1. SEM 2
1.03 Analyze cost/profit relationships to guide business decision making.

2. Terms to Know Reserve clause Free agency
Clause in a player’s contract which binds a player to a single team for a long period, even if the individual contract the player signed covers only one season.
Free agency
Allows players to explore options of moving to another team with little or no financial penalty
Higher player/personnel costs result from bidding wars for certain players
Since contract requirements vary among sport leagues, rules regarding players becoming free agents vary and, therefore, are not always a union voting option.

3. Unions Players Traditional Labor Often met with resistance
Different structures for different sports
Protect each player's rights and interests in terms of playing conditions, contracts, and salaries as a single unit and does not always include or result in resistance
Valued players can supply union with strength to face owners
Function the same as unions in other industries.
Depending on the terms of the players' contracts, players might decide to play for international leagues individually rather than as a group or union. Players do not generally vote to determine if they should ask for their fans' support.
Often met with resistance
One name or person doesn’t supply union with strength to face CEO
Negotiates and enforce collective bargaining agreements to establish fair pay, good benefits, and safe working conditions
Ex: UAO

4. Owners, Agents, and Players Relationship
Pleasing fans is a MAJOR consideration of ANY TEAM!
Must cooperate with business to succeed
All need each other
Fans want them to unite and act like a team
Easier to market a unified team and more likely to financially succeed

5. Reasons Players Unions Were Established
Provide formal representation to negotiate compensation and terms of collective bargaining agreement
Rights of players are protected
Ensures CBA are adhered to by league and the team
Negotiates and monitors retirement and insurance benefits

6. Purpose of Players Unions
Players have a voice/say in decisions.
Defend image of players and profession.
Protect each player's rights and interests in terms of playing conditions, contracts, and salaries as a single unit.

7. Issues with Which Players’ Unions Deal
Contracts
Working conditions (2 x’s days)
Salaries
Signing bonuses/rookie guarantees
Salary caps
Limits the amount a team can spend on contracts
Less profitable teams are protected from continual losses
Luxury tax is paid by teams that exceed the salary cap in the NABA and is split between less profitable teams
Player safety

8. Outcomes Associated with Players’ Unions
Positive
Negative
Safer working conditions
More lucrative contracts
Better environment
Higher injury protection benefit
Improved medical care standards
Can cost owners more
Drive ticket prices up
Changes sport from how it “used to be”
Pushes players to inhumane limits