ECON 5318 - 001: Economics of Sports
ECON 5318 - 001: Economics of Sports
Fall 2016
Course Syllabus
Instructor(s): Malcolm Kass
Office Number: COBA 326
Office Telephone Number: 817-272-3221
Email Address:
Faculty Profile: https://www.uta.edu/profiles/malcolm-kass
Office Hours: Thursdays 4pm-6pm or by appointment
Section Information: ECON 5318-001
Time and Place of Class Meetings: Thursdays 7:00 pm to 9:50 am, COBA 140
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.
Required 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.
Recommended Textbook: Wages of Wins : Taking Measure of the Many Myths in Modern Sport
Blackboard:
I will use Blackboard, an electronic learning software platform, for the distribution of course information. Go to http://elearn.uta.edu/ 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 http://www.uta.edu/blackboard/students/
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 and pagers 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.
Failure to adhere to these classroom rules may result in your being dismissed from class and/or an academic penalty.
Prerequisites:
Econ 5311 or approval by advisor.
Grading:
Your final grade will be determined by 6 writing assignments, 4 quizzes and 2 exams. They will be weighted as follows:
6 writing assignments – Over different topics from the class and assessments of your classmates work. I will provide topics for you to write. More about this below (24%)
4 quizzes based on the class material (book, slides, material on the board, homework problems but not the readings) (24%)
- Lowest grade will be dropped
- worth 8% each
- Scantrons will be necessary for each quiz: Form 882-E
- Will be performed in the last 40 minutes of class
2 Exams based on the class material, homework problems, and the readings (52%)
- Worth 26% 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%
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.
Writing assignments:
One of UTA’s education directives is the need to enhance the writing ability of our students. For this class, you will write reports for your classmates. The idea is to “Write from the reader’s perspective”, meaning that while syntax and other technical aspects play a role, good word structure to clearly convey information to the reader is going to be vital. It is found that when students are writing for the teacher, students adjust their writing toward regurgitation vs. analysis and inspection. They write what they think the instructor wants to read. In addition, writing clarity suffers. However, this “works” for the student because the teacher knows the topic well and can deduce the student’s intent even with an unclear paper. But this doesn’t work in reality because you will not write for experts, but for those who know as much or often less than you. Therefore, you are going to write not for me, but in a manner that conveys information to your classmates in a clear manner. The assignments are as follows
3 assignments worth 5% each where you are to write about a topic that I will provide to you. An example of a topic may be “Trump wanted the USFL to compete with the NFL by scheduling USFL games in the Fall instead of the Spring. Evaluate this and did he act as someone trying to maximize payoffs?” The key isn’t to just write a review, but to delve further. What is the problem in your mind? What did you find striking about this situation? What did you not understand and what questions do you have? Having the ability to ask sensible questions means you have a good understanding of the material. Now remember, you are not writing for me, but for a classmate who probably knows as much economics as you, so know your audience. Write in a way where this person is going to engage with you about something you need to understand. Lastly, make sure this person can understand your writing! Always keep in mind that your classmates need to understand what you are saying. I expect these papers to be 2 to 4 pages in length with reasonable font size (12 pt) and spacing (1.5), but this isn’t going to be a hard and fast rule. After I collect these papers, I will randomly and anonymously forward them to another classmate to perform the following. (hence, I need these in electronic form)
3 assignments worth 3% assessing the person’s paper. Now, one of you will receive one of your classmate’s papers to evaluate. Note you are not grading the work, but assessing the paper. Try to properly answer and add more depth to the author’s questions. At the same time, note if there are items that you feel the author was unclear about. You are going to be responsible for each other, therefore let it be known if the writing isn’t sensible. In responding, you are trying to engage this person, if possible, help them understand misconceptions. Correct them in a manner where this is someone like your boss or co-worker. Therefore, don’t be mean, but think of this as an opportunity to provide assistance and to widen the scope of the question. I expect these papers to be 1 to 2 pages in length with reasonable font size (12 pt) and spacing (1.5), but this isn’t going to be a hard and fast rule.
Here is a paper by Dr. George Gopen at Duke to instruct how to write for the reader.
Remember, I don’t expect syntax perfection, just clear writing with good analysis.
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 10 to 20 multiple-choice questions. These quizzes will test your understanding of the concepts discussed in class. Therefore your focus should be on the material in the book and the content discussed along with the homework 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.
All quizzes 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 (except for the material from the textbook) a few hours before class.
Aug 25Intro to class. Chapter 1, Econ of Sports. Discussion of Sport’s place in the greater economy. Start Chapter 2.
Sep 1 Chapter 2, Review of Econ Arsenal. (Graphing Review and Overview of Regression) Review of supply and demand, elasticity, market structure.
Sep 8Chapter 2 continued. Start Chapter 3: Sports Team Behavior. How teams/leagues use their monopoly power. Wages of Wins Ch1 and 2. First written topics will be assigned.
Sep 8Quiz #1: Chapter 1 and 2
Sep 15Chapter 3 continued (may skip section 3.5), Start Chapter 4, Consequences of Teams having monopoly power, pricing and antitrust.
Sep 22Chapter 4: Consequences of Monopolies and pricing. First written assignment due.
Sep 29Quiz #2: Chapter 3 and 4 (up to Section 4.3)
Sep 29Chapter 4: Monopolies as market providers. Antitrust and the Reserve Clause. Section 5.3: Invariance Principle. Wages of Wins Chapters 3 and 4.
Oct 6Finish Antitrust. Exam #1 Review on the 6th. Turn in First written response
Oct 13Exam #1 (All material) Second written topics will be assigned.
Oct 13Start Chapter 6, Public finance of sports, who benefits. The economic benefits of new facilities to fans and communities.
Oct 20 Finish chapter 6, start Chapter 7, Public finance of sports, who pays. How public funded facilities are paid for and who pays for them. Discussion of bonds.
Oct 27Finish Chapter 7. Second written assignment due.
Nov 3Quiz #3: Chapter 6 and 7.
Nov 3Chapter 8, intro to Labor markets. Evaluation of player value to team. Sabremetrics. (only select topics, ) Chapter 5 in the Wages of Wins book.
Nov 10Finish Chapter 8. Chapter 9, Labor market imperfections and monopsony. Unionization. Turn in Second written response. Third written topics will be assigned.
Nov 17Chapter 9. Labor market imperfections and Labor unions.
Nov 17Quiz #4. Chapters 8 and 9 .
Dec 1Start Chapter 11, NCAA: Amateurism, Title IX, and its non-profit status. Third written assignment due.
Dec 15Exam 2 (from 8:15 pm to 10:45 pm) Chapters 6, 7, 8, 9, 11. Turn in Third written response.
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.
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.
Grade Grievances: Any appeal of a grade in this course must follow the procedures and deadlines for grade-related grievances as published in the current University Catalog.
For undergraduate courses, see http://catalog.uta.edu/academicregulations/grades/#undergraduatetext
for graduate courses, see http://catalog.uta.edu/academicregulations/grades/#graduatetext.
For student complaints, see http://www.uta.edu/deanofstudents/student-complaints/index.php.
Drop Policy: Students may drop or swap (adding and dropping a class concurrently) classes through self-service in MyMav from the beginning of the registration period through the late registration period. After the late registration period, students must see their academic advisor to drop a class or withdraw. Undeclared students must see an advisor in the University Advising Center. Drops can continue through a point two-thirds of the way through the term or session. It is the student's responsibility to officially withdraw if they do not plan to attend after registering. Students will not be automatically dropped for non-attendance. Repayment of certain types of financial aid administered through the University may be required as the result of dropping classes or withdrawing. For more information, contact the Office of Financial Aid and Scholarships (http://wweb.uta.edu/aao/fao/).