Ch 10. Professional Sports Flashcards
What are the two forms of professional sports government?
corporate governance model and single-entity model
What is a corporate governance model?
when the owners act like a board of directors and the Commissioner acts like the CEO
What power does a Commissioner usually have?
- approve player contracts
- disciplinary matters
- rule making
- dispute resolution
Who was the first commissioner?
Judge Kennesaw Mountain Landis in 1920 for baseball
Why did baseball create a commissioner?
the Black Sox Scandal
What is the most common example of a single-entity model?
Major League Soccer
What does a single-entity model mean?
investing in the league as a single entity then operating a club locally
What does the single-entity model promote?
avoiding antitrust liability and creating centralized fiscal control
What is made centrally for a single-entity model?
player compensation and personnel decisions
What do leagues look for when considering a new franchise?
financial resources, community commitment, commitment to sport, government relations, and the character of potential owners
What does revenue sharing do?
allow most teams to be owned by families or individuals
What is the maximum number of owners for an NFL team?
25 (1 large owner and 24 smaller owners)
Who holds 30% of an NFL team?
one control executive
What does the NFL prohibit and what is the exception?
prohibits corporate ownership and public ownership but the Green Bay Packers is the exception
What did franchise ownership prohibit?
cross-ownership until 1997
