GLOBAL PERSPECTIVES

Sports: America's Well-Kept Socialist Secret

Sep 25, 2017 | 09:15 GMT

Sports: America's Well-Kept Socialist Secret
Having gone through decades of competition and consolidation, professional U.S. sports leagues became legal cartels in the second half of the 20th century.

(MIKE HEWITT/Getty Images)

Editor's Note:

Decades before the Major League Baseball playoffs became a monthlong postseason tournament, the World Series pitted the champions of the American League and the National League, determined by their season record, against each other. But today the contest looks quite different: Starting Oct. 3, the winners of the three divisions in each league, plus the two remaining teams with the best records from each, will compete in as many as 43 playoff games. This playoff system creates a lucrative "second season," where with a good run, an also-ran can claim the crown — a type of sports socialism that is at odds with postseason play in much of the rest of the world. As the baseball playoffs draw near, we revisit this look at the differences in the way global and U.S. sports leagues approach their postseasons.

In American professional leagues, there is no cost for performing poorly and finishing at the bottom. In fact, there is a reward. The exact process differs a bit from league to league, but in the simplest terms, in the NBA, NFL and NHL, the worst teams are entitled to the first picks in the amateur player draft the following season. This is done in the interest of some nebulous idea known as "parity," but it doesn't take an economist to recognize the irony. In American sports -- our most bountiful source of metaphors for free market competition -- the norm is actually bright red, redistributive socialism: Fail to compete and reap the spoils....

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