Question

In: Economics

8) Discuss the importance of rival leagues for player compensation, player mobility, and the reserve clause....

8) Discuss the importance of rival leagues for player compensation, player mobility, and the reserve clause. Be sure to also address the response of the existing league and the ultimate outcome.

Solutions

Expert Solution

Rival leagues always help in multiple avenues for players, higher footfalls, rising competitive market, bottomed out rates, higher flexibility which benefits players and viewers simultaneously  

Player compensation gives the ultimate performance and motivation to succeed and is fair means of getting quality services.

Player mobility is arrived to keep competition from being one sided, allow flexibility and make each teams look worthy, to give fair chance to all teams without discrimination as its players who make up for teams success.

The reserve clause was intended to decrease player salary and to avoid undue and unnecessary rise in compensation, ro prolong contracts of players who were dominant in leaugue, to prevent mobility andavoid losing competitive advantage.

Existing leaugues like NFl has ibserved these paramters and have incorporated all of them in contracts which have made leaugue by far most interesting , fair and competitive snd has given highest footfalls and best in class player compensation..


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