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Edwin Rosenberg’s Simple Problems, Simple Solutions articulates that sports leagues are composed of intrapartnership competition not interpartnership competition and as a result should be free from the influence of outside agencies, in particular the government and its antitrust regulations. He argues that it is in the league’s and teams’ best interests to maximize profits and therefore the league will regulate competition, as well as the number and location of franchises accordingly without the need for outside help. He states franchise movement as a prime example of this. Rosenberg does this by proposing the question: “Since there is no precedent of the government prohibiting a business from moving to a better market, why should a sports team be so enjoined?” (26). Essentially, Rosenberg is pointing out that if franchises are considered businesses they should be permitted to relocate to maximize profits just as any other business. And since franchises act in a way that is in their best interests financially they should not be subject to regulations from external entities. Additionally, Rosenberg claims that having a fixed number of teams in a league is good because having cities compete for the scarce resource of sports franchises is part of the free-market ideology. He continues by stating that for a market to work properly it must not …show more content…
be interrupted by the government. Leagues and teams will succeed and fail on their own merits and antitrust laws and other legislation should not interfere. Rosenberg concludes that cities and fans should not be shown sympathy by the government through regulations but rather learn better business practices in order to keep professional sports teams in their city. While Rosenberg successfully contends that sports leagues and teams are businesses that look to maximize profits and will act accordingly, his argument fails to realize that they act as monopolies and therefore do not allow the market of franchises to reach its equilibrium in order to maximize benefit to society.
The government’s lack of regulation in sports leagues: allowing mergers, entrance fees, and expansion control, has created monopolies that stop the free market (Grow). Decisions made by the owners who run the league are made in their interest not the public and there is no rival leagues of the same sport to combat
this. In terms of league expansion, owners of the league are allowed to charge whatever fee they like for a franchise to join the league and decide how many teams should be allowed in the league. With all NFL teams operating income over $26 million, several cities wanting teams, and owners willing to shell out ridiculous sums of money there is clearly a demand for football franchises that is not being met (Sports Money). There could easily be more teams in less profitable cities who could still operate in the profit and increase overall wealth by meeting the market demand and stimulating the economy. However because team owners split profits between all teams in the league, there is an incentive for them to only add teams when the profits of a new team outweigh the losses of having to split between an additional team (Grow). Additionally the less franchises there are in the market, the more their franchise is worth, which is further incentive to minimize league expansion. Consequently the NFL is not meeting the demand of the market and is minimizing the potential benefits to consumers. While Rosenberg’s Simple Problems, Simple Solutions failed to address to complex problems created by sports leagues acting as monopolies and resultantly harming the public, E-sports’ company owned leagues will provide a type of regulation that allows for free market competition without government intervention.
Ultimately, there are three exceptionally important criteria for deciding on good candidate for an expansion team. The first criterion is that the stadium must be controlled or owned by the baseball team. The stadium is a crucial aspect because most of the team’s revenue is generated in relation to the stadium. This stadium revenue comprises of ticket sales, parking, merchandise and concessions. Thus, without a stadium, the team will not be able to generate a stable source of revenue. The second criterion is that local ownership must have strong roots within the community. Without ties to the community, fan attendance could decrease. This is because fans could eventually perceive that the owner(s)’s only goal for the MLB franchise was to be profitable. The third criterion is the city must have long-term political support in the community. It is vital to have political support in order to gain financial support throughout the team’s years of existence, especially in tax payer monies. Particularly, this is significant when the team experiences issues or fights that involve the stadium and the land around the stadium. If there is a lack of political support, the expansion teams will not be able to obtain enough for money for stadium renovations, repairs, or to build new stadiums for the same team within the same city. This circumstance was apparent when the New York Yankees used tax revenue generated by New York City to fund the building of their brand new stadium for the 2009 season. Therefore, expansion committees believe it is necessary to confirm that the prospective cities will have enough political support because this political factor will help stabilize and financially support the prosp...
The NCAA is a global, and well-known company that regulates collegiate sports with thousands of universities across the country. The NCAA organizational assessment shows its strengths, weaknesses, opportunities, and threats relative to all competitors. In this current market environment, I assessed and prioritize what strengths and weaknesses were most important and which strengths have to continue to grow and what weaknesses needed to be mitigated. It is tough for the NCAA to have great competition due to the fact that it is far beyond any competitions and doesn’t seem to show any sign of slowing down soon. Issues, whether political or ethical, or whatever the case may be, as long as the NCAA continues to analyze its “SWOT” then they will always be the leader in the current market
Baseball remains today one of America’s most popular sports, and furthermore, baseball is one of America’s most successful forms of entertainment. As a result, Baseball is an economic being of its own. However, the sustainability of any professional sport organization depends directly on its economic capabilities. For example, in Baseball, all revenue is a product of the fans reaction to ticket prices, advertisements, television contracts, etc. During the devastating Great Depression in 1929, the fans of baseball experienced fiscal suffering. The appeal of baseball declined as more and more people were trying to make enough money to live. There was a significant drop in attention, attendance, and enjoyment. Although baseball’s vitality might have seemed threatened by the overwhelming Great Depression, the baseball community modernized their sport by implementing new changes that resulted in the game’s survival.
Some of the most prolific franchises in sports, like the Oakland Raiders and Baltimore Colts of the National Football League, have moved to other cities breaking off their loyalty to the hometown fans. More important than the actual moves are the more frequent threatened moves. When teams “play the field” and explore the option of playing in other cities they are able to lure interested cities into giving them just about any royalty they want. New stadiums are only the beginning. The willingness to threaten departure has secured for teams a variety of land deals, lower taxes, more revenues from parking and concessions, control of stadium operations, guaranteed ticket sales, renovation of stadiums with luxury seating, control over neighborhoods and transportation systems, and that’s only the beginning of the list.
Imagine a business that brings in $60 million each year ,and the people fueling that industry receive none of the revenue(Wieberg). These same people work 40 hours in their sport every week, these “people” are college athletes. The NCAA, the governing body for major college sports, is the industry doing this to college athletes(Edelman). This is an issue of exploitation and control by large institutions over primarily poor people, the NCAA is guiding them in directions to make money for everybody while doing everything possible to keep the players out of the money. College Athletes deserve profit because they bring in large revenue into their program, the NCAA, and they invest tons of time into their sport.
Kahn, L. (2009). Sports, antitrust enforcement and collective bargaining. Antitrust Bulletin, 54(4), 857-881. Retrieved April 24, 2012, from the EBSCO Host database.
The National Collegiate Athletic Association, or NCAA, has said that the high revenue sports subsidize less profitable sports like lacrosse, soccer, and hockey (Majorol). The consensus is if universities, with vast amounts of funding, start offering a play and get paid initiative that the lesser colleges would struggle to compensate, from a declining recruiting class, and their less popular athletic programs would slowly fizzle to nonexistence. Hypothetically, as athletes recognize that they can get an education, play college sports, and also get paid like an employee they will start transitioning away from the lesser schools while creating a pool of players in the top schools. Not only would that turn out as a horrible situation for minor schools, but this also means that college sports’ would not be exiting to watch when the top four schools fight it out, in the tournament each year. Eventually, ratings and ticket sales would go down due to the loss of unpredictability in games. College athletics are only a portion of negatives that come out of paying student athletes, the athletes themselves are also in virtue of
Abstract: Collegiate athletes participating in the two revenue sports (football, men's basketball) sacrifice their time, education, and risk physical harm for their respected programs. The players are controlled by a governing body (NCAA) that dictates when they can show up to work, and when they cannot show up for work. They are restricted from making any substantial financial gains outside of their sports arena. These athletes receive no compensation for their efforts, while others prosper from their abilities. The athletes participating in the two revenue sports of college athletics, football and men's basketball should be compensated for their time, dedication, and work put forth in their respected sports.
Abstract: The Stadium construction boom continues, and taxpayers are being forced to pay for new high tech stadiums they don’t want. These new stadiums create only part-time jobs. Stadiums bring money in exclusively for professional leagues and not the communities. The teams are turning public money into private profit. Professional leagues are becoming extremely wealthy at the taxpayers expense. The publicly-funded stadium obsession must be put to a stop before athletes and coaches become even greedier. New stadiums being built hurt public schools, and send a message to children that leisure activities are more important than basic education. Public money needs to be used to for more important services that would benefit the local economy. Stadiums do not help the economy or save struggling towns. There are no net benefits from single purpose stadiums, and therefore the stadium obsessions must be put to a stop.
New entrants into this industry are unusual since NBA League approval and a sharp franchise fee stand in the way of potential new team owners. Moreover, attempting to deceive the NBA would put the following difficulties into an entrepreneur’s path are: massive capital costs, lack of brand reputation, lack of TV revenue, and steep competition for talent. Extension teams occasionally do get approval, like the Charlotte Bobcats founded in 2004. Though, the competition that so many different industries face from new entrants is practically non-existent in professional basketball.
C. Stephen Evans is stating there is a problem with the philosophy of religion having a neutral stance. Evans rejects both fideism as well as neutralism, and believes that by trying to have a, “neutral, disinterested posture,” a person could, “cut themselves off from the possibility of even understanding what religion is all about,” (Evans, 1985 p. 115). Evans notes that the view of faith and reason, by some religious believers think it is an impossibility to have “rational reflection” on religion. After his arguments that disprove many ideas in both fideism and neutralism, he proposes an alternative solution which he has named, “critical dialog”, that he hopes will, “preserve the strengths and eliminate the weaknesses of the initial theories,” (p. 115). “Correct thinking about religion is rather a genuine faith, a personal commitment,” (p. 116).
1. What is the difference between a Nature of the business The National Basketball Association (NBA) is a professional basketball league located in the United States. It is composed of 30 franchised teams, all of which are in the US except for one located in Canada. It markets teams and players, and regulates franchised team ownership.
It is a business in which owners and players attempt to coincide. It is a business where TV controls fan interest. It is also a business that affects many people's lives, both monetary and living aspects. There are many aspects that are involved in the economics of sport. Each one has unique qualities that add to the greatest source of entertainment.
Sports have been around for thousands of years. The history of sports in United States began back in the 1840s. United States is a very unique country when we look at its sports, just like every country has a different structure of sports so does US. This paper will be taking about the Sports Organizations and Governance, the sports industry, sports organizations, and Structure of sports in the United States. It will also cover the Sport in the United States vs. Other Western Democracies by taking a look at the State Political, historical context, team objectives, and sports organizations. It will also cover the uniqueness of American sport as well as cover the mass participation and give recommendations on how to increase participation and success.
While sports for the spectators are merely entertainment, the economics of the industry are what drives businesses to become involved. Sports have become more of a business entity rather than an entertainment industry due to the strong economic perception of the over all industry. There are several instances in which economics may contribute to the effect on the sports industry, such as: the success of a team, the price of a ticket, the amount of money an athlete will make, and the amount of profit a team will make. The success of an...