This article examines the effectiveness of auctions as sale procedures of sports rights. Although recent history contains several examples of auctions that have generated substantial revenues to owners of sports rights, staging an auction is no guarantee of success. The amount that bidders are willing to pay is influenced by a number of factors. Television companies or networks do not control all of the factors that influence their income from sports broadcasting. As a result, risk-aversive companies may choose not to submit bids. Sellers should stage open-bid procedures (preferably...Read more
