Assignment #1 Directions:.
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Added on 2019-09-23
Assignment #1 Directions:.
Added on 2019-09-23
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Assignment #1 Directions:Compare how the Major League Baseball’s “Owner/Team Focused” philosophy with theNational Football League’s "Corporate / League-Think” focused philosophy and theireconomic structure have impacted their growth over time.The major history of the American football league has been filled with the constant battle of theowners along with the players, in order to get a fair competitive pay for the hard working playersand to generate a profit-maximizing model for the owners. With the constant battle in betweenthe players and the owners, the fan in between is aiming and wanting to have an enrichedentertainment experience along with the competitive experience. Even after many leaps andbounds steps taken in improving the collective bargaining to improve the synchronization andhave a fair pay to the players and to the owners, still, negotiations have been major agenda of theCBA.In comparison, both the MLB and the NFC share the major focus on the free agency, salary caps,exceptions, negotiations, and the profit sharing model. Each league has an involvement andcontribution towards improvement in the ideologies of the league and the best benefit which canbe derived for each of the players and the owners. Both the leagues have there share of the legalramifications and conflicts coming to an agreement which is termed as major elements of theCBA. In comparison, both the leagues have gone in-depth to attain a position of the popularitywithin the US and are able to generate the major revenue models. In the comparison of theoperating income, NFL has led and earned a total of the $ 35 million while the MLB has earned
an income of the $16 million in 2005. Due to the higher income, it has resulted in the majorconflicts and issues due to demand in the major sharing of revenue model in between the playersand the owners. All the leagues follow the philosophy of the free agency and it has a predominant contractualclause of the players playing for the free agency was adopted. The free agency means that theplayer is bounded by one team and it ought to play for the one team after signing it. He is notallowed to play for the other team and the other team needs to pay heavy money and penalties inorder to attain the player. The MLB was able to attain the status of the reserve system through the antitrust exception,which was attained during the legal battle in 1992. In the fight, the reserve right wasextinguished and the free agency status was attained. Even in the MLB philosophy of theowners/team focus, it still allows the clause of the free agency, which is to allow any team playerto play for any team and vice versa. The distinguishing features are the restricted and theunrestricted free agents. There is a proper procedure to get the free agent. Both in the NFL andthe MLB, there is a restricted free agent which is to allow the team to avail the contracts from theformer team and can refuse it, which can be compensated with a draft pick in the next occurringplayers draft (O’Leary, 2017).The NFL has a salary caps which does not allow the teams to win a player through the sheeramount of the money which can be paid eventually, but the MLB philosophy of the free agenthas played a major role and attribution in the changing the player teams and movements.MLB is the only team which does not have a salary cap but it has a taxes which can go above thesalary of the team limit. It is often seen that the MLB has been paying the taxes which go above
the salary caps of the players limit. While the NFL has a philosophy and is said to be the onlyteam which has a hard salary cap, which means that the team cannot go above the salary capsand it also does not allow the team to go above the cap. It is also seen that the NFL has certainloopholes which would result in the salaries to be paid above the amount of the salary decided.The NFL pays a higher percentage of the designated gross revenues to the players and it alsodoes not attribute into the sharing the revenue from the concession in luxury boxes whichaccounts for the significant amount of the revenue. NFL also has a salary given in the form of thebonus to the players. As there are no signing fees or there are series of uncertainty within thefootball game, hence there is a signing guarantee bonus which is given to the player by the NFL.It also has a performance incentive bonus which is given to each player. MLB comes in themajor criticism with no salary caps (Kraeutler, 2017). This comes as an individualistic capitalismwhich is adopted by the MLB which one can see no union or the owners are able to agree on thesalary caps.It was observed with the NFL philosophy of the corporate league think, the players were able toearn more than their salary caps while with the MLB philosophy of the Owner Team focused, theowners were not able to decide upon the salary caps of the players. Due to this, the MLB has aharsh criticism of the not applying the caps and hence it makes play more uneven, but there isstill more parity in MLB then there is in the other two leagues which are viewed as a number ofteams which has a more realistic chance to win the world championship. Though one can see themajor differences with the small salary player and the high salary player both playing the samegame, but due to the free agents the MLB team is able to significantly manage its team. It hasbeen seen with the individual salary caps it would result in the increasingly competitive
imbalances. Due to this, a there economic structure has significantly increased and changed withover the years of time (Dabscheck, 2015). ReferencesDabscheck, B. (2015). An orbit of coercive comparison: Collective bargaining in the AustralianFootball League and the National Rugby League. InThe Sports Business in The Pacific Rim(pp.333-352). Springer International Publishing.Kraeutler, M. J., Carver, T. J., Belk, J. W., & McCarty, E. C. (2017). What is the Value of aNational Football League Draft Pick? An Analysis Based on Changes Made in the CollectiveBargaining Agreement.The Journal of Strength & Conditioning Research.O’Leary, L. (2017). Introduction. InEmployment and Labour Relations Law in the PremierLeague, NBA and International Rugby Union(pp. 1-18). TMC Asser Press.
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