The formation of competitive balance in the national hockey league
Kiuru, Jesse (2016)
2016
Kauppatieteiden tutkinto-ohjelma - Degree Programme in Business Studies
Johtamiskorkeakoulu - School of Management
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Hyväksymispäivämäärä
2016-12-16
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:uta-201612202879
https://urn.fi/URN:NBN:fi:uta-201612202879
Tiivistelmä
Objectives
The objective of the thesis is to study the formation of the competitive balance in the National Hockey League. Unlike many studies related to the topic, I found it interesting to consider both the athletical and financial side of competitive balance. When it comes to the financial side, it is necessary to focus on the revenue sharing program along with franchise valuations. On the other hand, the objective is to show that there are major drawbacks when the competitive balance is solely related to the financial side of the business. When we also consider the athletical side of the business, it is possible to get a more comprehensive understanding of the formation of competitive balance in the National Hockey League.
Findings
Using empirical data from the NHL website along with relevant studies, I was able to create comparison between the financial competitive balance and the athletical competitive balance. The league utilized a revenue sharing program to address the financial inequalities, but it seems rather inefficient considering the significant differences in the franchise valuations. There are also major differences in the market size and fan base between franchises, which do not create equal possibilities for financial success. On the other hand, the athletical success of each franchise is efficiently taken into consideration. Systems such as the reverse order draft allow franchises to gradually strengthen their competitive balance regardless of their financial situation.
The objective of the thesis is to study the formation of the competitive balance in the National Hockey League. Unlike many studies related to the topic, I found it interesting to consider both the athletical and financial side of competitive balance. When it comes to the financial side, it is necessary to focus on the revenue sharing program along with franchise valuations. On the other hand, the objective is to show that there are major drawbacks when the competitive balance is solely related to the financial side of the business. When we also consider the athletical side of the business, it is possible to get a more comprehensive understanding of the formation of competitive balance in the National Hockey League.
Findings
Using empirical data from the NHL website along with relevant studies, I was able to create comparison between the financial competitive balance and the athletical competitive balance. The league utilized a revenue sharing program to address the financial inequalities, but it seems rather inefficient considering the significant differences in the franchise valuations. There are also major differences in the market size and fan base between franchises, which do not create equal possibilities for financial success. On the other hand, the athletical success of each franchise is efficiently taken into consideration. Systems such as the reverse order draft allow franchises to gradually strengthen their competitive balance regardless of their financial situation.