Lecture from my sport law class

1. Governance Issues in Professional Sport
Chapter 4

2. Hardest topic for most Sport Management students?
Anti-trust

3. Sherman Antitrust Act
Section 1
Prohibits joint action between
two or more parties that
unreasonably restrains trade
in a relevant market

4. Sherman Antitrust Act
Section 2
Prohibits predatory or exclusionary conduct that
enables an organization to acquire or maintain
monopoly power in a relevant market

5. Focus of antitrust law--maintaining economic
competitiveness

6. Sport teams are exempt from technicalities
of anti-trust
There is an interdependence of teams

7. Sport leagues protected from antitrust laws because of
sport governance structures

8. Three bureaucratic layers:
The commissioner
League board of governors
or owner’s committee
Centralized league office

9. Also...

10. Power of the Commissioner
Authority to impose disciplinary measures on owners
Approves player contracts
Create rules
Offer dispute resolution
Act “in the best interests of the game”

11. Commissioner Limitations
Owners have the authority to fire
Must adhere to the league’s constitutions and bylaws

12. Pro Sports League Structure

13. League office conducts
centralized league operations

14. League board of directors or owner’s
oversee policy making on issues

15. Individual teams are responsible for team
operations, including: facilities,
marketing tickets, etc.

16. League set rules and
eligibility standards for
acceptable owners

17. Owners outline the restrictions on
franchise relocation

18. Owners also...
1. Determine how to restrict the supply of players

19. 2. Restrict television exposure

20. 3. Restrict playing sites

21. Individual Sports Governance

22. Not employees
Not exempt from antitrust laws
Often considered independent contractors

23. Event promotors or
producers are in
charge of individual
events

24. Players associations may officially sanction
some events & not others

25. What is a players association?

26. Players associations shape policies &
establish disciplinary procedures

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