Writing an essay on the economics of sports

[The Czech Republic 0]

This whole deal should constitute segments on the economic successes, failures, and changes for the Big Four. I want to concentrate on the NHL's franchise instability and subsequent market failure, the NBA's marketing of stars above teams, the effects of free agency on baseball, and the pros and cons of a socialist system in the NFL. Here's an excerpt on the hockey portion, help me out where you can.

 

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Until 1991, the National Hockey League was economically successful by operating on a smaller scale than the other major leagues. By concentrating its focus into the Midwest and Northeast U.S., along with Canada, the NHL was the most successful it had ever been. When Wayne Gretzky was traded from the Oilers to the Kings in 1988, hockey became a hot fad in Los Angeles, a traditionally struggling hockey market since its inception in 1967. With interest picking up across the rest of the southern U.S. with the newfound success and subsequent popularity of the L.A. Kings, the NHL tried to capitalize on a short-term fad in the long-term by expanding the league into the South at the expense of the league.

The National Hockey League, in its effort to market itself to the general population across America, has not only failed at that, but also alienated its existing and most dedicated fans of all. With at one point eight, but now just six franchises located in Canada, the national economy north of the 49th is more influential to the NHL than any other league. From 1990 to 2000, to league expanded from 21 teams to 30. With additions to the Bay Area, Tampa Bay, Dallas, Miami, Anaheim, Denver, Phoenix, Raleigh-Durham, Nashville, Atlanta, and Columbus, one would presume that popularity of hockey would skyrocket in America.

 

The Winnipeg Jets are the textbook example of this market failure in the NHL. Located in a metropolitan area of approximately 650,000, the Jets did not have the dispensable income to contend with big-city teams like the Rangers and Kings. Notwithstanding, the Jets had one of the most dedicated fan bases in the league, were able to build strong teams over the years whose only flaws were drawing powerhouse teams like Edmonton and Calgary in the early rounds of the postseason. The greater flaw of the franchise, however, was a lack of luxury boxes in the antiquated Winnipeg Arena, and a lack of major businesses in Winnipeg to rent them. No matter how many fans were purchasing seats, the “big money” needed to pay the inflated contracts was not there. When plans were announced to move the franchise to Minneapolis, the team’s fans came together with enough money to purchase the team from franchise owner Barry Shenkarow. However, NHL commissioner Gary Bettman requested that a new arena with luxury boxes be built to keep the team in town. The consortium could not collect the money, and the team was sold to interests in Phoenix, Arizona. The franchise has had less monetary success in a major American city with more sheer numbers than Winnipeg in population, dispensable income, and seating. But in the area of consumer preferences, the demand for hockey in central Canada was unsurprisingly higher than it is in Arizona.

[EVIL~! alkeiper 0]

You could really draw a comparison from a strictly economic standpoint between the advent of free agency of baseball, and the extinction of slavery in the South. Both events caused their owners to face a harsh economic reality of paying market value for labor.

[kkktookmybabyaway 0]

If you want I'll provide a link to you on a paper I wrote in college regarding the NFL salary cap (Got an A on it). Just PM me if interested...