Dietl, Helmut M.; Lang, Markus; Werner, Stephan - In: International Journal of Sport Finance 5 (2010) 1, pp. 41-51
This paper presents a model of a professional sports league and analyzes the effect of luxury taxes on competitive balance, club profits, and social welfare. It shows that a luxury tax increases aggregate salary payments in the league and produces a more balanced league. Moreover, a higher tax...