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Financial Incentives and League Policy: The Example of Major League Baseball's Steroid Policy

Financial Incentives and League Policy: The Example of Major League Baseball's Steroid Policy Abstract This paper illustrates possible changes in revenue from league drug policies. We argue that there were perceived financial incentives for Major League Baseball (MLB) to not have a steroid policy. MLB did not begin testing players for steroids in earnest until the 2005 season although the league office acknowledged use a decade and a half earlier. Only after outside pressure did the league implement a policy with specific, enforceable penalties. This paper uses regression analysis to assess whether the absence of a true steroid policy prior to 2005 affected scoring, then quantifies the amount of revenue baseball owners lost as a consequence of the updated steroid policy. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png European Sport Management Quarterly Taylor & Francis

Financial Incentives and League Policy: The Example of Major League Baseball's Steroid Policy

15 pages

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References (41)

Publisher
Taylor & Francis
Copyright
Copyright European Association for Sport Management
ISSN
1746-031x
eISSN
1618-4742
DOI
10.1080/16184740701814423
Publisher site
See Article on Publisher Site

Abstract

Abstract This paper illustrates possible changes in revenue from league drug policies. We argue that there were perceived financial incentives for Major League Baseball (MLB) to not have a steroid policy. MLB did not begin testing players for steroids in earnest until the 2005 season although the league office acknowledged use a decade and a half earlier. Only after outside pressure did the league implement a policy with specific, enforceable penalties. This paper uses regression analysis to assess whether the absence of a true steroid policy prior to 2005 affected scoring, then quantifies the amount of revenue baseball owners lost as a consequence of the updated steroid policy.

Journal

European Sport Management QuarterlyTaylor & Francis

Published: Mar 1, 2008

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