In this paper, football clubs are modeled as value‐maximizing enterprises. With a long‐term perspective in this framework, players are not only factors of production, but also assets of the club. It is shown that talent investment is higher with value‐maximization than with profit...

The existing instruments for improving the competitive balance within a sports league, such as revenue sharing, restrictions on free agency and salary caps, all have their shortcomings. In this paper, we show that a progressive sports tax, the revenues of which are not redistributed to smaller...