Capitalism for the Cooperative The NCAA and NFL Model of对于合作NCAA和NFL的资本主义模式.ppt

Capitalism for the Cooperative: The NCAA and NFL Model of Parity and Profit Is equality among teams better for league organizers? Do NFL Owners wants parity? Why? Do NCAA members want parity? Why? NFL objectives Does this sound like capitalism? NCAA objectives Non-profit agency Safe environment for athletes Set rules on and off the field Goal: level the playing field so that all members can compete The NCAA a model of cooperation! Not the typical cartel. How can these sports oriented organizations inspire equality? 2. Monopsony behavior NCAA: players can not be paid Brown (1993) estimated the value of a Div I football player. NFL: Salary Cap Vrooman (1995) payroll cap is a form of “cost sharing collusion.” Players receive a max of 64.25% of Defined Gross Revenue in 2004 range was $75 million to $63 million 3. Side Payments Side Payments are necessary to maintain the loyalty of all members. NCAA: Revenue Distribution Plan In 2003 they distributed $264 m - Top 6 (of 31) Conferences received 50% - BCS is guaranteed revenue for major conferences - Negotiates tournament television contracts NFL: Revenue Sharing Media Revenue/ 32, away gate receipts pooled/ 32 League merchandise profits /32 Other side-payment methods developed to keep members happy? - Allow each sports entity to set their own ticket prices Arkansas student price $1 Notre Dame student price $24 Patriots average price $75 Bills $31 - Sponsorships, luxury boxes, other sources of revenue are not shared. 4. Limiting Supply NCAA: sets schedule, official start dates and ending tournaments NFL: sets number of games, official start dates and playoffs. 5. Monitoring Cheating NCAA self regulates NFL: teams must spend on minimum, violators are fined or loss draft picks How can the NCAA and the NFL measure their success? On the field parity NCAA: in basketball over the past 22 years: 17 different winners in basketball, 38 teams to the final four NFL: Since 1993 16 differ