2.3 (Efficiency perspective)

The idea is that they are there because they minimize the cost of running the system

In the North American major leagues two institutional elements dominated during the last decades:

In the European model, some of these elements have been partially adopted over the last years: Most football leagues have transformed their organizational structure into one of a cooperative governance:

-«FA Premier League» in England, «Ligaverband» in Germany, «La Liga» in Spain …

The difference to the North American leagues is that the European clubs operate under a fragmented system of supervision. The function of the «commissioner» is diluted, for example:

-DFL supervises clubs in the «Bundesliga»

-UEFA supervises clubs in European competitions

-FIFA, DFB etc. also have supervisory tasks (e.g. transfers)

Commission as a monitor whether they follow the rules

A cooperative governance system and the delegation of executive powers to a (more or less) independent entity seem to possess some advantages in terms of internal efficiency

-Seemingly, no alternative regime would reduce «the costs of running the system» (Coase, 1937)

-Why?

Team production

Specific investments