OctoStudy Sport
Print Сite this

Professional Sports Teams: the Ownership Model

Abstract

The purpose this essay is to provide an overview of the ownership models and player relationships that exist in sports franchises and professional teams. The various ownership models that exist today will be discussed and identified based on their relevance to the sports team. The aspect of player relationships will also be discussed in the essay by establishing the types of relationships that exist among a team’s players. The essay will also determine whether the type of ownership model affects the player relationships and whether it presents any challenges in the management of the sporting franchise.

Overview of the Ownership Model

Ownership models are the structures that exist within professional sports teams and associations and they are used to regulate and manage the business activities of sports teams. One commonly used ownership model is the single or private investor’s model of sports ownership where a team is owned by a single investor or private owner who funds the business activities of the team. Single investors are usually individuals that have a vested interest in sports franchises and they have the financial capability to invest in professional teams. The multiple owners syndicate ownership model on the other hand involves multiple companies pooling their financial resources to invest in a sports league or association. This type of ownership model is mostly based on profit maximization while the single or private investor’s model is mostly based on the winning potential of the team (Foster et al, 2006).

Companies such as Cablevision, Rogers Communications and Tribune have a syndicate ownership of various sports franchises and professional teams within the United States. With regards to the private investor’s model, a single person manages the operating costs of the whole team and the team’s franchise price by paying the player’s salaries and wages, funding the acquisition of new players, their compensation benefits, paying for sports arenas and funding any sporting event that the team participates in. Examples of individuals who own sport franchises in the United States include Micky Arison who owns the Miami Heat, Paul Allen who owns the Seattle Seahawks, Philip Anschutz who owns the Los Angeles Kings and Mark Cuban who owns the Dallas Mavericks (Rosner & Shropshire, 2004)

Player Relationships in Sporting Teams and Associations

The type of ownership model that exists within a professional team will determine the type of player relationships that exist within that team. Many owners of sport franchises place a lot of emphasis on player relationships as players are the most easily identifiable individuals in a team. Owning a multi-billion dollar sporting team such as the Miami Heats involves getting to know each of the players individually to determine the type of player relationships that exist within the team. Because the purchase of a sports team by either an individual or a corporation is a huge investment, it is important for the owners to develop a healthy interest in the team. Individuals or corporations should find out about the personal history of their players as well as what combination of team skills enables the team to function as a winning machine (Zimmerman, 2008).

During the purchase of the team, it becomes important for the new owners to build a player profile that will enable them determine the type of team cohesion and team work that exists. This will provide important information to the owner on the type of coach and team manager that will be needed to guide the activities of the players. Player relationships in ownership models therefore become important in the sporting operations of franchises and professional associations (Zimmerman, 2008). To explain the above, the owner of the Atlanta Falcons, Arthur Blank believes in player relationships and cohesion within the team as he views them to be the most important properties in the sports management of professional teams (Okmin, 2011).

Future challenges

The future challenge that might affect a professional team that is privately owned is the acquisition of high-caliber players who have the ability to increase the team’s winning potential. Teams that are managed under such a model might experience limited resources which make it difficult to pay such players for their services. The compensation benefits of players that are managed by this model might also be low when compared to those managed by multiple investors as the single investor fund the wages and salaries of the player from their own pocket. For the multiple investors syndicate model, the future challenges that might affect teams managed by this type of ownership model is the focus on profit maximization, where the teams efforts are directed towards making a profit. This might affect the overall performance of the team that has its goals and objectives designed to win leagues, tournaments and sporting events (Foster et al, 2006).

References

Foster, G., & Greyser, S.A., & Walsh, B., (2006). The business of sports: text and cases on strategy and management. Mason, Ohio: Thomson Southwestern

Okmin, L., (2011). Relationships matter most to Blank. Web.

Rosner, S., & Shropshire, K.L., (2004). The business of sports. Massachusetts: Jones and Bartlett Publishers

Zimmerman, C., (2008). Buying sports franchises: investing for the love of the game. Web.

Cite this paper

Select style

Reference

OctoStudy. (2022, March 23). Professional Sports Teams: the Ownership Model. Retrieved from https://octostudy.com/professional-sports-teams-the-ownership-model/

Reference

OctoStudy. (2022, March 23). Professional Sports Teams: the Ownership Model. https://octostudy.com/professional-sports-teams-the-ownership-model/

Work Cited

"Professional Sports Teams: the Ownership Model." OctoStudy, 23 Mar. 2022, octostudy.com/professional-sports-teams-the-ownership-model/.

1. OctoStudy. "Professional Sports Teams: the Ownership Model." March 23, 2022. https://octostudy.com/professional-sports-teams-the-ownership-model/.


Bibliography


OctoStudy. "Professional Sports Teams: the Ownership Model." March 23, 2022. https://octostudy.com/professional-sports-teams-the-ownership-model/.

References

OctoStudy. 2022. "Professional Sports Teams: the Ownership Model." March 23, 2022. https://octostudy.com/professional-sports-teams-the-ownership-model/.

References

OctoStudy. (2022) 'Professional Sports Teams: the Ownership Model'. 23 March.

This paper was written and submitted to our database by a student to assist your with your own studies. You are free to use it to write your own assignment, however you must reference it properly.

If you are the original creator of this paper and no longer wish to have it published on OctoStudy, request the removal.