Question 1

In which league was Pete Rozelle commissioner and developer of the idea of "league think"?

Accepted Answer

Pete Rozelle was the commissioner and developer of the idea of "league think" in the NFL (National Football League).

Question 2

Which league once operated under a single-entity model?

Accepted Answer

MLS, or Major League Soccer, once operated under a single-entity model. This means that the league, as a whole, owns all of the teams and the players are technically employed by the league, not individual teams. This model was implemented when the league first started in 1996 in order to try and prevent financial struggles like many other professional sports leagues had experienced. The single-entity model was eventually phased out and the league now operates under a more traditional model where individual teams own and operate their own clubs.

Question 3

In the late 1950s, which league failed to recognize that it should expand to emerging markets, which allowed an upstart league to establish a presence in those markets?

Accepted Answer

The NFL failed to recognize the potential of expanding to emerging markets, which allowed the American Football League (AFL) to establish a presence in those markets.

Question 4

Leagues have created rules and policies to improve competitive balance. What do these rules and policies typically relate to?

Accepted Answer

Leagues have created rules and policies to improve competitive balance, and these policies typically relate to all three options: player drafts, free agency, and player salary. These are all key factors in ensuring that the best players are distributed fairly among teams, allowing for a more level playing field and more exciting competition.

Question 5

Which league's salary slotting system encouraged the Houston team to make their on-field product particularly terrible from 2009-2013?

Accepted Answer

The MLB's salary slotting system, known as the draft pick compensation system, rewards teams with higher draft picks for finishing with worse records. This encouraged the Houston team to intentionally make their on-field product terrible from 2009-2013 in order to secure higher draft picks, which they used to select talented players who helped them win the World Series in 2017.

Question 6

Which of the following is the responsibility of the commissioner's office under the franchisee/franchisor league structure?

Accepted Answer

The commissioner's office is responsible for negotiating national television contracts, establishing relationships with vendors for league-wide licensed merchandise sales, hiring and supervising game officials, and negotiating a collective bargaining agreement with the players' union.

Question 7

This league began in a single-entity structure and switched to a franchisee/franchisor model?

Accepted Answer

Both the WNBA and MLS began with a single-entity structure. The WNBA, founded in 1996, initially operated with all teams owned by the league, before transitioning to a franchise model where individual teams are owned by separate entities. Similarly, MLS was established in 1993 with a single-entity structure where the league owned all the teams and player contracts, and it has gradually moved towards a more traditional franchise model over time, allowing for individual ownership of clubs while maintaining certain centralized controls.

Question 8

In which league have franchises typically been owned by corporations?

Accepted Answer

Franchises in the Nippon Professional Baseball league have typically been owned by corporations, with individual ownership being less common. This is in contrast to Major League Baseball in the United States, where most teams are owned by individual or small group owners. Corporations also own teams in the Japanese Professional Baseball League, but to a lesser extent than in the Nippon Professional Baseball league.

Question 9

Which iconic franchise nearly experienced financial disaster in 2011?

Accepted Answer

The Los Angeles Dodgers nearly experienced financial disaster in 2011 due to a combination of financial mismanagement and a high payroll. The team was ultimately sold for a record-breaking $2 billion in 2012.

Question 10

Through 2015, the highest expansion fee paid by a new team entering a North American professional league was in which league?

Accepted Answer

The NFL had the highest expansion fee through 2015, with the Houston Texans paying $700 million to join the league in 2002.

Question 11

Each of the professional sport leagues has established rules regarding who may become an owner and join their "club."

Accepted Answer

Each professional sport league, such as the NBA, NFL, MLB, and NHL, has established criteria and regulations for ownership eligibility.

Question 12

The NHL has the most strict ownership requirements of all the North American professional sport leagues, including a steep cash down-payment requirement.

Accepted Answer

The NFL has stricter ownership requirements, including a rule that the principal owner must hold at least a 30% stake and limits on corporate and public ownership, which are more stringent than the NHL's ownership requirements.

Question 13

Most of the recent bankruptcies in the "Big 4" professional sport leagues have involved baseball franchises.

Accepted Answer

Most of the recent bankruptcies in the "Big 4" professional sport leagues (NFL, NBA, MLB, NHL) have not predominantly involved baseball franchises. Bankruptcies in these leagues are relatively rare and tend to involve a variety of factors and teams from different sports.

Question 14

The NBA recently used a pooled-debt instrument to assist financially struggling franchises.

Accepted Answer

The NBA did indeed use a pooled-debt instrument, called the "Credit Facility Program," to provide financial assistance to struggling franchises during the COVID-19 pandemic. This allowed multiple teams to borrow money together at a lower interest rate than if they borrowed individually.

Question 15

The four major North American sport leagues all share revenues from licensed merchandise sales equally among their teams.

Accepted Answer

The NFL, NBA, MLB, and NHL all have revenue sharing agreements in place that include an equal split of the revenue generated from licensed merchandise sales.

Question 16

NFL teams share the highest percentage of gate receipts with visiting teams.

Accepted Answer

According to the NFL's current revenue sharing system, teams share the highest percentage of gate receipts with visiting teams. This is done to ensure that all teams in the league have an equal opportunity to generate revenue, regardless of the size or popularity of their market.

Question 17

The New York Islanders of the NHL violated league rules regarding league control of official league websites.

Accepted Answer

The New York Islanders did not violate league rules regarding league control of official league websites. The NHL has specific guidelines for team websites, but there's no public record of the Islanders violating these rules.

Question 18

In addition to "traditional" luxury suites and club seats, some facilities offer luxury suites that do not have a direct view of the field of play.

Accepted Answer

It is true that some facilities offer luxury suites that do not have a direct view of the field of play. These suites may offer alternate views, such as a view of the skyline or other parts of the facility. They often come with luxury amenities and services, but at a lower cost compared to suites with direct views of the game.

Question 19

A personal seat license is typically valid for the life of the facility.

Accepted Answer

The answer of A personal seat license is typically valid...

Question 20

Though securitization is popular, facilities cannot be financed through securitization.

Accepted Answer

Facilities can actually be financed through securitization. Securitization is a process of pooling assets and converting them into securities which can be sold to investors. Facilities such as mortgages, car loans, and credit card receivables are commonly securitized.

Quiz 15: Professional Sport