Chapter 9

Question 1

3 principles that form the professional sport industry:

Answer 1

• labor
• management
• governance

Question 2

History of major pro sport:

Answer 2

-

Question 3

Inclusion/exclusion of major pro sport:

Answer 3

-

Question 4

Factors affecting growth of major pro sport:

Answer 4

-

Question 5

Unique aspects of pro sport:

Answer 5

• interdependence
• structure and governance
• labour-management relations
• role of electronic and new media

Question 6

Interdependence of pro sport:

Answer 6

• nature of the leagues product
• need of teams to compete and cooperate simultaneously
• league think
• revenue sharing
• competitive balance

Question 7

Structure and governance of league sport:

Answer 7

• league commissioner
• board of governors or commitee structure composed of the team owners
• central administrative unit
• territorial rights
• reduce intra-league competition

Question 8

Labor-management relations of league sport:

Answer 8

• antitrust and labour exemptions
• collective bargaining
• players want competitive labour market
• restrictions on player mobility (free agency, player draft)
• restrictions on management (salary cap, luxury tax)

Question 9

Importance of television:

Answer 9

• increasing visibility
• increasing source of revenue
• sport/media complex

Question 10

Revenue sources for pro sport teams:

Answer 10

• media contracts
• gate receipts
• licensing and merchandising revenues
• sponsorship
• public subsidies for facilities

Question 11

Future challenges and opportunities for pro sport:

Answer 11

• maintaining labour-management harmony
• developing new revenue streams
• meeting technology challenges
• managing globalization