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Work and Play The Business of Professional Sports.

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Presentation on theme: "Work and Play The Business of Professional Sports."— Presentation transcript:

1 Work and Play The Business of Professional Sports

2 I. Evolution of Sports Business Plight of players in post- WWII America Consolidation trend in American business Rise of a mass consumer culture Emerging national perspective Standardization of professional sports

3 I. Evolution of Sports Business (cont.) Emergence of organized professional leagues Club owners similar to the “Robber Barons” of an earlier era Sports industry of late 1940’s functioned as a cartel

4 II. Foundations of the Sports Cartel Baseball’s antitrust exemption (1922) --Federal Baseball Club v. National League NFL/AFL merger (1966) The Reserve Clause

5 II. Foundations of the Sports Cartel Waiver Clauses Annual Player Draft Rival Leagues were the only way to break the cartel --Mexican League (1946)

6 III. Slow Start for Players Labor Organization National political climate --Taft-Hartley Act (1947) --Red Scare American Baseball Guild (1946) --Larry MacPhail

7 IV. The Business of Professional Football Blackout rights (1953) Failure to gain antitrust exemption NFL a model of harmony and cooperation Immigrant Catholic culture as a cement among owners The role of Pete Rozelle Challenges to player organization

8 V. Labor Organization in Hockey and Basketball Cultural and structural impediments to union activity in hockey James Norris-Arthur Witz conglomerate --Conn Smythe National Basketball Players Association (1961) Racial division within the Union

9 VI. Organizing Baseball Players “Dog Fight” world of baseball ownership Franchise shifting beginning in the 1950’s The Dodgers go west (1957) --Walter O’Malley Major League Baseball Players’ Association (1953)

10 VI. Organizing Baseball Players (cont.) Median income of pro athletes rose in the 50’s and 60’s Star quality of pro athletes Sandy Koufax and Don Drysdale hold out in 1966

11 VI. Organizing Baseball Players (cont.) Marvin Miller’s leadership of the MLBPA beginning in 1966 Solidarity of the Players Association Influence of the Civil Rights Movement

12 VII. Establishment of New Franchises and Rival Leagues The AFL vs. the NFL Factors in creating new franchises --air travel --television --Federal tax laws --growth of the “Sun Belt”

13 VII. New Franchises and New Leagues (cont.) Emergence of New Leagues --Gary Davidson, the ABA, and the WHA --The USFL (1983) --Branch Rickey’s Continental League (1959)

14 VII. New Franchises and New Leagues (cont.) Flurry of new leagues, new franchises, and franchise shifting changed the structure of pro sports When losing could actually be winning CBS sells the NY Yankees to George Steinbrenner (1973)

15 VIII. The Threat of Franchise Shifting Owner loyalty to cities declined Al Davis moves the Raiders to Los Angeles (1982) Calls for congressional regulation of the sports business Opposition to congressional regulation

16 IX. Revolution in Players’ Salaries New demand for player services Balance of power shifts away from owners by the late 1980’s Baseball led the way Curt Flood challenges the Reserve Clause (1969) 1972 Baseball Strike

17 X. A Tale of Two Players’ Unions Major League Baseball owners agree to sign no free agents between 1986-1988 Weakness of the NFL Players’ Association --1987 NFL Players’ Strike fails


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