This paper provides a game-theoretic model of a professional sports league and analyzes the effect of luxury taxes on competitive balance, club profits and social welfare. We show that a luxury tax increases aggregate salary payments in the league as well as produces a more balanced league....

Transfer restrictions have a long tradition in professional sports but came under heavy attack in recent years (e.g. Bosman ruling, Monti system). Based on a bargaining model with stochastic player productivity, we show that more restrictive transfer rules reallocate ex post bargaining power...

The release of players from a club to the national team often leads to a conflict concerning the duration of the players' stay with the national team. Based on a theoretical bargaining model, we examine whether intervention in this conflict by a governing body is desirable. We show that...