Economics of Sport Winter 2023
ECON 254

Brief Summary

The course will develop fundamental economic concepts in the context of the sports industry.  We will limit our attention primarily (but not exclusively) to the consideration of the four major North American leagues: the NHL, NBA, NFL, and MLB. 

The course is divided into five major sections. 

First, we will familiarize ourselves with the economic size of the sports industry and consider some of the history of the four major North American sports.  We review the demand and supply model in the sports context.  It is essential to develop the economic toolbox necessary for use in the subsequent course materials. 

In the second section of the course, we investigate potential methods for modelling sports performance.  The analytics portion of the course begins with a study of econometric methods followed by performance measures, profit maximization, and game theory.  

Next, we will consider some of the fundamental aspects of the business of sports. The business structure of several sports is discussed, and we introduce fantasy sports, sports betting, and e-sports. The section ends with an investigation of competitive balance and competitive balance measures. 

In the penultimate section, we will examine the labour economics of sports, focusing on the labour-leisure model, unions, and collective bargaining. 

Finally, we will briefly examine the public economics of sports.  We will look at how and why cities spend public money on professional sports teams. 

This class schedule is ambitious. Additions, modifications and/or eliminations of certain content might be required given our limited time together. Any necessary modifications to the course content will be communicated to you in an online announcement.

LECTURE SLIDES

I will be posting summary notes relating to each week’s lecture material on LEARN.  These notes are intended to briefly highlight key learning objectives.  Your main source of study material will be the textbook and the lecture slides.

REQUIRED TEXTBOOK

Van de Waal, Corey. Economics and the Sports Industry: Theory and Applications. Dubuque: Kendall Hunt Publishing, 2021.

Examinations in this course are based on the material contained in the textbook readings and presented as lecture content (which are all strong complements, not substitutes).  

Course Requirements and Assessment

The two individual assignments in this course will collectively be worth 30% (15% each) of your final grade.  The midterm will be written on the date specified below and the results will be worth 30% of your final grade.  The final exam will constitute 40% of your final grade and will be comprehensive (i.e., cover all course material from beginning to end).

The course grade will be based on the weighted sum of the two assignments, the midterm exam, and the final examination which will be held during the Official Examination Schedule.  The breakdown is as follows:

Notes

• The format for the midterm and the final exam will be a potential mix of multiple-choice questions and written problems.
• The final exam period will be posted in the Final Exam Schedule.  Students are expected to be available during this time. Travel plans are not acceptable grounds for granting an alternative final examination time. http://uwaterloo.ca/registrar/final-examinations/examination-regulations-and-related-matters
• The exact date and time for the final exam for this class will be determined by the Registrar’s Office.  The exam schedule will be posted online and posted on LEARN.
• Only the Registrar’s Office can issue final grades.

This grading scheme will be implemented strictly for all students in the course (except for verified illnesses – see below).

Policy on Missed/Late Assignments and Tests

Any assignment that is not submitted by the date and time at which this assignment is due will be penalized at a rate of 10% per day (up to a maximum of 5 days). If the assignment is more than 5 days late, then it will receive a grade of zero.

No make-up attempts will be provided for the midterm. Students who miss the midterm and do not have a relevant medical certificate will receive a mark of zero. Students with a valid medical certificate will have the weight of the midterm added to their final exam weighting.

Intellectual Property

Students should be aware that this course contains the intellectual property of their instructor, TA, and/or the University of Waterloo. 

Intellectual property includes items such as:

• Lecture content, spoken and written (and any audio/video recording thereof);
• Lecture handouts, presentations, and other materials prepared for the course (e.g., PowerPoint slides);
• Questions or solution sets from various types of assessments (e.g., assignments, quizzes, tests, final exams); and
• Work protected by copyright (e.g., any work authored by the instructor or TA or used by the instructor or TA with permission of the copyright owner).

Course materials and the intellectual property contained therein, are used to enhance a student’s educational experience. However, sharing this intellectual property without the intellectual property owner’s permission is a violation of intellectual property rights.  For this reason, it is necessary to ask the instructor, TA and/or the University of Waterloo for permission before uploading and sharing the intellectual property of others online (e.g., to an online repository).

Permission from an instructor, TA or the University is also necessary before sharing the intellectual property of others from completed courses with students taking the same/similar courses in subsequent terms/years.  In many cases, instructors might be happy to allow distribution of certain materials. However, doing so without expressed permission is considered a violation of intellectual property rights.

Please alert the instructor if you become aware of intellectual property belonging to others (past or present) circulating, either through the student body or online. The intellectual property rights owner deserves to know (and may have already given their consent).

Economics Department Deferred Final Exam Policy

All deferred Final Exam requests for economics courses are administered by the Economics Undergraduate Office. Please consult the Deferred Exam Policy at 

https://uwaterloo.ca/economics/undergraduate/resources-and-policies/deferred-final-exam-policy.

Academic freedom at the University of Waterloo

Policy 33, Ethical Behaviour states, as one of its general principles (Section 1), “The University supports academic freedom for all members of the University community. Academic freedom carries with it the duty to use that freedom in a manner consistent with the scholarly obligation to base teaching and research on an honest and ethical quest for knowledge. In the context of this policy, 'academic freedom' refers to academic activities, including teaching and scholarship, as is articulated in the principles set out in the Memorandum of Agreement between the FAUW and the University of Waterloo, 1998 (Article 6). The academic environment which fosters free debate may from time to time include the presentation or discussion of unpopular opinions or controversial material. Such material shall be dealt with as openly, respectfully and sensitively as possible.” This definition is repeated in Policies 70 and 71, and in the Memorandum of Agreement, Section 6

Mental Health Support

All of us need a support system. The faculty and staff in Arts encourage students to seek out mental health support if they are needed.

On Campus

Due to COVID-19 and campus closures, services are available only online or by phone.

• Counselling Services:  counselling.services@uwaterloo.ca / 519-888-4567 ext. 32655
• MATES:  one-to-one peer support program offered by the Waterloo Undergraduate Student Association (WUSA) and Counselling Services

Off campus, 24/7

• Good2Talk:  Free confidential help line for post-secondary students. Phone: 1-866-925-5454
• Grand River Hospital: Emergency care for mental health crisis. Phone: 519-749-4300 ext. 6880
• Here 24/7: Mental Health and Crisis Service Team. Phone: 1-844-437-3247
• OK2BME: set of support services for lesbian, gay, bisexual, transgender or questioning teens in Waterloo.  Phone: 519-884-0000 extension 213

Full details can be found online on the Faculty of Arts website

Download UWaterloo and regional mental health resources (PDF)

Download the WatSafe app to your phone to quickly access mental health support information.

Territorial Acknowledgement

We acknowledge that we are living and working on the traditional territory of the Attawandaron (also known as Neutral), Anishinaabe and Haudenosaunee peoples. The University of Waterloo is situated on the Haldimand Tract, the land promised to the Six Nations that includes ten kilometres on each side of the Grand River.

For more information about the purpose of territorial acknowledgements, please see the CAUT Guide to Acknowledging Traditional Territory.

Academic integrity: In order to maintain a culture of academic integrity, members of the University of Waterloo community are expected to promote honesty, trust, fairness, respect and responsibility. [Check the Office of Academic Integrity for more information.]

Grievance: A student who believes that a decision affecting some aspect of their university life has been unfair or unreasonable may have grounds for initiating a grievance. Read Policy 70, Student Petitions and Grievances, Section 4. When in doubt, please be certain to contact the department’s administrative assistant who will provide further assistance.

Discipline: A student is expected to know what constitutes academic integrity to avoid committing an academic offence, and to take responsibility for their actions. [Check the Office of Academic Integrity for more information.] A student who is unsure whether an action constitutes an offence, or who needs help in learning how to avoid offences (e.g., plagiarism, cheating) or about “rules” for group work/collaboration should seek guidance from the course instructor, academic advisor, or the undergraduate associate dean. For information on categories of offences and types of penalties, students should refer to Policy 71, Student Discipline. For typical penalties, check Guidelines for the Assessment of Penalties.

Appeals: A decision made or penalty imposed under Policy 70, Student Petitions and Grievances (other than a petition) or Policy 71, Student Discipline may be appealed if there is a ground. A student who believes they have a ground for an appeal should refer to Policy 72, Student Appeals.

Note for students with disabilities: AccessAbility Services, located in Needles Hall, Room 1401, collaborates with all academic departments to arrange appropriate accommodations for students with disabilities without compromising the academic integrity of the curriculum. If you require academic accommodations to lessen the impact of your disability, please register with AccessAbility Services at the beginning of each academic term.

Turnitin.com: Text matching software (Turnitin®) may be used to screen assignments in this course. Turnitin® is used to verify that all materials and sources in assignments are documented. Students' submissions are stored on a U.S. server, therefore students must be given an alternative (e.g., scaffolded assignment or annotated bibliography), if they are concerned about their privacy and/or security. Students will be given due notice, in the first week of the term and/or at the time assignment details are provided, about arrangements and alternatives for the use of Turnitin in this course.

It is the responsibility of the student to notify the instructor if they, in the first week of term or at the time assignment details are provided, wish to submit alternate assignment.