Allows (NBA) team to re-sign one of its own free agent players without regard to the salary cap. Exceptions from the Salary Cap, free agent is re-signed by that team at an amount up to maximum salary. Bird Rule, applys to players who have completed 3 seasons in NBA without being waived or having changed teams. Contracts cannot exceed 6 years. Originated from Boston Celtics who resigned their player Larry Bird.
-Number of different teams that have won title
-Number of different team who reached an advanced stage (playoffs/post-season)
-Number of teams that have been consistently bad
-Correlation between team’s records over two-year period
-How often teams finish with winning records
-How closely grouped teams are around the .500 mark in a season
-How varied is the group of competing teams for a certain title over a period of time
Sports league must have competitive balance and parity across its teams, without balance there will not be the necessary uncertainty of outcome in individual games and season to maintain fan interes.
It isn’t equality of team strength, but equal opportunity. A league seeking to maximize its revenue will not want each of its teams to have an equal chance to win the championships, rather the teams with larger ‘markets’
Because team membership is not fixed, team have no monopoly control over there territories. A new team can always be established. Also creates fan confidence that the league is producing the highest possible quality of product.
Agreement or rule that limits the amount of money a team can spend on its players’ salaries.
-For every dollar a team spends above the tax threshold, they must also pay some fraction to the league. This system is used to discourage teams from greatly exceeding the tax threshold, with the goal of ensuring parity between large and small market teams.
-It is paid by high spending teams — those with a team salary exceeding a predetermined tax level.
A schedule in NFL especially which is unbalanced so the that teams play other teams closer to their level. Better teams/better teams while mediocre teams play other mediocre teams, this increases uncertainty of outcome in the game
It is designed to help redistribute money from high-revenue teams (generally in big markets) to needier teams (generally in small markets.
NFL- All broadcasting and licensing revenues are shared equally among all teams.
Anti-trust exemption for MLB
MLB has an exemption from a 1922 court case which has been upheld since then and was first challenged in 1972.
Section Two Violation: if combination results n monopolies
Commerce Clause: Government has the right to regulate international trade and commerce among/between states (inter-state commerce)
“Non-statutory” exemption, more applicable exemption to sports, is judicially-derived expansion of the labor exemption that protects union activity from antitrust liability. This exemption is the crux of nearly all antitrust actions in pro sports (not including baseball). It is based on the policy that favors collective bargaining and gives it preference over antitrust laws. Any union-management agreement that was a product of good faith negotiation will receive protection from antitrust laws, meaning that union/provisions of the agreement cannot be attacked as collusive or anti-competitive. Example: Salary cap is agreed by both sides, it could technically be a violation of antitrust, but since cap was part of CBA negotiated in good faith and agreed to by both sides, the salary cap cannot be violated.
Player talent in the league will move to the team where he is most valued, invariant of team revenues. End up with the team where they have the highest use, changes revenue distribution amongst teams but not competitive balance.
All revenue generated by a league/team, NFL has something known as All Revenue (AR) now which includes basically all revenue streams.
Japanese player is “posted” or made available by his team/league, MLB place bids to the team for this player. Highest bid wins the negotiation rights to that player for 30 days where the player’s contract is negotiated. If a contract is established MLB team has to pay both the fee and the player’s contract, if it falls through no fees are paid and the Japanese (or S. Korean now too) player is able to return to his team.
Controls the amount of revenue that goes directly to the player’s, it is used to ensure that player’s revenues/salaries and benefits do not exceed the guaranteed share of the BRI. To do this 10% of the player’s benefits/salaries are withheld and set into an escrow account. End of the season the player’s revenue/benefits are compared to the BRI and if the team went over the money goes to the owner, and the rest returns to the player. NBA and NHL
-Realignment of teams into 3 divisions per league, and intro of playoff wild card teams
-2 new franchises
-Home field advantage in World Series granted to the winner of All Star Game in same season
-World Baseball Classic