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Governance Issues in Professional Sports
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Governance Issues in Professional Sports

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Lecture from my sport law class

Lecture from my sport law class

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  • 1. Governance Issues in Professional Sport Chapter 4
  • 2. Hardest topic for most Sport Management students? Anti-trust
  • 3. Sherman Antitrust Act Section 1 Prohibits joint action between two or more parties that unreasonably restrains trade in a relevant market
  • 4. Sherman Antitrust Act Section 2 Prohibits predatory or exclusionary conduct that enables an organization to acquire or maintain monopoly power in a relevant market
  • 5. Focus of antitrust law--maintaining economic competitiveness
  • 6. Sport teams are exempt from technicalities of anti-trust There is an interdependence of teams
  • 7. Sport leagues protected from antitrust laws because of sport governance structures
  • 8. Three bureaucratic layers: The commissioner League board of governors or owner’s committee Centralized league office
  • 9. Also...
  • 10. Power of the Commissioner Authority to impose disciplinary measures on owners Approves player contracts Create rules Offer dispute resolution Act “in the best interests of the game”
  • 11. Commissioner Limitations Owners have the authority to fire Must adhere to the league’s constitutions and bylaws
  • 12. Pro Sports League Structure
  • 13. League office conducts centralized league operations
  • 14. League board of directors or owner’s oversee policy making on issues
  • 15. Individual teams are responsible for team operations, including: facilities, marketing tickets, etc.
  • 16. League set rules and eligibility standards for acceptable owners
  • 17. Owners outline the restrictions on franchise relocation
  • 18. Owners also... 1. Determine how to restrict the supply of players
  • 19. 2. Restrict television exposure
  • 20. 3. Restrict playing sites
  • 21. Individual Sports Governance
  • 22. Not employees Not exempt from antitrust laws Often considered independent contractors
  • 23. Event promotors or producers are in charge of individual events
  • 24. Players associations may officially sanction some events & not others
  • 25. What is a players association?
  • 26. Players associations shape policies & establish disciplinary procedures
  • 27. Want to know more about me? Visit: www.DrChrystal.com or http://www.linkedin.com/in/drchrystal