Professional Team Sports Essay Example | Topics and Well Written Essays - 2000 words

Professional Team Sports - Essay ExampleMaking profits is a key aspect in any business venture (Wladimir and Stefan, 2006617). This savvy has created interest in finding out the real effect of decisions made by club owners and franchise on the structure and regulation of leagues around the world. This newspaper publisher therefore seeks to interrogate the different ways in which the objectives and decisions of club owners in master sports affect the everyplaceall sporting arena. In order to get better sales in sports, high level of competition is required unlike in business where monopoly is the ultimate goal. If there are championships or leagues, the participation of more than than two clubs will be necessary to ensure better products to the fans. If one club is far better than the rest and keeps on winning all games with ease, the products have so predictable and therefore less martable to the fans (Wladimir & Stefan, 200627). Fans will get bored in watching a team that wi ns with big margins repeatedly and so need some degree of uncertainty for them to enjoy watching the game. This phenomenon of the maestro sports as an manufacture has led to the development of cooperation among clubs and the adoption of governing bodies charged with ensuring that the industry attains its optimal production capacity by way of organising championships and leagues. These leagues are highly competitive and as such have become some of the most productive enterprises around the globe. For instance, the European champions league, the Barclays premier league in England and the La-liga of Spain are some examples among many leagues in football that are leading income earners for the respective clubs and contribute a considerable amount of the countries GDP. Baseball, basketball, indoor sports, golf, athletics, and Olympics in general all form a multibillion-dollar economy (Masteralexis and Hums, 2002295). The graph below shows how revenue from sporting activities has incre ased over the years. Figure 1 graphic illustration of increase in revenue in the sports sector associated with increasing commercialization Retrieved from http//www.econweb.com/MacroWelcome/sandd/D-Shift_New_Equilibrium.gif According to some economists, this feature of professional sport is quite favourable as it eradicates monopolies, which are responsible for poor quality of products or services offered and high non-commensurate prices. In the end, the whole arena of professional sports forms a model of free market where competitiveness of the product offered carries the largest share. This competition however is not always healthy especially with respect to the labour market (Stefan, 200747). Here, the free relocation and transfer of run awayers from one club to the other based on the wages has made the wealthier clubs maintain a grip of the top leagues and championships over the less wealthy clubs. Therefore, wealthy club owners can get all the best talent there is in the marke t and thereby in a way kill competition, which is the very phenomenon on which the industry thrives (Rodney, 200425). This has resulted to creation of oligopolistic cartels where the higher level of game is exclusive to the rich clubs where as the less wealthy clubs play in the lower divisions that are less competitive and less famous among the fans ((Wladimir and Stefan, 200664). This means that fans will be flocking the gates only when big teams are playing. This on the face of it means very high revenues for them where as the poorer clubs will only have small number of fans in