The National Basketball Association

Introduction

Professional sport is regarded as the most expensive sector within the three sectors of sport. It also has the most publicity and generates the most revenue (Hoye, Smith & Stuart, 2015). Besides the athletes, a sporting organisation heavily relies on the management team to help run the “business” effectively and efficiently. Sport management has become very influential within the industry because of all the employment opportunities at all levels of sport. “Sport managers engage in strategic planning, manage large numbers of human resources, deal with broadcasting contracts worth billions of dollars…” (Hoye, Smith & Stuart, 2015). The selected sporting organisation for this enterprise profile is the National Basketball Association

America had two basketball leagues running at the time and both found it promising to combine the two leagues and establish the NBA. The first owner of the NBA was Maurice Podoloff. (History.com, 2009). From establishment there have been many changes to the league to ensure that the best level of basketball is being played and also the fans/consumers are gaining the most they can from the association. Throughout the years it is obvious that there would be many changes to happen within the league. Some of the major changes that have created a much better business environment are that there has been an All-Star event that showcases all the best players in the league in one game representing their conference, the division of Eastern and Western teams, the recruitment of international players, A player must have at least 1 year college experience in order to be eligible for the NBA and another major change within the organisation is the change in commissioner (NBA.com, 2015). The establishment of the National Basketball Association was to have “one” major basketball league to be renowned over the whole of

This sporting code ears revenue within the hundreds of millions of dollars per annum. An example as to how the National Basketball Association earns hundreds of millions of dollars within the year if, a specific team makes a very strong playoff campaign, the increase in ticket prices allow a much higher revenue to be made off the ticketing (Mahmoud. M, 2006). Each team has an owner and is considered a franchise. The teams in the National Basketball Association are under the bylaws of the association not to be operated to make a profit (PK Hammar, 2014). Although there is a commissioner and ultimately they do have the last say, the franchises and/or teams can have a say in whether or not rules can be changed, added in or even taken away. For example, the draft lottery was implemented by franchise owners and teams. Another common rule that has developed through the cohesion of the teams is the salary cap. This allows the lower graded teams who aren't as financially capable not have to come up against an overstocked and overpriced