Friday, September 9, 2011

Marginal revenues and marginal costs of running an NFL team

My favorite football (and policy) analyst is the tastefully named Gregg Easterbrook, who writes Tuesday Morning Quarterback for ESPN.com. He presents analysis that it's more profitable for NFL teams to lose cheaply than to spend a lot of money to try to win. The marginal cost of getting better players seems to greatly exceed the marginal revenue from increased revenues that come to teams with better winning records. If this is true, it would explain...a lot of bad teams.

I also wonder if in leagues where this is true, is there more turn-over at the top?

1 comment:

IceMat89 (Mattia P) said...

well here in Italy football teams like Udinese have a lot of profits by selling its players, more than if it win the Serie A.