Download An Absence of Competition: The Sustained Competitive by Neil Longley PDF

By Neil Longley

This ebook takes a multi-disciplinary method of interpreting the character of ‘competition’ and ‘competitive virtue’ in the U.S. professional recreation undefined. by means of 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) – are actually one of the most profitable company entities within the state. whereas those demonstrated leagues have ordinarily been hugely ecocnomic all through their respective existences, the previous 20 years were rather profitable, with franchise values in all 4 leagues becoming quickly, 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 appears own. the aim is to spot not just how those leagues were in a position to 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 movement ahead. A key contribution of the booklet is that it analyzes those concerns from a multi-disciplinary procedure together with a conventional economics point of view, public coverage and public selection idea and strategic administration, to supply a parallel reason for the luck of every of the 4 significant leagues. It argues that no unmarried conceptual method can, in itself, properly clarify the whole richness of the problem. Its stresses that those quite a few methods may still as a rule be seen as enhances, instead of as being at the same time specific, and complete figuring out of the difficulty calls for one to undertake a multi-disciplinary standpoint, making it of curiosity to students in strategic administration, activity administration, and economics. it could possibly function an efficient instructing software in either graduate and upper-level undergraduate classes for college kids in those fields, and is very priceless for schools looking to emphasize to their scholars the significance of a multi-disciplinary, integrative, strategy whilst examining enterprise and administration matters. The booklet can also be of curiosity to leaders in the game itself, and may aid to supply perception and standpoint 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

Sample text

In terms of the number of franchises, there is a high congruence across leagues. Three of the leagues—the NBA, the NHL, and MLB—have the exact same number of franchises (30), while the NFL has slightly more at 32. Not only are these current franchise numbers very similar, each league has shown similar growth patterns over the last several decades. 1 shows the number of franchises in each league, decade by decade, over the past half century. As well, the location of current franchises shows remarkable similarity across the four leagues.

16 2 Some Conceptual Foundations… In essence, then, established leagues have gone to great lengths to insulate themselves from competitive threats. , franchise) level, they are a direct result of the protections granted at the league level. , from a new franchise being granted entry into the market or from an existing franchise moving into the market. It is only through the formation of an entire rival league that individual clubs in the established league can face competition. , that it is leagues, and not individual teams, that are the critical entity in the North American sport business, and that it is leagues upon which one must focus in order to better understand the nature of business competition in the industry.

What is also important about league revenues is not just their absolute levels, but also their distribution amongst franchises. Different leagues have somewhat different levels of revenue sharing amongst their franchises, although there are some common principles and themes. First, all four leagues share national TV contracts equally amongst their member franchises. However, the impacts of this equal sharing vary substantially across leagues, based on the relative importance of the national TV revenues as a percentage of league total revenues.

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