At first glance, it may seem that economics and sport are of little relevance to one another. But economic analysis can inform big sporting decisions from signing players to specific plays to performance assessment; while sport can shed light on fundamental economic questions. If you look closely at your favourite sport nowadays, it is hard to miss the influence of economics. Its impact is evident from the way that players are drafted or how much they are paid, through to individual coaching decisions and even strategic shifts across entire leagues.
In Australia, the broadcast rights for the AFL and National Rugby League (NRL) are each valued in billions of Australian dollars over the life of a six- or seven-year contract. So these games involve big money and this doesn’t count the merchandise that can be sold to fans.
