The impact of gate revenue sharing and luxury taxes on professional sports leagues within the context of a less restrictive demand function than those used in prior models is examined. It is found that the increases sharing of revenues may enhance competitive balance. It is also found that player salaries will diminish as the percentage of shared gate receipts rises. Several variations of luxury taxes are explored. All have the effect of lowering salaries. The impact on league balance depends on how the tax is implemented and on how its proceeds are distributed. As with salary caps, enforcement problems exist with the tax. Marburger, D. R. (1997). Gate revenue sharing and luxury taxes in professional sports. Contemporary Economic Policy, 15(2), 114-123. Retrieved from http://search.proquest.com/docview/274283978?accountid=35812 Conclusively stated, the writer found that the emergence of the professional sports industry has become an entity with which public policies have significantly affected the sports arena. Specifically, it was found that there are several features and trends that are observable about the role of antitrust laws in the professional sports industry from a financial perspective. Secondly, the writer found that governmental controls, regulations, and protections make up an array of historical, legal and economic factors involving owners, players, and fans. Thirdly, according to the Economist, the historical role of antitrust laws in the professional sports industry shows that this law has affected the industry through antitrust exemption granted in baseball, and not granted in football, basketball, and hockey (Andrews, 1998) and the writer agrees with this finding. Fourthly, findings from the Antitrust Bulletin show that if the structural reorganization of professional sports is the goal of the public or government, antitrust offers the requisite weapons for achieving it. For example, in professional sports, where a cartel of club owners exercises a monopoly power in the product market, and where powerful trade unions dominate the relevant labor markets, there is an almost irresistible tendency toward tacit vertical collusion (Adams & Brock, 1997). It is the writer’s view that this exercise of power will continue as each major league sport continues to become more commercialized through the websites of: www.nfl.com; www.nba.com; www.mlb.com; and www.nhl.com. Finally, the writer believes that the antitrust laws will continue to play a very important role because as history shows us, the professional sports industry has had many landmark cases that have helped to shape the industry of today from a financial and legal standpoint. Therefore, antitrust laws will affect the professional sports industry of tomorrow because of the principle of judicial review and profit-sharing. Furthermore, the author believes that the world of reality sports, including fantasy league sports participation, by billions of fans, will contribute to the growth of this “intriguing social phenomenon” and now “worldwide social phenomenon” known as the professional sports industry. Howard Bartee, Jr (2006). The Role of Antitrust Laws in the Professional Sports Industry From a Financial Perspective. ISSN: 1543-9518. Retrieved from http://www.thesportjournal.org/article/role-antitrust-laws-professional-sports-industry-financial-perspective
Although they are not conventional employees, professional athletes do sustain on-the-job injuries and are, therefore, eligible to file for workers’ compensation benefits. One big question that remains is where they are eligible to file a claim. During the recent labor discord between the National Football League (NFL) and the NFL Players Association, one of the big battles concerned workers’ compensation rights. The issue that distressed owners most was the ability of retired players to forum shop in hopes of getting the most money in compensation. To prevent such forum...
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