By Neil Longley
This e-book 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 professional 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 winning company entities within the state. whereas those proven leagues have regularly been hugely ecocnomic all through their respective existences, the prior 20 years were really profitable, with franchise values in all 4 leagues starting to be speedily, and at degrees well past marketplace premiums of go back. inside this context, the ebook seeks to discover the character of the aggressive virtue that those leagues it sounds as if own. the aim is to spot not just how those leagues were capable of get to the place they're this present day, but additionally to envision the aggressive threats and possibilities that those leagues face as they stream ahead. A key contribution of the e-book is that it analyzes those matters from a multi-disciplinary strategy together with a standard economics viewpoint, public coverage and public selection conception 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 procedure can, in itself, competently clarify the complete richness of the difficulty. Its stresses that those quite a few ways may still usually be seen as enhances, instead of as being jointly unique, and complete realizing 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 may well function a good educating software in either graduate and upper-level undergraduate classes for college students in those fields, and is especially invaluable for schools trying to emphasize to their scholars the significance of a multi-disciplinary, integrative, technique while studying company and administration matters. The e-book can also be of curiosity to leaders in the activity itself, and should aid to supply perception and standpoint as leagues search to augment 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
Example text
For example, of the country’s top-30 markets, the NFL is in 24 of these, MLB in 22, the NBA in 21, and the NHL in only 18. Perhaps most stark is the NFL’s lack of presence in Los Angeles, despite that market being the second largest in the country. There has not been an NFL team in Los Angeles since the Rams left for St. Louis in 1995 and the Raiders left for Oakland that same year. The NFL is presumably not returning to Los Angeles until a new stadium is built, but that position would undoubtedly change if a competitor league existed, since a competitor league would almost assuredly move into the unserved Los Angeles market.
The Washington Federals were reportedly in deep financial difficulties after the first season, and the club was sold to Sherwood Weiss, who planned on relocating the franchise to Miami for the 1985 season. While the 1984 season did have some bright spots for the league—for example, the expansion Jacksonville Jaguars were well received in that city and actually broke a USFL attendance record in the second week of the season, with an announced crowd of over 73,000—any successes were largely overshadowed by the increasingly acrimonious relationships amongst the owners and by the large-scale losses that many teams were suffering.
In addition to these changes to the USFL’s existing franchises, the league added several new expansion franchises for the 1984 season. Expansion was not a new idea—even before the leagues’ inaugural season, USFL founder David Dixon had always planned for the USFL to add four teams for the 1984 season. While some owners, like Tanenbaum of Philadelphia and Duncan of New Jersey, had long opposed expansion—feeling the league needed to stabilize before increasing in size—the large-scale losses incurred during the league’s 1983 season now prompted many owners to see expansion fees as a cash cow to offset at least some of their first-year losses.