This paper focuses on the proliferation of empirical measures of competitive balance arising from its multi-dimensionality (i.e. win dispersion versus performance persistence), and the increasing complexity and specificity of league structures. This has led to significant inconsistencies in the assessments of competitive balance, rendering it difficult to derive policy recommendations.
The authors extend previous empirical studies of the four North American major leagues (i.e. MLB, NFL, NBA and NHL) using six competitive balance measures to (1) compare changes in competitive balance over the period 1960–2019; (2) to investigate the degree to which win dispersion and performance persistence move in the same direction; and (3) to explore the extent to which competitive balance has changed across facility construction eras and regulatory regimes.
The authors find that the assessment of competitive balance is both metric-dependent and time-dependent, reinforcing the importance of using a portfolio of measures rather than a single metric. The findings also highlight the importance of understanding the dispersion-persistence relationship.
The authors stress that leagues must be aware of a potential dispersion-persistence trade-off when intervening to improve competitive balance.
