collective selling

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A transaction in which a set of rights owners—the member clubs of the English football Premier League, for instance, or of the National Basketball Association in the USA—sells the rights to broadcast coverage of its matches collectively, and the income is subsequently divided up among all of the member clubs. Collective selling might be in principle favoured by the smaller clubs, with the larger, dominant clubs arguing that the principle and practice curtail their profit-maximizing potential (compared with, say, the potential of themselves, as an individual company, selling coverage of all of their games). Economists observe, though, that collective selling works against the interests of small clubs, by boosting the already strong profile of leading and high-profile clubs, and limiting the exposure to potentially new markets (or fans) of the relatively low-profile clubs. See also cartel.

Subjects: Sport and Leisure.

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