Chapter 13 - Sport, Economics, and the Public Subsidy of Professional Sport Flashcards
relation with conflict theory and professional sport
labour relations and the circulation of commodities obscured by ideology
major leagues
understood as a cartel that are exempt from anti-trust laws
anti-trust laws
competitor franchise join together for mutual benefit by coordination production and pricing
cartel
exert monopoly power within a restricted market, restricting supply of franchise preventing competition
franchise
the right to offer a nationally known, brand name product (NHL) in a protected market area
reason for cartels restricting output quantity
limited supply of franchise, length and timing of season, and increase prices to earn monopoly
monopoly rent
profits above what would be earned in competitive market place
monopoly
a market with only one seller
monopsony
market with only one buyer
use of monopsony in major leagues
power to secure labour of the best professional players
reverse clause
system of indentured servitude that bound players to a specific team for the duration of their careers
Colin Kaepernick
former NFL player who sued NHL for collision (for acting jointly to keep him out of the NFL as a result of political activism )
team ownership
- a club of privilege and power
2. teams are owned by extraordinarily rich men
balance quest for profit with need for competition
each team has a vested interest in ensuring financial viability of competitors as well as on-field competitiveness
economic rent
a return in excess of a resource owners opportunity cost that teams collectively secure