution in foreign professional sports league on the process of reform and development in professional sports league in China. Firstly, we discuss the relationship between morphology of professional sports league and league surplus as well as distribution; Secondly, we discussed the modality selection of professional sports league; Finally, we studied the surplus creation and distribution of professional sports league in China.The fifth part is the conclusion of this article which specifically include:(1) Simply using the factor in transaction costs is hard to logically explain the reason of origin, survival, development and expansion of Professional Sports League; (2) Making the reasons attributed to the creation and distribution of league surplus is a more satisfactory explanation for the origin, survival, development and expansion of Professional Sports League; (3) The system surplus, knowledge surplus, economic surplus and surplus externalities of Professional Sports League remaining depend on and support to each other; (4) We should pay attention to the creation and distribution of league surplus in the reform and development of Professional Sports League in China.The paper implemented the basic idea of "put forward hypothesis-empirical application and experience-derived policy implications". The main innovation and value of this paper can be summarized as:(1) Presented an analysis of theoretical framework of Professional Sports League; (2) Combined the sports factor of sports training into economic analysis of Professional Sports League; (3) Put forward the author's own view on the origin, survival, development and expansion of professional sports league by applying the basic theory of economics; (4) The reference on the writing style of Smith, Marx, Marshall, Zhang Wuchang and other economists; (5) Put forward some points on reform and development of professional sports league in China, through using the outcome of Western economic theory and combing with the actual situation of China.In my opinion, the deficiency of this paper include the following aspects:(1) Because of the lack of relevant information and data, the research contents lack of formal and quantitative analysis; (2) Though we have a certain understanding of reform and development of professional sports in China, the argumentation on the generation and distribution surplus of Professional Sports League is not very sufficient which affect the depth of thinking on the problem.