Sports Law Cases And Materials: Business Analysis

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Cozzillio, Levinstein, Dimino, & Feldman (2007) in their book entitled Sports Law Cases and Materials depict two primary league structures. The two primary league structures are the traditional model league and more recently the single entity business model. Both league structures are being used by professional sports leagues with in the United States as well as abroad. Currently, the most recognizable league structure is the traditional business model. Examples of the traditional business model include the National Football League, Major League Baseball, National Hockey League, and the National Basketball Association. The individual teams that make up these traditional business models are governed as independent joint ventures among individual teams…show more content…
Thus wealthy backers are more likely to capitalize in traditional sports leagues than in single entity business structures. For this reason, investors are fully able to control individual club operations and compete for league championships on a regular basis. In addition, traditional business models have an easier mountain to climb when raising funds for capital improvements (Jakobsze, 2010). Secondly, the traditional model affords independent club owners the ability to implement their own distinct business approaches and plans in order to achieve their organizations desired results. Thus, allowing each traditional model the ability to promote innovation. For example, after a few MLB clubs successfully experimented with variable priced ticketing; many other clubs that would have initially opposed this tactic eventually adopted the practice of variable priced ticketing methods (Rosner, 2004). Thirdly, the traditionally structured league encourages team owners to think globally, while maintaining the all-important local connection to the surrounding communities. Likewise, each team owner governs his

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