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The Challenges Facing Professional Sports

In: Business and Management

Submitted By onlyjin21
Words 23584
Pages 95
Chapter 3
THE CHALLENGES FACING PROFESSIONAL SPORTS
The Financial Status of Professional Sports
Growth of Professional Sports Major Leagues Minor Leagues State of Women’s Professional Sports Leagues Other Successful Sports Properties

The Economic Reality of Professional Sports

Team Financial Statements
Controlling Player Costs National Football League National Basketball Association Major League Baseball National Hockey League

European Soccer’s Path to Financial Health: UEFA’s Financial Fair Play

Creative Accounting Roster Depreciation Allowance

Franchise Appreciation
Summary

The Financial Status of Professional Sports
Growth of Professional Sports
Major Leagues
The 1990s and early 2000s was a period of substantial growth for professional sports at all levels. The number of teams in the Big 4 major leagues grew from 103 franchises in 1989 to 122 franchises by 2001. During that time, the National Hockey League (NHL) added eight expansion teams, Major League Baseball (MLB) added four, the National Football League (NFL) added three, and the National Basketball Association (NBA) added five teams. In addition, several new leagues were launched in the 1990s with aspirations of becoming prominent national properties, most notably Major League Soccer (MLS) and the Women's National Basketball Association (WNBA).
By 2001, each of the Big 4 leagues had reached a saturation point, having established franchises in nearly every market capable of sustaining a major sports property. A few markets remain available for certain leagues. For example, Los Angeles has not had an NFL team since the Rams abandoned LA for a new stadium in St. Louis in 1995. While the NFL would love to have a franchise in the country’s 3rd largest television market, the lack of a modern, “NFL-ready” stadium has prevented a team from filling this attractive

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