ECON 3306-001: Economics of Sports
Fall 2017
Course Syllabus
Instructor(s): Malcolm Kass
Office Number: COB 326
Office Telephone Number: 817-272-3221
Email Address:
Faculty Profile:
Office Hours: Monday 1 pm to 2 pmor by appointment
Section Information: ECON 3306-001
Time and Place of Class Meetings: MWF 10 am to 10:50 am, COB 241
Description of Course Content:
Basic economics principles applied to the analysis of professional and amateur sports. Topics include fan demand, advertising, team output decisions, league/conference organization, sports rules, and government regulations. The course is designed for both business and economics majors.
Student Learning Objectives:
-Understand how the demand and the supply for team products change with changes in the economic climate.
-To understand the decision making process of the team owners with and without market power. Examples include limiting the number of tickets sold, the number of team in leagues, and the reserve clause. Also will know legal challenges to monopoly power, specifically antitrust laws and the reserve clause
-Have knowledge of the issues of competitive balance for team owners and fans. Specifically the role of Coase Theorem and its role in debunking competitive balance argument for the reserve clause.
-Understanding the reasons for and against public financing of new sports facilities. Coupled with this is handling discounted cash flows and the different methods of financing, especially the role of fairness and efficiency.
-Understand the decision making process of the competitive and the monopolistic labor markets. Tied with this is knowledge of unionization and the economic and legal issues with competitive bargaining.
-Know the history and role of the NCAA and the student-athlete and the different issues with the NCAA’s tie to amateurism and its non-Profit status.
Class Description:
The first part of the class will focus on the industrial organization of sports. Here, we discuss why sports leagues exist, antitrust issues associated with sports and competitive balance. Next we will look at the connection between sports and public finance. In this topic we investigate how cities compete for professional teams and whether it is worth their while to do it. Then we will turn to sports and labor economics where we will discuss issues like why players earn such high wages and why players organize into unions. If have time, while amateur ad collegiate athletics will be discuss at different times during the year, we will delve into a more formal study of the NCAA.
Recommended Textbooks and Other Course Materials:
Textbook: The Economics of Sports, by Michael Leeds and Peter von Allmen. (5th Edition)
Calculator: A plain calculator will be sufficient, such as the one below.
Blackboard:
I will use Blackboard, an electronic learning software platform, for the distribution of course information. Go to
to log in. Be sure to check our Blackboard site on a regular basis for announcements, exam reviews, and other material related to class. There are detailed instructions on the use of Backboard that can be accessed at
Expectations for Classroom Behavior:
Class participation, questions, discussion are strongly encouraged. Please be respectful of each other, the instructor, and any guest presenters while in class. We are all here to learn! Any disrespectful or disruptive behavior may result in your being dismissed from class and/or an academic penalty.
All cell phones are to be silenced during class and not to be used. In addition, if you do show up late or leave before class is over, please sit in the back of the class and be as cordial to others as possible.
For this class, I will not allow open laptops given the current research about laptops and class performance. See the links below for evidence.
Failure to adhere to these classroom rules may result in your being dismissed from class and/or an academic penalty.
Prerequisites:
Econ 2306 or approval by advisor.
Grading:
Your final grade will be determined by 4 quizzes and 2 exams. They will be weighted as follows:
4 quizzes based on the class material (slides, material on the board, homework problems, readings) (42%)
-Lowest grade will be dropped
-worth 14% each
-Essay and multiple choice questions
2Exams based on the class material, homework problems, and the readings (58%)
-Worth 28% each
Your letter grade will be determined by the percentage of total points earned as follows:
A 90% or above
B 80 –89.99%
C 70 – 79.99%
D 60 – 69.99%
F Below 60%
There may be an extra credit opportunity, but nothing after November for the class. More to come.
Curve: You should not depend on a curve, as there is a reasonable probability that there will not be
one. If there is a curve, it would be small at best.
Grades: I want all of you to get the highest grade you want, but I believe you reap what you sow.
So if you want a certain grade, please visit me during the semester so I can help you get that
grade. The week before the exam may be too late to earn the grade that you want.
Students are expected to keep track of their performance throughout the semester and seek guidance from available sources (including the instructor) if their performance drops below satisfactory levels; see “Student Support Services,” below.
Attendance:
At The University of Texas at Arlington, taking attendance is not required. Rather, each faculty member is free to develop his or her own methods of evaluating students’ academic performance, which includes establishing course-specific policies on attendance. As the instructor of this section, I have decided that attendance at class meetings is not required but strongly encouraged. If you must miss class, you are responsible for obtaining any class notes and homework assignments distributed in class.
Homework:
Throughout the semester on a near weekly basis, I will assign homework. This homework will not be graded nor will I collect this homework, but it is to be used to help prepare for quizzes and exams along with the other material. This does not mean questions on the exams will be exact questions from the homework. Many, but not all of the concepts tested will be concepts from the homework.
Readings:
To be tested on the exams with not the quizzes, I will provide you a series of reading and questions you will need to be able to answer for the exams. These will typically be news articles, sketches, and a journal article or two. You will have about 4 to 8 to read and study for each exam.
Quizzes:
There will be 4 quizzes of which I will drop your lowest grade. Each quiz will consist of essay and multiple-choice questions. These quizzes will test your understanding of the concepts discussed in class. Therefore your focus should be on the content discussed in class. Missed quizzes will be given a grade of zero unless adequate evidence (official documentation with contact information from a medical/legal professional for example) is presented to indicate that missing the quiz could not be avoided.
Exams:
There will be 2 exams. Each exam consists of short and long answer open ended questions. If you have conflicts with the exam dates contact me immediately (prior to the exam dates). Missed exams will be given a grade of zero unless adequate evidence (official documentation with contact information from a medical/legal professional for example)is presented to indicate that missing the exam could not be avoided.
Allquizzes and exams will be closed book, closed notes, where the only thing you need to provide are pencils/erasers and the proper calculator. You may have something for drinking, but otherwise, you must have a clear desk area, including headwear and mobile devices. There will be other restrictions as well.
Final note on quizzes and exams: Students may not use a programmable calculator for examinations. A simple four function calculator is sufficient for all problems. I recommend the TI-503 which should be available at the book store.
Make-up Quizzes and Exams and Exam policy: Quiz and Exam dates will not be changed unless the university has been closed; I will adjust the material if we get behind. Make up quizzes will not be given for the first missed quiz with an excused absence and they will require documentation and possible follow up by me or the department. For an excused absence, I will compute your quiz as if the missed quiz never existed. I will provide make up for the exams, and even then, only under extenuating circumstances that will require documentation and possible follow up by me or the department.
Expectations for Out-of-Class Study: Beyond the time required to attend each class meeting, students enrolled in this course should expect to spend at least an additional 7 to 8 hours per week of their own time in course-related activities, including reading required materials, completing assignments, preparing for quizzes and exams, etc.
Speakers: We may have time for a speaker. If so and who they are will be announced later.
Assignments & Academic Calendar:
Readings from the textbook are listed for when they are supposed to have been read. Quiz and Exam dates are also listed below. If we get behind, the dates for exams will not change unless the university has been closed. I will change the material covered in exams to accommodate where we are.
I will try supply the material/slides a few hours before class. Any reference to chapters is in reference to the recommended book
Aug 25Intro to class.
Week of Aug 28 Chapter 1, Econ of Sports. Discussion of Sports place in the greater economyChapter 2, Review of Econ Arsenal. (Graphing Review and Overview of Regression) Review of supply and demand, elasticity, market structure.
Week of Sept 4Chapter 2 continued. Start Chapter 3: Sports Team Behavior. How teams/leagues use their monopoly power
Week of Sept 11Chapter 3 continued. Start Chapter 4, Consequences of Teams having monopoly power, pricing and antitrust.
Sep 15Quiz #1: Chapter 1,2, beginning part of Chapter 3.
Week of Sept 18Chapter 4: Consequences of Monopolies and pricing.
Week of Sept 25Chapter 4: Monopolies as market providers. Antitrust and the Reserve Clause. Select topics of chapter 5, demand for competitive balance.
Sept 29Quiz #2: Ch. 3 and 4
Week of Oct 9Finish Antitrust and chapter 5. Start section on the benefits of public financing of sporting venues, Chapter 6 material
Week of Oct 16Finish benefits of public financing. Exam #1 Review.
Oct 20Exam #1 (Ch 1, 2, 3, 4, 5)
Week of Oct 23Start Chapter 7, Public finance of sports, who pays. How public funded facilities are paid for and who pays for them. Discussion of bonds.
Week of Oct 30Chapter 7.
Nov 3Quiz #3: Chapter 6 and 7
Week of Nov 6Finish Chapter 7. Chapter 8, intro to Labor markets. Evaluation of player value to team. Sabremetrics.
Week of Nov 13Chapter 8. Start Chapter 9
Week of Nov 20Chapter 9. Labor market imperfections and Labor unions.
Nov 22Quiz #4 Chapter 8
Week of Nov 27Chapter 9. Labor market imperfections and Labor unions.
Week of Dec 4Review for Exam #2
Dec 11Exam 2 (from 8 to 10:30 am)Chapters 6, 7, 8, 9
“As the instructor for this course, I reserve the right to adjust this schedule in any way that serves the educational needs of the students enrolled in this course. – Malcolm J Kass
Communication: Check Blackboard frequently. I will communicate exclusively via the email feature in Blackboard, when possible. You are responsible for accessing your email account and blackboard on a daily basis during the week.
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