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Comparing The National Football League And How They Gained Monopoly Power

881 Words4 Pages

For many years now, the National Football League’s economic status has remained a main focal point within the economic community. The National Football League is the highest level of professional football in the United States and one of the most prominent organizations amid worldwide professional sports. Many people within the business community argue as to whether or not the National Football League is truly a powerful modern day monopoly or cartel. “How They Gained Monopoly Power” written by Brent Tuchner and Andrew Goldberg address the argument of both parties.
The National Football League originated in 1920 as the American Professional Football Association. In 1922, the American Professional Football Association changed its name to the National Football League and fielded 18 teams. (The NFL, Everyboy's Favorite Cartel) By the 1950’s …show more content…

But is the league an actual monopoly? A little known fact about the National Football League is that it is a privately owned and organized as a cartel. A cartel is a collection of businesses or countries that act together as a single producer and agree to influence prices for certain goods and services by controlling production and marketing. (investopedia) Each team in the league operates as its own company within an open market; therefore they are choosing to be involved. Tuchner and Goldberg make it a point to mention the fact that the league is a formal organization with 32 separate companies that are free and operate under a governing body which is the National Football League. (Tuchner & Goldberg, 2012) Although cartels are subject to anti-trust laws, sports leagues such as the National Football League have historically been exempted from such laws, since although the teams compete with each other athletically; they represent a larger brand image and must cooperate on many business decisions. (World of Sports

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