The Economics of Sport
  • Sports Economics
  • About
  • Workshop
  • Media
  • Selected Publications
  • Book Reviews
  • A Primer on Gaelic Games
  • Upcoming Events
  • Education
  • Resources & Links
  • Data

Revenue Sharing and Competitive Balance in the GAA

18/2/2014

 
By Paul O'Sullivan
On page 36 of his recent report to the GAA’s Annual Congress, GAA director general, Paraic Duffy outlines what he believes is an imperfect system of financial re-distribution from the GAA’s Central Council. Mr Duffy is quoted in this
Irish Times article
as saying that “We treat all of our counties exactly the same. We give Leitrim the same direct financial support as we give any of the large-population counties. I think there’s an issue of fairness here.” 

Duffy’s argument is that the ‘weaker’ counties, with lower population and funding resources, must incur similar levels of
expenditure to ‘stronger’ counties in terms of travel, meal and medical costs, as well as having to fund players’ expenses for travelling to training from large population areas. Consequently, Duffy would like to see “a county like Leitrim or Longford…… getting more money from us. Some of the bigger counties……could do with less from us”.
 
With the current redistribution system, ‘stronger’ counties are already subsidising the ‘weaker’ counties as most  Central Council gate revenue is generated by the former, yet distributed equally among all counties. In economics jargon, weaker counties are net beneficiaries from the revenue pool.

This idea of re-distribution is usually justified in terms of ‘promoting competitive balance’. Many sports have some form of revenue-sharing mechanism or constraints on talent accumulation, e.g. salary caps and player drafts, that seek to minimise the gap between the large/rich and small/poor clubs in order to‘level the playing field’ and maintain fan interest. 

If such a proposal were to be implemented, would it be successful in improving the outcomes, in terms of playing success, of weaker counties? One of the biggest problems for many GAA counties is that their talent pool is restricted by geographic location and there is no transfer market as in professional sports. Given these constraints, providing more financial resources may not translate into much greater playing success, however ‘success’ is defined. 
 
While Duffy talks in general terms about amending the re-distribution mechanism, and rightly foresees complaints from those that would have their funding cut, he offers little indication as to what criteria might be used to assess whether one county receives more than another. While the report makes reference to differences in population size, the number of clubs in the county and what division of the National League a county is in, what other criteria might be used? Previous spending? Average attendance at home games? The number of championship games won over a given time period? As well as this, if counties are to receive different allocations, how much different will these  allocations be? Whatever criteria are used, the GAA will need to ensure that there are no perverse incentives whereby a county may find it in its interests not to exert maximum ‘effort’ on the field in order to benefit financially. 
  
As Gaelic football and hurling are amateur games for players, the GAA cannot impose a salary cap to control spending on talent.  Instead, Duffy talks about regulating spending on county teams. As it is likely that the interests of Central Council will be in direct conflict with those of many county boards, it will be interesting to see how successful the GAA would be in effectively tracking all spending on teams and what penalties would apply to those counties that break any spending regulations. 

Comments are closed.

    Archives

    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013

    About

    This website was founded in July 2013.

    RSS Feed

    Categories

    All
    American Football
    Athletics
    Baseball
    Basketball
    Behavioural Economics
    Boxing
    Broadcasting
    Competitive Balance
    Cricket
    Cycling
    Darts
    David Butler
    Declan Jordan
    Drugs
    Ed Valentine
    Epl
    Expenditure
    F1
    Fifa World Cup
    Finances
    Funding
    Gaa
    Gaelic Games
    Gambling
    Game Theory
    Gary Burns
    Geography
    Golf
    Greyhound Racing
    Guest Posts
    Horse Racing
    Impact Studies
    John Considine
    John Eakins
    League Of Ireland
    Location
    Media
    Mls
    Mma
    Olympics
    Participation
    Paul O'Sullivan
    Premier League
    Regulation
    Research
    Robbie Butler
    Rugby
    Simpsonomics
    Snooker
    Soccer
    Spatial Analysis
    Sporting Bodies
    Stephen Brosnan
    Swimming
    Taxation
    Teaching
    Technology
    Tennis
    Transfers
    Uefa
    Ufc
    World Cup
    Wwe

Related

The website is not formally affiliated to any institution and all of the entries represent the personal views and opinions of an individual contributor. The website operates on a not-for-profit basis. For this reason we decline all advertisement opportunities. 

Contact

To contact us email sportseconomics2013@gmail.com or find us on Twitter @SportEcon.