The Economics of the Premier League – A Case Study in Cartels?

In most industries if the producers grouped together and then sold their product in co-operation it would be a cartel, and illegal.  Indeed, as this link shows when a group of French hotels did so they found themselves in real trouble with the authorities:

http://www.theguardian.com/world/2005/nov/30/france.travelnews

However, you could argue that a group of football clubs has done the same thing, and reaped huge financial rewards:

http://www.theguardian.com/media/2012/jun/13/premier-league-tv-rights-3-billion-sky-bt

The case of the premier league’s recent sale of television rights is an excellent example of an inelastic good and the benefits to producers of working together, rather than in competition.

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