National Governing Bodies In Sport Definition Essay
Market Structure of Professional Sports Essay
1982 WordsFeb 23rd, 20138 Pages
Economic theory introduces us to four different types of markets: perfect competition, monopolistic competition, oligopoly, and monopoly. Professional sports teams operate in an environment that is different than the typical business structure. The goal of this paper is to look at this industry, in particular the NFL, in an economics context and gain an understanding of the market structure of this unique industry. To do this I will discuss a brief history of the National Football League in the U.S. and how this organization is structured. I will also discuss typical market structures and type of…show more content…
Today, the National Football League (NFL) is the largest professional American football league, consisting of thirty-two teams from major American cities and regions. The league was formed in 1920 as the American Professional Football Association, and adopted the name "National Football League" in 1922. The NFL is one of the major professional sports leagues of North America.
Organizational Structure Professional sports league such as the NFL are unique organizations. These sports leagues are organized and operate under an organizational structure that is unique to this industry. By their very nature, sports leagues are cartels that exclude competition from other companies. You cannot start a baseball team and hope to play the Yankees unless you can get Major League Baseball (the cartel) to grant you a franchise. The antitrust laws prohibit cartels, but professional sports are the only private business in the United States that is largely exempt from those laws. Ever since a 1922 court decision (Federal Baseball Club of Baltimore v. National League et al.), baseball has been totally exempt. No other sport enjoys such a blanket exemption from antitrust, but all professional team sports have a labor exemption and, since the
A sports governing body is a sports organization that has a regulatory or sanctioning function. Sports governing bodies come in various forms, and have a variety of regulatory functions. Examples of this can include disciplinary action for rule infractions and deciding on rule changes in the sport that they govern. Governing bodies have different scopes. They may cover a range of sport at an International level, such as the International Olympic Committee and the International Paralympic Committee, or only a single sport at a national level, such as the Rugby Football League. National bodies may or may not be affiliated to international bodies for the same sport. The first international federations were formed at the end of the 19th century.
Types of sports governing bodies
Every sport has a different governing body that can define the way that the sport operates through its affiliated clubs and societies. This is because sports have different levels of difficulty and skill, so they can try to organize the people playing their sport by ability and by age. The different types of sport governing bodies are all shown below:
International sports federations are responsible for one sport (or a group of similar sport disciplines, such as aquatics or skiing). They create a common set of rules and organize international competitions. The promotion of the sport are also a task of an international federation.
Trusts are organizations or groups that have control over money that will be used to help someone else, such as the Youth Sport Trust.
National federations have the same objectives as an international federation, but within the scope of one country, or even part of a country, as the name implies. They support local clubs and are often responsible for national teams. National Olympic Committees and National Paralympic Committees are both a type of National Federation, as they are responsible for a country's participation in the Olympic Games and in the Paralympic Games respectively. However, a national governing body (NGB) can be different from a national federation due to government recognition requirements. Also, NGBs can be a supraorganization representing a range of unrelated organizations operating in a particular sport as evident in the example of the Northern Ireland Federation of Sub-Aqua Clubs.
Multi-sport event organizers are responsible for the organization of an event that includes more than one sport. The best-known example is the International Olympic Committee (IOC), the organizer of the modern Olympic Games. General sports organizations are responsible for sports related topics, usually for a certain group, such as the Catholic or Jewish sports groups. General sports organizations can also exist for the army and other groups, but they usually are medium-sized, as they do not have that much of a budget to work with.
Professional sports leagues are usually the highest level of play in sport, specifically if they consist of the best players around the world in a certain sport. Because of this, they usually work with national or international federations, but there is usually a separation between the different federations. Most North American professional leagues usually do not have amateur divisions, as the amateur divisions are mostly run in separate leagues. In addition, most professional leagues are related to other leagues, as players usually attempt to play in the league with the highest level of play. Because of this, promotion and relegation can occur; or, in league systems without promotion and relegation, clubs in professional leagues can have a team in the minor leagues. This enables them to shuffle players who are not doing well to the minor leagues, which will inspire them to contribute more to the team by playing better.