Capitalism for the Cooperative: The NCAA and NFL Model of Parity and Profit. Is equality among teams better for league organizers?. Do NFL Owners wants parity? Why? Do NCAA members want parity? Why?. NFL objectives Does this sound like capitalism?.
Goal: level the playing field so that all members can compete
NFL teams and NCAA member institutions need competitors to maximize profit
Vrooman (1995) payroll cap is a form of “cost sharing collusion.”
Players receive a max of 64.25% of Defined Gross Revenue in 2004 range was $75 million to $63 million
In 2003 they distributed $264 m
- Top 6 (of 31) Conferences received 50%
- BCS is guaranteed revenue for major conferences
- Negotiates tournament television contracts
Media Revenue/ 32, away gate receipts pooled/ 32
League merchandise profits /32
- Allow each sports entity to set their own ticket prices
- Sponsorships, luxury boxes, other sources of revenue are not shared.
5. Monitoring Cheating
On the field parity
NFL: Since 1993
Television contracts measures fan approval.
NCAA: up 62 percent in 5 years
NFL: a new multi-billion contract with NBC, Fox, CBS, ESPN, Direct TV worth ????
The End!! equality?