Professional Sports Monopolies

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Maynard Posted: Tue, Sep 4 2012 4:13 PM

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As I understand it, monopolies can only come about in a free market if they provide an absolutely competitive product. In other words, any competition would not result in a profit. Therefore, this monopoly is of a benefit to consumers. Is this the type of monopoly professional sports leagues have? Or do they receive government subsidies or harmful-only-to-competitors regulations? Any reading or insight on this topic would be much appreciated.

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grant.w.underwood replied on Tue, Sep 4 2012 4:21 PM

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well every professional sport has competition.  So they arent monopolies at all.  

who sport are you thinking has a monopoly?

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Aristophanes replied on Tue, Sep 4 2012 4:37 PM

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Actually, grant, the MLB is a monopoly.  Or maybe trust is a better word. They are exempt from anti-trust laws.  The MLB was included as an exemption when they passed the first anti-trust laws.

Sometimes I forget about the XFL.

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John James replied on Tue, Sep 4 2012 4:41 PM

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Relevant threads:

Sport governing bodies as "natural monopolies"?

ESPN Begining Attacks on UFC, Charging Monopoly

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grant.w.underwood replied on Wed, Sep 5 2012 9:32 PM

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MLB has professional leagues outside of the MLB.

nfl also has arena football which is actually pretty big.

 its hard not to say NCAA sports arent professional with the cost of schools that they get for free, NCAA allowed per diem, loaner cars, loaner house, jobs that they get paid for that they dont have to goto, hell every Miami hurricane that goes to the NFL takes a paycut.  All this stuff is legal.

also women pro teams

NFL also competes with MLB.  We live in a monopolistic competitive economy so i think people just look at it incorrectly.  Just because a professional sports league have specific products doesnt mean they have a monopoly or even a natural monopoly. Its like saying Peter Jackson has a monopoly or a natural monopoly of lord of the rings movies.  While its true, it doesnt mean ppl cant create any other movie they want.

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Willy Truth replied on Thu, Sep 6 2012 2:28 PM

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Well, the largest pro-sports franchises seem to often be propped up by the state or local governments. Stadiums are seemingly always built by cities to attract/accomodate money-raking sports teams. 

I've also wondered about this; the NFL, for example, is notorious for excluding willing cities from acquiring teams. The NBA actually owns the New Orleans Hornets and does the same. The NHL, on the other hand, has actually had some players defect overseas. 

Of course, they are private leagues and can do whatever they want. But it is certainly interesting that they all seem to be the first and last word on all sports. Honestly, they have simply accrued the prestige of such powerful name recognition (thank the media) that they really do have a monopoly on the greatest athletes in America.

Because of this, there could never be a true competitor to the NFL--at least not in the foreseeable future (until football begins to go extict because of the injuries and resulting lawsuits). 

With something like European soccer (meh), there is a lot more parity between competing leagues. 

And the NCAA, well, that's a whole 'nother can of worms (pay the players!).