Chapter 10

Revenue Sources for Teams

Includes media rights, premium seating, sponsorship deals, gate receipts, food and beverage sales, and parking fees.

Expense Management in Professional Sport

Major expenses include player salaries, stadium maintenance, travel costs, and marketing efforts.

What is Corporate Governance in sports ownership?

A model where owners act as a board of directors and the commissioner serves as CEO.

Key factors when considering a new franchisee

Financial resources, community commitment, sports commitment, government relations, and owner character.

NFL Franchise Ownership Rules

Requires a controlling executive with 30% equity and prohibits corporate ownership.

Who was the first commissioner of baseball?

Judge Kennesaw Mountain Landis, appointed during the Black Sox Scandal in 1920.

Definition of Collective Bargaining Agreements (CBAs)

Contracts negotiated between players’ unions and league management regarding player relations.

What happens when negotiations fail in CBAs?

Players can strike, and owners can lock out players.

Factors influencing Franchise Valuations

Revenue sharing, stability of labor relations, market size, brand success, and media rights value.

Role of the commissioner in sports leagues

Ensures league stability, expands revenues, addresses labor relations, and upholds league integrity.

What is Cross-Ownership in sports?

Owning multiple franchises, which was banned until 1997 but is now allowed under specific conditions.

History of Labor Relations in sports

The rise of player unions in the 1960s and transformation into a business model during the 1970s.

William Hulbert's contribution to baseball

Established the National League of Professional Baseball Clubs in 1876 and introduced rules for team stability.

Contribution of Marvin Miller

First executive director of the MLB Players Association, pivotal in collective bargaining and player rights.

Commissioner Roger Goodell's focus

Player safety, global expansion, and revenue growth in the NFL.

Don Garber's role in MLS

Commissioner since 1999, overseeing growth and international recognition of Major League Soccer.