+ 1-888-787-5890  
   + 1-213-471-2244  
 
 
 
 

Essay/Term paper: The economics of the n h l

Essay, term paper, research paper:  Business

Free essays available online are good but they will not follow the guidelines of your particular writing assignment. If you need a custom term paper on Business: The Economics Of The N H L , you can hire a professional writer here to write you a high quality authentic essay. While free essays can be traced by Turnitin (plagiarism detection program), our custom written essays will pass any plagiarism test. Our writing service will save you time and grade.


J.C.H. Jones's article "The Economics of the National Hockey League" (1969) purpose is to
explain through simple micro economics that the prime motive of professional hockey team owners
is profit maximization. The owners argue that their main interest is "for the love of the game," not the
financial benefits of owning a professional sports franchise and to avoid government regulations such
as the Combines Act (note 1).

An article written in 1982 by J.A. Schofield entitled "The Development of First Class Cricket in
England," states the behavior of sport cartels. Three hypothesises are used to explain the behavior
described by Schofield, number two being developed by J.C.H. Jones (1969). (1) The profit
maximization hypothesis. (2)The joint profit maximization hypothesis that the entire cartel (league)
strives for. This hypothesis does not incorporate non profit objectives that influence group behavior.
(3) The utility maximization model that allow for many possibilities usually compromising arguments
such as the success of the team at a given year and paid attendance for the team's venue.

By explaining the frame work of a professional sports league Jones introduces us to factors that
make an organized league function, which seems quite familiar to any other monopolistic markets.
Since no team can create any revenue by themselves they must form a coalition with another club to
produce a profit generating output, namely a hockey game. Other clubs enter this coalition thus
creating a formal league which we call the National Hockey League. Jones then states how revenue
is generated in the N.H.L and how it is affected by certain factors.

A theoretical model of the N.H.L is created by Jones with all things being equal, creating an
equilibrium amongst all clubs. The model is then adjusted to real life variables that turns his
theoretical model into what we know as the N.H.L. Jone's variables includes the incentive for teams
to win (this being the Stanely Cup), different quality of players, the amateur draft (a draft at the end
of the season which amateur players a selected, last place team gets first pick and so forth), and
player redistribution(trades).

By applying microtheory Jones clearly presents his argument which I was able to













understand with my current knowledge of microeconomics. Jones examines the revenue side of an
individual team using the usual variables tastes, prices, incomes, quality and substitutes. On

the supply side Jones stresses that the major element is the human inputs namely the hockey

players. The data that Jones used was team statistics such as their final rank at the end of the season
and the paid attendance as a percentage of maximum seating capacity. By using this data Jones is
able to establish trends that arise from season to season, thus helping him establish his argument on
profit maximization.

Jones article is meaningful at the moment because of the current labor disputes amongst the players
and the owners. "The Economics of the National Hockey League" states what the N.H.L. should be
and also indicates what is wrong with its current status. The current issues pressing the N.H.L. such
as a salary cap, revenue distribution, and league expansion are all measures that the team owners
are striving for. By installing these measures into the N.H.L. the equilibrium achieved in Jones's
theoretical model would be easier to achieve thus maximizing the owner's profits. One variable that
Jones could not foresee in 1969 is the outrageous salaries being paid to the players and the
proposed salary cap from the owners. I believe that Jones's argument that owners motives are
purely geared towards profit maximizing would be stronger if the idea of a salary cap was present
then.

Jones concludes that the National Hockey League is profit driven and clearly posses monopolistic
qualities. Upon proving this through simple micro economics the N.H.L. can fall under certain
government regulations such as The Combines Act. Since this article was written in 1969 many
changes have been made to the governing bodies that control the National Hockey League however
its functions can still be explained through micro economics.









REFERENCES


1.The Combines Act. R.S., C314 s.1, 1966

2. J.C.H. Jones, "The Economics of the National Hockey League", Canadian Journal of Economics,
vol 2 (February 1969), pp. 1-20

3. J.A. Schofield, "The Development of First-Class Cricket in England: An Economic Analysis",
The Journal of Industrial Economics, vol. 30, no.4 (June 1982), pp.337-360






























 

Other sample model essays:

U.S. Wage Trends The microeconomic picture of the U.S. has changed immensely since 1973, and the trends are proving to be consistently downward for the nation"s high school graduates and high ...
The Effects of Stress, Alcohol Outcome Expectancies, Gender, Coping Styles, and Family Alcoholism on Alcohol Consumption Researc...
The Fed and Interest Rates Dave Pettit of The Wall Street Journal writes a daily column that appears inside the first page of the journal's Money & Investment section. If the headline...
Advanced Composition Term Paper: Will the Global Economy help or hurt the next generation of Americans? Will the global economy help or hurt the next generation of Americans? This is the...
The Great Depression All these changes affects the society in different ways .The Great Depression caused many people to destruct businesses and led the government to regulate the businesses...
Greek Economy Agriculture The Greek economy depends a lot on agriculture. One quarter of the Greek workforce is engaged in farming, and ...
GENERAL PRINCIPLES OF MANAGEMENT - 31.2GM1 THE IMPORTANCE OF PLANNING FOR A STEREO MANUFACTURER BY: ØYSTEIN AULIN Reg,nr. 943778923 HERIOTT-...
What is a modified market economy? What factors have been responsible for the emergence of this kind of economic system? How do governments influence economic decision making in such systems? Us...
The National Debt For the past centuries, the american people dug themselves into a big hole which is the National Debt. In this paper I will discuss the history of the national debt, effects ...
Business / The New Deal
"How well did the New Deal combat the Depression?" I think that the answer to this question is that it did very well and I would give it a grade of an A. When Roosevelt took office, in ...
it is always perfect
Frederick, Maryland, United States
The experience with Dream Essay is stress free. Service is excellent and forms various forms of communication all help with customer service. Dream Essay is customer oriented. Writer 17663 is absolutely excellent. This writer provides the highest quality of work possible.
Browns Mills, New Jersey, United States
Dream Essay is excellent. Writer 7135 is excellent. Met all requirements of the paper produce superb work. Thank you for your time and an excellent paper.
Browns Mills, New Jersey, United States
Writer 37301 is excellent produces assignments ahead of deadline which provides enough time for review and revisions, and the assignments are done according to rubrics. Excellent
Browns Mills, New Jersey, United States
Only competent & proven writers
Original writing — no plagiarism
Our papers are never resold or reused, period
Satisfaction guarantee — free unlimited revisions
Client-friendly money back guarantee
Total confidentiality & privacy
Guaranteed deadlines
Live Chat & 24/7 customer support
All academic and professional subjects
All difficulty levels
12pt Times New Roman font, double spaced, 1 inch margins
The fastest turnaround in the industry
Fully documented research — free bibliography guaranteed
Fax (additional info): 866-332-0244
Fax (additional info): 866-308-7123
Live Chat Support
Need order related assistance?—Click here to submit a inquiry
© Dreamessays.com. All Rights Reserved.
Dreamessays.com is the property of MEDIATECH LTD