Franchise Ownership Structure

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Franchise ownership structure has the ability to be more profitable for the league and its owners because it allows all owners the ability to maximize their own profits. And then all league wide revenues are divided evenly among the owners. However, there are problems with this league structure. In this type of league structure there is the issue of collective bargaining agreements. Which allows the players a share of all league wide revenues. It also allows players other rights that are negotiated during CBA negotiations that allow players to become more profitable themselves. In this type of league structure all franchises must have a significant amount of financially backing so that they can be competitive in the league and continue to increase revenue. Also in a franchise ownership model the league has the ability to prevent teams from relocating. In the legal case City of San Jose v. Office of the Commission of Baseball the City of San Jose sued the MLB from preventing the Oakland A’s relocating to San Jose, California. MLB argued that the A’s moving to San Jose would infringe on another franchises territory. The second issue that needs to …show more content…

Pro Football is another case worth noting when discussing player eligibility rules. Smith challenged the professional football draft system, with regards to when a player is drafted by a team and is unable to agree to a contract then he cannot play in the league. Smith believed this violated antitrust, under the Sherman Act. The court ruled that draft was not illegal because its purpose was not to exclude competition at the same level as the football league. This is an important case for the PPL, because if players do not sign with the team that draft them we need to have the ability to prevent them from signing with another team. The PPL because it is a new league needs to establish that all players who are drafted must sign with the team that drafted them to contain a competitive balance throughout the

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