By Neil Longley

ISBN-10: 1461494842

ISBN-13: 9781461494843

ISBN-10: 1461494850

ISBN-13: 9781461494850

This e-book takes a multi-disciplinary method of reading the character of ‘competition’ and ‘competitive virtue’ in the U.S. seasoned activity undefined. through many measures, the 4 significant seasoned activities leagues within the U.S. – the nationwide soccer League (NFL), nationwide Basketball organization (NBA), nationwide Hockey League (NHL), and significant League Baseball (MLB) – at the moment are probably the most winning company entities within the nation. whereas those validated leagues have commonly been hugely ecocnomic all through their respective existences, the previous twenty years were rather profitable, with franchise values in all 4 leagues growing to be swiftly, and at degrees way past marketplace charges of go back. inside this context, the booklet seeks to discover the character of the aggressive virtue that those leagues it sounds as if own. the aim is to spot not just how those leagues were in a position to get to the place they're this present day, but additionally to ascertain the aggressive threats and possibilities that those leagues face as they flow ahead. A key contribution of the ebook is that it analyzes those concerns from a multi-disciplinary procedure together with a standard economics viewpoint, public coverage and public selection conception and strategic administration, to supply a parallel reason for the luck of every of the 4 significant leagues. It argues that no unmarried conceptual strategy can, in itself, appropriately clarify the whole richness of the problem. Its stresses that those quite a few techniques should still typically be seen as enhances, instead of as being at the same time specific, and complete realizing of the difficulty calls for one to undertake a multi-disciplinary point of view, making it of curiosity to students in strategic administration, activity administration, and economics. it could function an efficient instructing device in either graduate and upper-level undergraduate classes for college students in those fields, and is especially important for schools looking to emphasize to their scholars the significance of a multi-disciplinary, integrative, strategy whilst interpreting company and administration concerns. The e-book can also be of curiosity to leaders in the recreation itself, and may aid to supply perception and standpoint as leagues search to reinforce their aggressive virtue within the marketplace.

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Additional resources for An Absence of Competition: The Sustained Competitive Advantage of the Monopoly Sports Leagues

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While these other three leagues all do have national TV contracts, and the revenue generated from these contracts is distributed equally, as in the NFL, the value of these contracts is much smaller than in the NFL. The value of the local rights for any given franchise will depend on the market size of that franchise—in general, franchises in larger markets will have greater local media revenues than those in smaller markets. For example, in baseball, the annual value of the New York Yankees local TV contract is more than ten times what the Kansas City Royals generate from their local TV deal.

If the English Premier League, for example, introduced a salary cap on its teams, many players would simply defect from that league and go to leagues where there was no cap, say Germany or Spain. In the three leagues that have some form of a salary cap—the NFL, NHL, and NBA—players’ associations in these leagues have only agreed to these caps in return for a guarantee that players receive a certain predefined percentage of league revenues. These provisions are set out in each league’s CBA. The exact percentage going to players varies across leagues and with each new CBA, but, in general, players have tended to receive about 50 % of league revenues.

San Antonio played at tiny and somewhat decrepit Alamo Stadium; the stadium had a capacity of only 18,000, which could be expanded to 32,000 with the use of folding chairs, hardly an image that reflected major-league status. Of the six expansion franchises, only the Pittsburgh Maulers and Houston Gamblers played in major venues, and both shared their respective facilities with an NFL team—Three Rivers Stadium for Pittsburgh and the Astrodome for Houston. Initially, the Maulers had difficulty in securing a lease for Three Rivers, and the club suspected the NFL’s Steelers were influencing the issue behind the scenes.

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An Absence of Competition: The Sustained Competitive Advantage of the Monopoly Sports Leagues by Neil Longley


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