Question

Using examples from the USFL and ABA, explain what rival leagues must do to succeed. Also state whether that league was successful in meeting their goals.

Answer 1

USFL is the national football league consisting of 32 teams which are divided equally between National Football Conference and American Football Conference.

Parity is the state or condition of being equal. Parity in sports is that the best teams in a league are not substantially better than the worst teams.

However parity leads to less predictable outcomes and high attendance which leads to higher revenues. Each team thinks that it can win because of the parity. There is also a hard cap wherein players salary does not exceed a certain point.

However the two downsides are players can take in less money to benefit their team and it is less likely that players remain with a team for their entire career. The main cause of this is that there is a cap on the maximum amount a player can be paid.

Solution can be that players are instilled a sense of loyalty to a certain team and paid accordingly so that they don't switch teams that often, and are promised a deserving amount to stay in the team according to their payoff to the team so that they are not paid less.