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Essay / The Pros and Cons of Violating Antitrust Laws in Sports
Introduction – An antitrust violation occurs when a professional sports league such as the MLB, NFL, NBA, or NHL enters into an agreement to do things such as increase the price of something, reduce production, or maintain production that affects the customer of the product. When a league controls a market, it also controls how the customer will purchase the product and how much it will cost. (Ross 2001)Article Summary – The researcher chose to analyze an area where monopolistic sports leagues harm a group of different groups. They do this by controlling the entry of competitors or exerting specific pressure on a company through anti-competitive rules. This article uses government theories of antitrust liability to show how it affects sports fans and shows how new legislation could change that. Sports leagues have changed their rules to ensure that fans in all areas can enjoy everything sports has to offer. The various leagues have made agreements with each other to ensure that fans get the best and most improved product at all times. (Ross 2001) Researcher Ross goes on to explain how the leagues have structured their specific leagues based on a certain number of teams and that they are not allowed to be teams added to their leagues without a vote of the owners and it must be a majority vote. Because of this, leagues have lower returns, resulting in teams having higher prices for things. This causes communities to pay more for the league to want to grow in their area. The teams that are already in this area are almost forcing the community to give them more money or else they will move with the owner's approval. Due to the scarcity of teams, cities are so afraid of losing a team that they give them what they want...... middle of paper ...... like football and baseball, it t's very difficult for a good player to change teams because the rosters are so large it can't really make a big difference unless that player is a quarterback in football. Problem - The problem in this article was how the draft and contracts affect competitiveness, which then affects antitrust. laws. This researcher also discussed the reserve system which was created in 1887 and is still in use today. Importance of the study - the importance is that it taught me a lot more about the reserve system and what it does even though the system has changed over time. Over the past hundred years, it's still pretty similar. How it helped – It helped me by teaching me more about the reserve system. It also made me think more about how the draft may not be the fairest way for leagues to make their league more competitive..