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

Professional Team Sports - prove ExampleMaking profits is a key aspect in any art think (Wladimir and Stefan, 2006617). This understanding has created interest in finding out the real effect of decisions made by baseb each ordering owners and franchise on the structure and regulation of fusions around the world. This paper therefore seeks to interrogate the different ways in which the objectives and decisions of club owners in professional sports affect the overall sporting arena. In order to sire 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 two clubs will be infallible to ensure better products to the fans. If one club is far better than the rest and keeps on winning all impales with ease, the products become so predictable and therefore little securities industryable to the fans (Wladimir & Stefan, 200627). Fans will get bored i n watching a team that wins with big margins repeatedly and so need some degree of dubiousness for them to enjoy watching the game. This phenomenon of the professional sports as an industry has led to the development of cooperation among clubs and the adoption of governing bodies supercharged 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 profitable 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 consecrate a considerable amount of the countries GDP. Baseball, basketball, indoor sports, golf, athletics, and Olympics in general all form a multibillion-dollar preservation (Masteralexis and Hums, 2002295). The graph below shows how reve nue from sporting activities has increased over the years. Figure 1 graphic congressman 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 lark about 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 tug market (Stefan, 200747). Here, the free relocation and transfer of players 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 t he best talent there is in the market 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 obviously means very high revenues for them where as the poorer clubs will only have small flesh of fans in