Question

What is the difference between “single-entity” ventures and joint ventures of leagues? List the three types of single-entity ventures that leagues must undergo as well as the three categories of joint ventures that leagues undertake.

Answer 1

Introduction to Single entity and Joint Venture:

Single entity is a detached body or a division where all the operations of an entity are collected to acquire the financial status of the company. However, financial information which is reported from the operating unit is important particularly for decision making.

Joint venture: when two or more entity sign and agree to contribute their resources to accomplish a specific task or a project.

The main difference between single entity venture and joint venture league is:

In single entity venture they are the only responsible unit for all the operations of the league, whereas in joint venture league all the parties who are joined for the league have equal responsibilities in the operational units.

The below are the listed three types of single-entity a venture that leagues must undergo is:

• Wholly owned subsidiaries
• Limited liability Company
• Individual team ownership

The three categories of joint ventures that leagues undertake is

• Incorporated joint venture
• Temporary partnership
• Economic Join Venture

Although most of the sports leagues are facing” Single entity” issues the above listed types of operations in an economic perspective would clarify the issues faced. The gradual transformation of single entity ventures to joint ventures (incorporated joint ventures) would ensure the smooth operations of such leagues without any legal complications or financial deficits.