Chapter 13 - Sport, Economics, and the Public Subsidy of Professional Sport Flashcards

1
Q

relation with conflict theory and professional sport

A

labour relations and the circulation of commodities obscured by ideology

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2
Q

major leagues

A

understood as a cartel that are exempt from anti-trust laws

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3
Q

anti-trust laws

A

competitor franchise join together for mutual benefit by coordination production and pricing

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4
Q

cartel

A

exert monopoly power within a restricted market, restricting supply of franchise preventing competition

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5
Q

franchise

A

the right to offer a nationally known, brand name product (NHL) in a protected market area

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6
Q

reason for cartels restricting output quantity

A

limited supply of franchise, length and timing of season, and increase prices to earn monopoly

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7
Q

monopoly rent

A

profits above what would be earned in competitive market place

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8
Q

monopoly

A

a market with only one seller

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9
Q

monopsony

A

market with only one buyer

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10
Q

use of monopsony in major leagues

A

power to secure labour of the best professional players

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11
Q

reverse clause

A

system of indentured servitude that bound players to a specific team for the duration of their careers

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12
Q

Colin Kaepernick

A

former NFL player who sued NHL for collision (for acting jointly to keep him out of the NFL as a result of political activism )

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13
Q

team ownership

A
  1. a club of privilege and power

2. teams are owned by extraordinarily rich men

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14
Q

balance quest for profit with need for competition

A

each team has a vested interest in ensuring financial viability of competitors as well as on-field competitiveness

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15
Q

economic rent

A

a return in excess of a resource owners opportunity cost that teams collectively secure

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16
Q

single-entity cooperation

A

sets structure for play to occur (schedule, rules and regulations)

17
Q

joint venture cooperation

A

cooperative structure unrelated to play - broadcasting rights, revenue sharing and labour agreements

18
Q

pursuit of revenues in pro sports

A
  1. game day revenues (tickets, concession, parking)
  2. local broadcasting revenues
  3. sponsorship revenues
  4. shared revenues
  5. postseason appearance
19
Q

why are players salaries the largest operating expense

A

due to the collective bargaining of players unions

20
Q

collective bargaining agreement

A

process of negotiating between owners and players union

21
Q

what is the role of a collective bargaining agreement within a major league

A

specifies maximum roster size, salary cap, pension, working conditions, drug testing, etc.

22
Q

bilateral monopolies

A

monopoly union negotiating with monopoly leagues

23
Q

relation between professional sport and public subsidy

A
  1. in 1960 competitions between cities had limited number of pro sport franchise
  2. many franchise have taken advantage of these competitions
24
Q

issues with building arenas

A

scarce public funds will increase as arenas and stadium developments become Moore extravagant and as the business model of pro sport expands to include greater revenue streams

25
Q

the relocation of Oilers

A
  1. owner Peter Pocklington threatened to move oilers to Hudson
  2. complained about very low value of Canadian dollar exploding players salaries and less revenue in a small market