The Sports Industry
December 6, 2010
The sporting industry has been around for a long time and involves many complex aspects of business. The sports industry is synonymous and goes hand in hand with entertainment, the media, consumers, suppliers, and owners and organizations. In other words, almost all of our present day societies routinely use sports as spectacle and entertainment for the people. Especially in the United States the sporting industry is a huge player in the overall economy. The sports industry has been experiencing tremendous growth over the past two decades. This growth has been driven by sports marketing and the increasing media coverage of sporting events based on sports popularity among the local viewers. Satellite TV, sports networks like ESPN, ESPN2 and ESPN Classic and the traditional networks efforts to compete with them provides consumers with hundreds of thousands of hours of sports coverage at their disposal annually. It is estimated that the sports industry generates $213-$350 billion per year in revenue. The Washington Redskins NFL franchise alone generates roughly more than $220 million in annual revenues (Badenhausen, 2007). With so much money being thrown around the industry, players, owners, and agents are bound to disagree every once in awhile. This is happening right now in the NFL and is an ongoing debate and issue that has yet to be solved.
In 1993, league owners and the Players Association negotiated a new Collective Bargaining Agreement that allowed players the right to free agency and put a cap on teams spending. This deal also brought about the idea of league wide revenue sharing which means that every team shares a percentage of their income with other teams within the league. These two claims were huge adjustments to the league because for the first time players had the right to leave a team after a contract was up or negotiate a new one while not allowing teams...
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