Franchises in Sport

Question 1

Define FRANCHISE

Answer 1

• When a person(s) buys the contractual rights to buy a team
• And operate this team in a specific region and any comp

Question 2

What are the PROS of FRANCHISES in sport?

Answer 2

• Less salary restrictions
• No relegation preventing -ve manager sacks and financial loss
• Best players can compete all the time
• More teams have a realistic chance to win
• Stadia and spectator facilities are great due to private investment
• Draft system for worse teams to receive higher drafts for even field

Question 3

What are the CONS of FRANCHISES in sport?

Answer 3

• New teams cannot enter unless board decides
• Teams that do not make play-offs have short seasons
• Boring as there is little variety
• Communities can lose their team as franchises move areas