current issues midterm Flashcards
(17 cards)
3 generations of professional team owners
- original (player/coaches)-
- Second (multimillionaires w/ interest in sport)- made money in other businesses but interest in sport led them to buy a team
- third (purchases for business, pleasure, corp.)- accumulated vast fortunes through outside business interests and have purchased teams for a variety of reasons
list and explain the 3 professional sports franchise ownership models
- single independent wealthy owner
- pool of individuals pooling resources
- single entity structure (mls)- controlled by a single operating company, investments are made in the company rather than a single franchise
3 major reasons why sport franchise corporate ownership is waning
- investor and analyst pressure- when companies as struggling they are pressured to return to their main core business
- seasonal revenues
- quarterly pressure to report
primary reasons why owners struggle to be successful in owning/managing pro sports franchises
pursuing victories in additional profits
separate emotion from logic
dissimilar to other ventures
4 professional league structures
- closed league- like most US sports leagues
- single entity structure- controlled by a single operating company, investments in the league rather than the team
- open model- teams to enter and depart the lower leagues within a domestics league hierarchy depending on competitive success and failure- promotion and relegation
- super league - top teams from each countries top domestic league in a particular geographic region complete against each other for regional supremacy
mechanisms leagues use to promote competitive balance
- reverse order draft
- salary cap/floors
- luxury tax
- relegation/ promotion
- revenue sharing - provides teams with an increased ability to spend more on players salaries thus remain more competitive
2 types of team revenue and 3 examples of each
local- ticket sales, facility naming rights, luxury and club seating premiums
national - national broadcasts, league wide sponsorships, consumer products and licensing
3 most common forms of sport venue concession vender contracts
profit/ loss agreement - concessionaires receive all profits but also bare all expenses
profit sharing- venue is paid a commission based on concessionaires profits
management fee agreement -paid a management fee
2 largest sources of team debts
- facility construction
2. purchase agreement
5 team expenses
- player compensation
- staff compensation
- marketing
- research and development (scouting)
- facility
define Collective bargaining agreement and 3 reasons why it is important
the laws and guidelines that govern relationship between management and union
- cumulative wages are largest expense- 50-60% dwarfs percentage in other industries
- average playing career is less than 5 years error in cba can impact players earning capacity over career
- major leagues represent top level of competition - no players no league
Why is local revenue more important to mlb teams than it is to nfl teams
Since the nfl only has 8 home games it relies more on national television contracts. Since the mlb plays 81 home games their is more revenue to be made their
3 types of ticket sales
Season
Individual
Group
Research and development of the NHL and which league has the largest r&d and why
Scouting and AHL
MLB highest because the many different minor league affiliates
Why should league wide stoppage occur? What is the difference between a lockout and a strike? Why did the Nfl owners impose the 2011 lockout?
When one party seeks a sea of change
Lockout - owners
Strike- by players
Owners wanted more money due to increased stadium maintenance expenses
5 fundamental issues addressed in NBA CBA
Revenue split of 3.5-4 billion Competitive balance Hard vs soft cap Increased revenue sharing Contract length/ guarantee
When was the first CBA reached and by whom
1968 between MLB & MLBPA
