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Nfl Hbs Case Study

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NFL Case Study
1. Discuss the factors that have resulted in the NFL becoming “America’s Game” and the most popular sport in the country?
The fundamental reason for NFL becoming “America’s Game” and the most popular sport in the country is because the NFL was able to market the sport as an entertainment business.
Leveraging television and the fact that American football was only played in America, the
NFL was able to create a “holiday” feel that was unique and that American’s took pride in, as a result paid more attention to the sport. Another contributing factor was to control the quality of the product. Making sure that each team had the resources to perform professionally and one team could not gain absolute advantage was crucial to maintaining a competitive parity. To do this the NFL implemented controlling cost and revenue sharing, in which the lowest earning team could compete with the highest earning team.
2. Explain the dynamics behind the competitive balance in the NFL versus other U.S. based properties as well as other leagues globally.
The NFL has two methods of maintaining parity. Amongst the teams, the NFL uses revenue sharing in three ways: “1. National Revenue Sharing: All national revenue was pooled and split evenly between the teams at the end of the year. 2: Gate Revenue Sharing: Visiting team share was pooled and split evenly. Supplemental revenue sharing: focusing on teams’ local income, teams with higher local revenues transferred a significant part of those revenues to teams with lower local revenues.” In terms of players, The NFL uses the collective bargaining agreement to implement salary cap and salary floors as a to ensure that teams cannot spend as much as they want to buy all the star players.
The competitive dynamics in NFL are very similar to other domestic sports such as the NBA, both implement revenue sharing and...

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