Governance Issues in Professional Sport
                         Chapter 4
Hardest topic for most Sport Management students?



                          Anti-trust
Sherman Antitrust Act



Section 1
Prohibits joint action between
  two or more parties that
unreasonably restrains trade
...
Sherman Antitrust Act
                 Section 2

Prohibits predatory or exclusionary conduct that
 enables an organizatio...
Focus of antitrust law--maintaining economic
               competitiveness
Sport teams are exempt from technicalities
               of anti-trust
     There is an interdependence of teams
Sport leagues protected from antitrust laws because of
             sport governance structures
Three bureaucratic layers:
   The commissioner

League board of governors
   or owner’s committee

 Centralized league off...
Also...
Power of the Commissioner




Authority to impose disciplinary measures on owners
      Approves player contracts
        ...
Commissioner Limitations




     Owners have the authority to fire

  Must adhere to the league’s constitutions and bylaws
Pro Sports League Structure
League office conducts
centralized league operations
League board of directors or owner’s
  oversee policy making on issues
Individual teams are responsible for team
    operations, including: facilities,
        marketing tickets, etc.
League set rules and
eligibility standards for
     acceptable owners
Owners outline the restrictions on
      franchise relocation
Owners also...




1. Determine how to restrict the supply of players
2. Restrict television exposure
3. Restrict playing sites
Individual Sports Governance
Not employees

           Not exempt from antitrust laws




Often considered independent contractors
Event promotors or
  producers are in
charge of individual
       events
Players associations may officially sanction
      some events & not others
What is a players association?
Players associations shape policies &
 establish disciplinary procedures
Want to know more about me?

                Visit:




       www.DrChrystal.com

                 or

http://www.linkedi...
Governance Issues in Professional Sports
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Governance Issues in Professional Sports

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Transcript of "Governance Issues in Professional Sports"

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

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