SPORT BUSINESS PRACTICES QUIZ 2
Single Entity Ownership - Correct Answers -the league and teams are owned by a
single ownership group
players sign with league
all of teams are run and owned by the league
employees are paid by league
shared by pool and divided by who needs more money
ex) MLS, XFL
What are the possible advantages of organizing as a single entity? - Correct Answers -
player distribution
competitive balance
player salary control
team location
revenue sharing
expense sharing
spread risk
small v large market
marketing league as a whole
antitrust law
What are the possible advantages of a single entity - Correct Answers -lack market and
regional specialization
revenue sharing
ROI doesn't equal marketing/success
competitive balance
lack of competition
risk of whole ship going down
autonomy
What are the possible advantages of distributed club ownership - Correct Answers -
brings out highest level of competition for talent and revenue
private equity investment - Correct Answers -Idea of buying an underperforming
business turning it around and selling it for a profit
, capital gains - Correct Answers -You may have a team and they may lose money
season after season for 10-15 seasons. The value is rising
Beneficial tax incentives - Correct Answers -Idea that if your team loses money at the
end of the year, end of the year taxes can take loss across all entities
What are the possible disadvantages of distributed club ownership - Correct Answers -
Competition between owners can lead to conflicts between diverse interests and tend to
drive up player expenses
Broadcasting (XFL vs MLS) - Correct Answers -XFL- NBC prime time
MLS- ESPN2, ABC, ESPN
Team Placements (XFL vs MLS) - Correct Answers -XFL- placed where no NFL except
big cities
MLS- Bidding process
Salary Control/Competitive Balance (XFL vs MLS) - Correct Answers -XFL- scale pay
based on position
MLS-league salary cap
5 foreign players per team
spread the wealth
Marketing Strategies/ Target Market - Correct Answers -MLS- emphasized hispanic
population, limited foreign players
XFL- targeted both football and wrestling fans
Why did the XFL fail - Correct Answers -to target both football and wrestling
tried to compete with NFL
product was shitty
network tv deal with NBC( couldnt go to other network, everyone could see)
loss of sponsors
Antitrust - Correct Answers -used to describe any contract or conspiracy that illegally
restrains trade and promotes anti competitive behavior
Theory of freedom of competiton - Correct Answers -the american economy depends
upon the law of supply and demand
Single Entity Ownership - Correct Answers -the league and teams are owned by a
single ownership group
players sign with league
all of teams are run and owned by the league
employees are paid by league
shared by pool and divided by who needs more money
ex) MLS, XFL
What are the possible advantages of organizing as a single entity? - Correct Answers -
player distribution
competitive balance
player salary control
team location
revenue sharing
expense sharing
spread risk
small v large market
marketing league as a whole
antitrust law
What are the possible advantages of a single entity - Correct Answers -lack market and
regional specialization
revenue sharing
ROI doesn't equal marketing/success
competitive balance
lack of competition
risk of whole ship going down
autonomy
What are the possible advantages of distributed club ownership - Correct Answers -
brings out highest level of competition for talent and revenue
private equity investment - Correct Answers -Idea of buying an underperforming
business turning it around and selling it for a profit
, capital gains - Correct Answers -You may have a team and they may lose money
season after season for 10-15 seasons. The value is rising
Beneficial tax incentives - Correct Answers -Idea that if your team loses money at the
end of the year, end of the year taxes can take loss across all entities
What are the possible disadvantages of distributed club ownership - Correct Answers -
Competition between owners can lead to conflicts between diverse interests and tend to
drive up player expenses
Broadcasting (XFL vs MLS) - Correct Answers -XFL- NBC prime time
MLS- ESPN2, ABC, ESPN
Team Placements (XFL vs MLS) - Correct Answers -XFL- placed where no NFL except
big cities
MLS- Bidding process
Salary Control/Competitive Balance (XFL vs MLS) - Correct Answers -XFL- scale pay
based on position
MLS-league salary cap
5 foreign players per team
spread the wealth
Marketing Strategies/ Target Market - Correct Answers -MLS- emphasized hispanic
population, limited foreign players
XFL- targeted both football and wrestling fans
Why did the XFL fail - Correct Answers -to target both football and wrestling
tried to compete with NFL
product was shitty
network tv deal with NBC( couldnt go to other network, everyone could see)
loss of sponsors
Antitrust - Correct Answers -used to describe any contract or conspiracy that illegally
restrains trade and promotes anti competitive behavior
Theory of freedom of competiton - Correct Answers -the american economy depends
upon the law of supply and demand
