Since I was curious to know more about sports management, I wondered, what leads a sports league to success or failure? They say there’s always something to learn from your next-door neighbor, and living in Mexico I came to the conclusion that the focus of interest is in the United States, because their sports leagues are part of the oldest traces of organized sports, and without a doubt, are also examples of success that are worthy of imitation and improvement.
Based on the major sports leagues in that country and other international sports circuits, we can clearly identify the four structures of the most successful sports leagues and their peculiarities.
The NBA (National Basketball Association), as well as the MLB (Major League Baseball) and the NFL (National Football Association) are clear examples of a closed sports structure. One of the main characteristics of this type of organization is that they’re comprised of “sub- leagues” within the major league itself without allowing teams to ascend or descend. In a closed league each team is financially and athletically independent, however, teams cooperate and work together as one company, sharing the revenue from television rights and licenses, among others.
One example is the Major League Baseball circuit with 30 teams spread throughout the U.S. and Canada , their franchises are divided into two domestic leagues, the National League and American League, which in turn are subdivided into East, Central and West divisions, thanks to its geographical location.
Another feature is the existence of a “commission” that presents a social behavior regulator for redistribution of profits among league teams, looking to help those teams that face economic hardships.
The English Premier League is another example worthy of consideration that represents an open sports structure. This type of league operates under the “rise and fall” principle. Each team functions independently and their level of competence, as well as their economic benefits are proportionally related based on their athletic performance.
A model that is considered capitalist and highly successful is the Super League. In this type of structure, the top teams in several leagues face another independent league, as in the case of the UEFA Champions League. Leagues like this are a significant source of extra revenue for the teams involved, due to the high level of performance and expectation generated around it. This favors rich teams in accumulating more wealth, hence the nature of its capitalist structure.
The last of the four structures with proven success in the sports industry, is the limited individual society. Major League Soccerin the United States operates under this predicament which states that instead of working under a combination of several independent teams, MLS is a unique individual entity where the teams belong and are controlled by the league’s shareholders.This model is consistent with the closed structure to prevent the entry, rise and fall of teams.
Many variants may arise if we take the base of any of the four structures mentioned above. When setting forth a new sports initiative it’s important to think about the most suitable structure or substructure of the sport in question, its audience, geographical area, history and economic background. Selecting an appropriate sports structure is an essential part of getting on the path to sports management success.
Ariadna Ibarra is a sportscaster & journalist for Telemax and a former alumnus of the Master in Sports Management at the Johan Cruyff Institute.