1. On Sunday, November 24, the Washington Submit reported that a current ballot discovered 59 % of D.C. residents favored transferring the Redskins to a brand new stadium constructed on the location of the RFK Stadium. Nonetheless, solely 39 % of D.C. residents consider town authorities ought to simply give the crew the land on which to construct the brand new stadium and solely 28 % of these polled favored town’s utilizing taxpayer cash to assist finance the brand new stadium. Describe the financial arguments each for and towards town’s offering land and/or funding for a brand new Redskins Stadium.
2. We spent a number of days at school enjoying the “Aggressive Steadiness” recreation by which teams of scholars performing as crew house owners bid for the companies of fictional baseball gamers. In our recreation, every crew knew with certainty the marginal income product (MRP) of the person gamers in addition to the gamers’ contributions to the success (wins) of the crew. We used three fashions: open-cry public sale, player-agent auctions, and a system with wage caps. A. Clarify the financial idea of marginal income product. Why is a participant’s MRP totally different for groups in bigger markets than it was for these in smaller markets? How does a participant’s anticipated MRP have an effect on the wage provided by totally different groups? How does the massive market vs. small market MRP for a person participant have an effect on aggressive stability? B. Usually gamers ended up incomes salaries higher than their recognized MRP even supposing owner-groups had been rewarded for ending the sport with greater earnings. Clarify how/why this occurred. Focus on the impression of different proprietor targets in the marketplace for gamers. Describe how the actual world market without spending a dime brokers (the place groups have solely estimates of gamers’ MRPs and impression on crew success) is much like and totally different from the market in our recreation. C. Within the ultimate spherical of the sport, the league house owners imposed wage caps. Focus on the arguments in favor of imposing wage caps, each these arguments the house owners make in public and any non-public motivations house owners may need. Clarify the gamers’ place on wage caps. (Provide and demand graphs illustrating the positions of the 2 sides could be helpful in answering this query.)
three. Demand for faculty girls’s sports activities and worldwide competitors involving girls’s groups appears a lot greater than what we see for skilled girls’s sports activities leagues. What would possibly clarify the distinction? (Whereas we didn’t discuss this query straight, you’ll be able to take into consideration this query by excited about the challenges of beginning and/or working a girls’s skilled sports activities league. Who would you anticipate to be your major prospects? What challenges would possibly you face in attracting these prospects?) Is it attainable that discrimination is an element? In that case, discrimination by which group(s)?
four. Select a person, a crew, or a bunch who you’re feeling could also be topic to discrimination within the sports activities world. (You may contemplate athletes, coaches, crew administration, sports activities broadcasting, and many others.) What could be the financial or enterprise exams or proof you’ll use to make the declare of discrimination? On the opposite facet, what could be the financial or enterprise exams or proof that you’d use to make the case that there had been no discrimination?
5. California has lately handed a regulation that may permit school athletes to earn cash utilizing their likeness by way of endorsements or video video games or utilizing their abilities outdoors of faculty (by way of teaching, for instance). Faculties and universities wouldn’t be required to offer athletes with any compensation aside from that which they already obtain by way of scholarships, and many others. What’s the financial case for athletes having the precise to earn cash primarily based on their athletic abilities and recognition whereas in school? However, what’s the financial case for the NCAA to proceed to strictly restrict earnings to school athletes? Don’t overlook points like aggressive stability in excited about this query.
6. Let’s return to the query of permitting school athletes to earn cash whereas nonetheless at school. Contemplate two situations: Initially, the NCAA threatened to ban colleges within the state of California from collaborating in NCAA-sanctioned occasions. What could be the financial penalties of such a call? Alternatively, assume that the NCAA says (in impact), “Okay, superb. No matter.” Would you anticipate different states to comply with California’s lead? Clarify why or why not from a enterprise/financial perspective.
7. Outline aggressive stability. Is it a reliable concern of crew house owners? Clarify why or why not. Determine the widespread leagues responses to acknowledged issues about aggressive stability, and consider their effectiveness from an financial perspective.
eight. It might be argued that either side lose any time there’s a work stoppage (strike or lock-out). What are the financial explanations for why strikes or lock-outs happen?