An Absence of Competition: The Sustained Competitive by Neil Longley

By Neil Longley

This ebook takes a multi-disciplinary method of reading the character of ‘competition’ and ‘competitive virtue’ in the U.S. seasoned game undefined. via 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 profitable enterprise entities within the nation. whereas those demonstrated leagues have normally been hugely ecocnomic all through their respective existences, the previous 20 years were fairly profitable, with franchise values in all 4 leagues becoming swiftly, and at degrees way past industry premiums of go back. inside this context, the e-book seeks to discover the character of the aggressive virtue that those leagues it seems that own. the aim is to spot not just how those leagues were capable of get to the place they're at the present time, but in addition to ascertain the aggressive threats and possibilities that those leagues face as they stream ahead. A key contribution of the publication is that it analyzes those matters from a multi-disciplinary method together with a standard economics viewpoint, public coverage and public selection concept and strategic administration, to supply a parallel cause of the good fortune of every of the 4 significant leagues. It argues that no unmarried conceptual strategy can, in itself, thoroughly clarify the complete richness of the problem. Its stresses that those a variety of methods may still in general be seen as enhances, instead of as being together specific, and complete knowing of the problem calls for one to undertake a multi-disciplinary point of view, making it of curiosity to students in strategic administration, recreation administration, and economics. it will probably function a good educating instrument in either graduate and upper-level undergraduate classes for college students in those fields, and is especially beneficial for colleges looking to emphasize to their scholars the significance of a multi-disciplinary, integrative, strategy while reading enterprise and administration concerns. The e-book can also be of curiosity to leaders in the game itself, and should aid to supply perception and viewpoint as leagues search to reinforce their aggressive virtue within the marketplace.

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Extra info for An Absence of Competition: The Sustained Competitive Advantage of the Monopoly Sports Leagues

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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.

Almost all teams are privately held and hence have no obligation to publicly reveal their financial performance. Nor do these teams generally have any incentive to voluntarily release this information. , fans, players’ associations, and cities regarding stadium funding, in the hope that this will increase their bargaining power with these groups. In addition, liberal tax rules that have existed for over half a century allow pro sport teams to depreciate player contracts, thus making their reported “net income” figures well below their actual cash flows.

Contrast this with the other three leagues, where franchises are allowed to sell media rights in their local markets. 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.

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