Unit 13 Flashcards
What are false ideas about sport?
• Accessible
• Unifying
• Egalitarian
• Democratic
• Humanist
• Sain
• Sport = Health
• Altruistic
• Inclusion
• Peace
• Positive image
What factors contributed to the emerge of professional sport in North America?
• Urbanization
• Industrialization
• More free time – to play, to consume
What are the 2 structures of sport?
Closed leagues and open leagues
What is a closed league?
- Executives have complete control over the amount of franchises in the the association. They decide who the owners are and where franchises are located.
- A kind of monopoly on the sport
- Ex: MLB, NBA, NFL, NHL
What is an open league?
New teams enter and leave the association based, more often than not, on merit. If a team does not perform, it can be sent to an inferior association, and vice-versa.
Because the goal is to make money, what happens to some franchises?
Every franchise has a value
Some franchises fold or have to move cities because it’s too expensive
What is a commissioner and how do you become one?
The commissioner serves as a mediator in case there’s problems in the league.
The commissioner is a member of the administrative council who by election becomes the leagues commissioner
What is the problem with the commissioner?
The commissioner makes a lot of money and all he does is imposes the rules and the structure of the league and decides what happens to the players
What do professional leagues form?
A joint production
What is a joint production?
A team of people who work together to ensure that their product works
What is the goal of the joint production?
The goal is to sell and ensure the functioning of a joint product, in the case of the NFL, the product is football. This means that no one person has the monopoly on the league.
The reason for this is for the league to work, for the product to work, there needs to be competition. No competition, no results, no money.
What are 2 things that the league must ensure?
• The uncertainty of the result: unpredictable so people will be intrigued
• Balanced competition: salary caps, drafts, etc
The structure of the administrative council has often
been compared to a _______
Cartel
- Ensures that everyone has monopoly but everyone needs to work together to hold the monopoly
How can there be monopoly in the enterprise?
Territorial Control
- they don’t want 2 teams within a 241km radius
Doesn’t always work
- 3 teams in LA
- 2 teams in New York
Toronto has the leafs, blue jays and raptors
The professional leagues in North America have a _______
Monopsony
What is monopsony?
This means that one buyer has complete control on the market.
They control the players
- You want to play professional football, you go to the NFL (or CFL)
- Hockey? NHL
- Baseball? MLB
- You do not want to play for any of these leagues? Play in your backyard.
To control the market and to keep things competitive, leagues have what two things in place?
The drafts and the salary caps
What happens if a team spends beyond salary cap?
They must pay a luxury tax to the league.
What are the 2 reasons for the salary caps?
• According to owners: Keep the competition balanced.
• According to sociologists: Entrench a power relation in the league. Ensure that the players don’t make too much money while continuing to produce a good product.
How do the ensure to make money?
Attendance
Inflation
Where the game is
Pay more depending on the popularity of the team
Pay more depending on the teams performance
- Ex: if they play against a good vs a bad team
Depending on the event
- Ex: opening night, Stanley Cup game, etc
Depending on the time of the week
- week day vs weekend
Depending on where the seats are
- Courtside vs nosebleeds
Broadcasting
Sponsors pay to have their logo on the stadium