• inclusion/exclusion by gender and ethnicity
• Ancient Greece began olympic games
• recruted from mercenary armies
• boxers, jokeys and runners (19 century)
• Jackie Robenson broke baseballs moder color barrier
• National Colored baseball
• All-white major league (lack of attendance)
• Negro national league
• Girls league (failed financial difficulty)

-

• Largely tied to media (promoted and financed professional sports)
• 1920 baseball radio
• 1950 tv
• sports broadcasting act- gave sports leagues an exemption from antitrust law, granting them the right to negotiate fees collectovely with the networks this legislation paved the was for highly lucrative wide television deals that pervade professional sports today.

1. labor
2. management
3. governance

1. Iterdependance- need for teams to compete/cooperate simultaneously

• "league think" all teams make sacrifices and concessions for the long term growth of the league

2. Structure and governance- league commissioner,board of governors or committee structure, composed of the team owners, a central administractive unit

3. Labor-management relations

-Baseball antitrust exemption(sherman antitrust act)

-collective barganing

-free agency

-salary cap

-player draft

4. role of electronic and new media

-importance of tv (sig rev source, enhanced enjoyment, increased sponsorship)

 emerging sources of media coverage (satellite, tv,internet)

need for teams to compete and cooperate simultaneously

pioneered and most effectively implemented by the NFL, this term represents the notion that terms must recognize the importance of their competition and share revenues to ensure that their competitiors remain strong.

(interdependance)

device used by MLB and the NBA to tax the teams that spend the most (or spend too much as defined by collective barganing agreement) on player payroll and those taxes are then shared with teams that do nnot have hight payrolls

(interdependance)

1. League commissioner

2. Board of governors or committee structure composed of the team owners

3. central administrative unit that niegotiates contracts and agreemets on behalf of the league and assumes responsability for shcedualing, licensing, record keeping, fines, disipline

(baseball's antitrust exemption)

this antitrust legislation was created to prohibit companies from dominating their respecive markets ininterstate commercial activity, thus creating a monopoly in which consumers have only one product choice rather than several. 

exemtion goves professional baseball team ownerssignificant leverage over the cities in which they operate.

process used to negotiate work terms between labor and management. all active league players are in a barganing unit and thus form a collective unit (labor) for negotiating and barganing with the owners(management)

drug testing, salary, discipline procedures

ability of players, after fulfilling an agreed-upon lective barganing agreement (cba) number of years of service with a team, to sell their service to another team with limited or no compensation to the team losinf the players. 

agreed-upon number of years

agreements collectively bargained b/w labor and managment that established a leaguewide team payroll threshhold that cannot be exceeded in most cases, is typically set using a percentage of league gross revenuses  as a starting point.

NBA

esigned to ensure parity b/w large and small market teams as well as b/w owners whose resources may vary considerably

MLB- no cap

"bird rule" high salery good player

designed to be an equitable system for distributing new talent among all league members. 

- sig revenue sources outlays from network, satellite, and cable tv

tv enhances the enjoyment associated with watching professional events

tv helps increase the amount tht teams and leagues can change for sponsorships because of the increased exposure that tv provides.

-media contracts (local tv contracts)

-gate receipts

92% revenue less relient becasue of media coverage NHL MLB still remain most revenu, and new proffesional leagues. 

-licensing and merchandising revenues- 

names and logos, video games and overseas 

-sponsorship

1. maintaining labor-management harmony in the face of rising salaries
2. developing new revenue streams
3. meeting the challenges created by technology
4. dealing with globalization

Microeconomics

The study of the behavior or individual businesses and households (Keat & Young, 2009)

Economic models explain behavior of producers and consumers

•• Models describe how markets operate •• Supply––Demandmodel

–– Demand and law of demand –– Supply and law of supply –– Market equilibrium –– Market surplus and shortage

Economic Impact of Sport Events and Facilities

Sport events bring a substantial amount of economic activity

•• Spending stimulates local economies •• Sporteconomicimpactstudies

–– Estimates of the change in net economic activity in a community

–– Measure the increase in revenues, tax dollars, and jobs attributable to a sport event or facility

Financial management falls into two areas

–– What to do with current financial resources –

– How to procure additional financial resources

•• Financial manager must choose the method for distributing the money

Financial Statements

Balance sheet displays the financial condition of a business at a single point in time.

• assets = liabilities + owners’ equity assets

- current assets - fixed assets (plant assets) - intangible assets

liabilities

- current liabilities - long-term liabilities

owners’ equity (= net worth)

liabilities + owners’ equity

Income statement

describe how much profit or loss was earned by a business over a given length of time

• income = revenue – expenses

• Revenue is the inflow of value to the business.

• Expenses include non-cash expenses such as depreciation.

revenue-expenses 

(Irene)

Income statement

Revenues – Expenses = Income

Net Sales - Costs & expenses - Depreciation

-------------------------------- Operating Income

+Non operating income -Non operating expense --------------------------------

Income before taxes - Taxes

--------------------------------- Net Income (NI)